Enhancing Kenya’s Securities Markets through Corporate Governance: Challenges and Opportunities
Dr. Jacob K. Gakeri

Abstract
The essential role played by corporate governance in the promotion of securities markets cannot be over-emphasized. Internal corporate governance structures of publicly held companies must inescapably imbue trust and enhance investor confidence in the organization. Similarly, the external corporate governance architecture must be facilitative and effective in safeguarding the securities markets in general. This paper argues that the current internal and external corporate governance structures for listed companies in Kenya are largely dysfunctional in safeguarding investor interest and promoting investor confidence as exemplified by incessant corporate scandals. The operative principles of corporate governance for listed companies, which are based on the dispersed ownership structure and whose enforcement matrix is “comply or explain” have not been particularly effective. More importantly, the obligations of directors, role of external auditors, shareholders and the ownership architecture have not failitated the institutionalization of a responsive culture of corporate governance. There is need for a paradigmatic shift.

Full Text: PDF