The Treatment of Challenges in Listed Companies by the Cma Code of Corporate Governance Practices, 2015

Abstract

This study analyses the Code of Corporate Governance for Issuers of Securities to the Public, 2015 in order to find out whether it addresses the emerging corporate governance challenges in listed companies. The study traces the evolution of corporate governance generally, its historical developments in Kenya and examines the effectiveness of the legal framework on corporate governance in addressing the corporate governance challenges in listed companies. The general observation from this study is that the changes made in the last few years including the repeal of the old Companies Act, cap 486 and the coming into effect of the Companies Act, 2015 as well as the enactment of the Code of Corporate Governance for Issuers of Securities to the Public, 2015 have improved the corporate governance practices in listed companies. However, much more is required to be done to ensure adequate protection of investors, including strengthening the enforcement mechanism, shareholder awareness programmes to sensitize shareholders abought their rights and obligations as investors, ensuring board gender diversity among others.