Corporate Scandals: an Analysis of the Legal Framework of Corporate Governance in Kenya
Abstract
The study has examined the legal framework of corporate governance in Kenya. It has highlighted
the corporate scandals that have brought down big companies, in the United Kingdom, Maxwell,
Polly Peck, Barrings, in the United States, Enron, WorldCom and Tyco International that led to
the above-mentioned countries to come up with corporate governance practices that are
appropriate.
Kenya’s entities have had a history of poor governance system with about 70% of the scandals
attributed to weak corporate governance practices, lack of internal controls, and weaknesses in
regulatory and supervisory systems. The study analyses the laws and corporate governance codes
of best practice that have been adopted in Kenya and whether they comply with international
standards while at the same time addressing Kenya’s specificities and reform needs.
Lastly, the study based on the findings of the analysis of the situation in Kenya offers
recommendations for reform on the laws governing corporate governance in Kenya and suggest
ways of promoting good corporate governance practices.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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