Deal set to sharpen skills of directors

From Left: International Finance Corporation (IFC) regional head, East Africa, Manuel Moses and IFC Director for East and Southern Africa Oumar Seydi. IFC inked a deal with the Institute of Directors Kenya (IOD) to promote corporate governancein the region on Wednesday. PHOTO | DIANA NGILA | NATION MEDIA GROUP 

In Summary

• In addition, the IFC plans to work with the government to influence the regulatory environment and ensure businesses are run in a transparent manner.
• By partnering with the IFC, the institute of directors seeks to tap long-term global experience in developing corporate governance in emerging markets.

By NATION CORRESPONDENT
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A partnership that seeks to promote best practice in corporate governance among businesses and institutions has been unveiled.

The World Bank lending arm, IFC, inked the deal with the Institute of Directors Kenya (IOD) on Wednesday.

The IFC said the plan is part of an East Africa corporate governance programme, which is aimed at boosting businesses for faster economic growth.

The two-year partnership will see the IFC offer training and skills development to IOD Kenya members, many of whom are corporate directors and senior managers, Africa corporate governance programme manager Chinyere Alimona said.

“We have done this in 10 African nations and we shall be providing the technical skills as implementing partners to professionalise corporate governance in Kenya.”

In addition, the IFC plans to work with the government to influence the regulatory environment and ensure businesses are run in a transparent manner.

The World Bank’s lending arm is also training people, who will transform institutions such as the IOD into consultants for foster good corporate governance.

IOD Kenya vice-chairman Duncan Watta said the organisation was in talks with the government to use its membership as a criterion in future corporate appointments.

“We are prepared to increase the number of highly skilled directors in the country in order to raise the governance standards in private and public sectors. Issues of integrity and corruption will be highly minimised once we have people with the right skills in leadership,” Mr Watta said.

GLOBAL EXPERIENCE

By partnering with the IFC, the institute of directors seeks to tap long-term global experience in developing corporate governance in emerging markets.

Corporate governance refers to the structures and processes by which companies are directed and controlled.
It makes companies more accountable and transparent to investors.

The programme is funded by the State Secretariat for Economic Affairs, Switzerland, and the IFC is the implementing partner.