IFC, Kenya markets regulator begin second phase of CEOs training

Money Markets

CMA chief executive Paul Muthaura. PHOTO | FILE 

By BRIAN NGUGI, bnjoroge@ke.nationmedia.com

In Summary

• The Capital Markets Authority and World Bank's IFC are training directors of NSE-listed firms on corporate governance code.
• It covers topics such as rights of shareholders, ethics and social responsibility as well as risk management and internal control.
• IFC says it has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide.

The International Finance Corporation (IFC), a member of the World Bank Group, and the Capital Markets Authority (CMA) have kicked off the second phase of a corporate governance programme for directors of listed companies and issuers in Kenya.

The training is aimed at raising awareness on the requirements of the corporate governance code among listed companies and issuers in order to ease its implementation beginning March 2017, the markets regulator said Thursday.

It involves training of 200 directors over a four-day period beginning today.

“These capacity building programs are expected to strengthen corporate governance among issuers in the capital markets and as a result enhance investor confidence,” CMA chief executive Paul Muthaura said in a statement, adding that strengthening of governance practices would boost investor confidence.

Mr Muthaura said the first phase of the programme held in November last year attracted 80 executives, chief financial officers and company secretaries from listed companies, noting that board members have shown interest in the current round.

Corporate governance

The class covers specific corporate governance code related topics such as rights of shareholders, ethics and social responsibility as well as risk management and internal control.

“Companies that practice good corporate governance tend to carry lower risk and generate higher returns for shareholders. They also have demonstrated better performance, and can secure cheaper capital and lower regulatory costs”, said Oumar Seydi, IFC Director for East and South Africa.

CMA began implementing corporate governance reforms in 2012, which culminated in the enactment of the new corporate governance code in March 2016.

IFC says it has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide.

The World Bank financing arm's corporate governance programme in the region is funded by the Swiss government.

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