Lobby renews push for women directors quota

Dr Herta von Stiegel, chairperson WCD, Kenya. PHOTO | SALATON NJAU 

By IVY NYAYIEKA
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A lobby has renewed the push for regulation to impose a quota on the share of women on boards of listed companies.

The Kenya chapter of Women Corporate Directors (WCD) — a membership of female directors — argues that the quota system would break male domination of the companies top decision making
organ.

The Capital Markets Authority (CMA) under the tenure of Mrs Stella Kilonzo in 2012 pushed for introduction of quota rules to increase the number of women on corporate boards.

“While I would strongly prefer for change to occur voluntarily, the rate of inclusion is way too slow and hence legislative intervention is needed to level the playing field,” Dr Herta von Stiegel, the chairperson of WCD Kenya said Friday during an event that sought to fete top female directors.

If adopted, the rule would bring one of the most far-reaching changes in corporate Kenya where the share of women in boardrooms of listed companies stood at about 21 percent in 2017.

The representation in boards has risen from 18 percent in 2015 and 12 percent in 2012, according the Kenya Institute of Management (KIM).

Several global studies have found that companies with significant numbers of women in boards and senior management did better on a range of criteria, including leadership, accountability, innovation and risk management.

Norway demands that listed companies reserve at least 40 percent of board seats for women while the EU Commission is considering forcing companies to increase the number of women director on their boards.

More importantly, boards have traditionally been made up of retired men of similar backgrounds who recruit new colleagues from a network of friends.