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CMA Issues the Fourth Edition of the State of Corporate Governance Report


Nairobi, 03 January 2022…The Capital Markets Authority (CMA) has issued the Fourth Edition of the Report on the State of Corporate Governance for Issuers of Securities to the Public in Kenya. The report is for the financial year 1 July 2020 to 30 June 2021.

The annual publication outlines CMA’s independent assessment of companies listed on the Nairobi Securities Exchange (NSE) and the issuers of corporate bonds are applying the principles and recommendations contained in the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (CG Code).

The CMA Chief Executive Wyckliffe Shamiah noted; ‘’Out of the seven governance principles assessed, there was improved performance on rights of shareholders, stakeholder relations and ethics and social responsibility’ The overall weighted average score for 2020/2021 assessment was 70.2% (good rating) compared to 72% (good rating) for the previous assessment’’.

The number of issuers in the leadership category remained 25, those in the good rating category decreased from 11 to 8, those in fair rating increased from 8 to 10 while those in needs improvement rating increased from 4 to 5. A total of 49 issuers were assessed during this period.

A sectoral analysis of performance revealed that the banking sector had the best weighted score with a leadership rating across all the principles of the Code while the agricultural sector had the least weighted score with a fair rating. ‘We continue to see boards of issuers exercising their duties and responsibilities with clarity, assurance and effectiveness in line with the Code while embedding good governance & sustainability practices into their business dealings and culture’, Mr Shamiah added.

The Authority continues to appreciate the importance of collaboration and partnerships, as demonstrated by the MoUs signed with a number of institutions including; the Institute of Certified Secretaries (ICS), Fund Managers Association (FMA) and Association of Retirement Benefits Schemes (ARBS).








The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact Antony Mwangi, Head of Corporate Communications on This email address is being protected from spambots. You need JavaScript enabled to view it.


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