11 January 2013

Kenya: Committee to Fortify Capital Markets Standards

The Capital Markets Authority (CMA) has announced the appointment of a nine-member corporate governance committee in an effort to strengthen standards in the capital markets.

The committee will be chaired by Catherine Musakali, who is the current chairperson of the Institute of Certified Public Secretaries of Kenya.

Other members include Maryanne Macheru of the Registrar of Companies at Attorney General's Office, Jackline Nyandege of the Ethics and Integrity Institute, nominated by the State Corporations Advisory Committee, Job Kihumba representing the Nairobi Securities Exchange and Rev Geoffrey Njenga from the Center for Corporate Governance.

Others are Mirie Mwangi from the University of Nairobi Business School, Mahmood Manji representing the CMA Board, Gituro Wainaina appointed as an independent member with experience on Corporate Governance from a regulatory perspective and James Mworia representing listed companies.

The committee will be expected to guide regular review of the corporate governance standards for publicly listed companies in adherence to best international practice and drive the implementation of amendments to the corporate governance guidelines and applicable regulatory requirements.

It will also help identify the necessary legal framework and institutional strengthening requirements to promote corporate governance address weaknesses in the enforcement of the corporate governance guidelines and strengthen capacity building and professionalism of key stakeholders in the market through sensitisation initiatives.

While announcing the appointments, CMA Acting Chief Executive, Paul Muthaura, noted that since the issuance of the guidelines to corporate governance practices by listed companies in 2002, there have been several developments nationally, regionally, and internationally, precipitating the need for special attention to be paid to corporate governance.

"The authority found it prudent to set up the committee since recent marketplace activities have pointed to the need to review the appropriateness of our regulatory regimes in light of the complexity of the challenges before us, to ensure that we succeed in striking appropriate balances and manage costs of compliance," Muthaura said.

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