The Capital Market Authority (CMA) is set to partner with the Institute of Certified Secretaries (ICS) of Kenya to develop offsite tools that will enable the regulator to align the governance audit toolkits and templates with the regulatory environment. The framework will include corporate governance reporting template and corporate governance scorecard together with the scorecard methodology for reporting, measuring and monitoring the application of the Code for industry players.
The regulator is in charge of oversight for 62 listed companies and 5 issuers of corporate bonds, making a collective of 67 issuer’s and aims to encourage them to become good and model corporate citizens by adopting and fully implementing the Code and related corporate governance laws, standards and practices.
The regulator says,’’ the principle of ‘commitment to good governance’ recorded the best performance in terms of leadership and the metrics here include such things as board charters, development and monitoring of the company strategy among others. On the other hand, there is a need for improvement on the principle of ‘transparency and disclosure’ which recorded less than desirable performance.’’
Adding that developing of a progression matrix for measuring and monitoring the application of the Code will enable us them to align the governance audit toolkits and templates with the regulatory environment in the capital markets sector for future reports.
Other partnerships have included the Nairobi Securities Exchange with the development of a corporate governance index to give issuers an opportunity to differentiate themselves in the market and tap into a growing pool of money committed to good governance and sustainability.