The World Bank Group’s investment arm the International Finance Corporation (IFC) and the Capital Markets Authority (CMA) have signed a one-year agreement to strengthen corporate governance.
The two organisations will work together to implement the Code of Corporate Governance Practices for Issuers of Securities to the Public enacted in 2016 across the country.
CMA and IFC will develop a toolkit which will enable capital markets’ actors apply and monitor the new corporate governance standards when they issue securities in Kenya under the programme.
IFC and CMA will also seek to develop a reporting framework for issuers of securities to track how well they are applying the Corporate Governance Code, and to help independent governance auditors to provide assurance.
As part of the one-year programme, IFC and CMA will build a local network of corporate governance trainers and conduct sessions with boards and senior management of companies on how to adhere to the new Corporate Governance Code.
Through promoting sound corporate governance practices, Kenya’s capital market is expected to accelerate in development and attract increased domestic and foreign interest. The partnership will bring capital markets in Kenya closer to international best practices on corporate governance.
CMA began implementing corporate governance reforms in 2012, which culminated in the passing of the new Code in 2016.