Capital Markets Act – Code of Corporate Governance Practices for Issuers of Securities, 2015

Issued by the Capital Markets Authority, the Code of Corporate Governance Practices succeeds the 2002 Guidelines on Corporate Governance Practices by Public Listed Companies in Kenya. The Code sets out the principles and specific recommendations on structures and processes that companies should adopt in making good corporate governance an integral part of their business dealings and culture. The Code advocates for the adoption of standards that go beyond the minimum prescribed by law. The Code has moved away from the “Comply or Explain” approach to “Apply or Explain”. The Code applies to listed and unlisted public issuers. It seeks to promote sustainaibility and the ESG agenda. A Board is expected to have formal strategies to promote sustainability, paying attention to Environmental, Social and Governance (ESG) aspects of the business that underpin sustainability. Integrated reporting is promoted as the way to communicate progress, also with respect to disclosure on sustainability performance.

Scope

General sustainability/ESG/non-financial

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

All public issuers