The Kenya Capital Markets Authority has issued its annual report on the state of corporate governance among issuers of securities to the public, showing the overall governance score improved to 79 percent in the 2024/2025 financial year from 74 percent in 2023/2024. The assessment covered 53 issuers, including companies listed on the Nairobi Securities Exchange and corporate bond issuers, against the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015, which is now a mandatory continuing obligation under the Capital Markets Public Offers Listings and Disclosures regulations. The largest single-year gain was in Board Operations and Control, which rose by 9.44 percentage points to 77.37 percent, largely linked to issuers realigning board composition with the 2023 POLD requirements, including formal designation of independent non-executive directors and non-executive directors. All seven governance principles were rated at leadership level in 2024/2025, with Accountability Risk Management and Internal Control at 84.47 percent and Commitment to Good Corporate Governance at 84.88 percent among the highest scores. By sector, banking, energy and petroleum, insurance, manufacturing and allied automobiles and accessories, investment and investment services, construction and allied, and non-listed issuers achieved leadership ratings, while the agricultural sector remained at a fair rating and the commercial services and telecommunications sector was the only one to decline, falling 1 percent because of weaker performance in governance commitment, shareholder rights, stakeholder relations, and transparency and disclosure. The authority also said its methodology has shifted from a disclosure-based review to an implementation-based approach requiring issuers to evidence how they apply the code in practice. The report flags cybersecurity risk governance, artificial intelligence oversight, institutional investor stewardship, and minority investor protection as emerging issues issuers are expected to address. Looking ahead, the authority said it is finalizing an ESG Code for Issuers of Securities to the Public in Kenya with the International Finance Corporation, the Nairobi Securities Exchange, and listed issuers, with binding expectations aligned to IFRS S1 and S2, and has deployed an AI-powered Machine Learning ESG Analyst tool to support ESG and governance assessments.
Kenya Capital Markets Authority2026-04-02
Kenya Capital Markets Authority reports public issuer governance score rose to 79 percent in 2024 and 2025
The Kenya Capital Markets Authority reported that the overall corporate governance score for 53 public issuers rose to 79 percent in 2024/2025 from 74 percent a year earlier under the mandatory governance code framework. Board Operations and Control recorded the largest improvement, while most sectors achieved leadership ratings and the commercial services and telecommunications sector was the only one to decline. The report also highlights cybersecurity, artificial intelligence oversight, stewardship, and minority investor protection as emerging priorities, alongside work on a binding ESG code.