Tackling the problem of corporate fraud in the kenyan corporations through the lens of corporate governance

Abstract

The thesis examines the issue of corporate fraud in the kenyan public and private firms. The thesis notes that the country has been grappling with a series of corporate frauds that has led to many firms to fail such as uchumi limited, chase bank limited and nakumatt limited among others. The rising cases of corporate fraud have been largely attributed to weak legal, regulatory and policy framework. Dishonest company directors, employees and other unscrupulous businessmen have been exploiting the gaps in the law to perpetrate illegal acts leading to the loss of investor capital. Further, the study notes that rising cases of corporate fraud in kenya is attributed to weak laws that govern the issue hence there is a need for reform. It notes that there have been regulatory challenges in terms of enforcing good corporate governance practices in corporations due to various institutional challenges. Also, there is a challenge in enforcing the code of corporate governed hence there is a need to ensure greater compliance and also reporting a mechanism by corporations. Lastly, the research explores the lessons that kenya can borrow from the united kingdom and also south africa on the ways in which the laws can be improved. The study noted that the two countries offer valuable lessons that kenya can use to improve its law, regulatory enforcement and also policy approaches. The recommendations offered by the study are important in addressing the problem of corporate fraud which shall help to minimize the rising cases of fraud.