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Stewardship Code for Institutional Investors exposed


Nairobi, August 6, 2015…Capital Markets Authority has announced the commencement of a 30-day public exposure of a draft Stewardship Code for Institutional Investors. The Stewardship Code’s primary intent is to encourage deliberate and responsible management and oversight of assets by institutional investors through engagement with listed companies. The development of the Stewardship Code is part of the Authority’s ongoing reforms in corporate governance.


Institutional investors are pension funds, private pension scheme providers, insurance companies, takaful operators, investment trusts and collective investment schemes. There are two categories of institutional investors, firstly asset owners who collect and manage funds by way of investing in equities and other capital markets products on behalf of their beneficiaries or clients. Institutional investors are also asset managers who provide fund management and other investment services on behalf of their clients.

‘The development of a Stewardship Code for Institutional Investors is one of the critical pillars under the Corporate Governance Code for Public Listed Companies which is awaiting gazettement. The Stewardship Code will complement the various tools for enforcement and oversight of sound governance practices under the Corporate Governance Code. The roll out of yet another component of the corporate governance reform agenda will further reinforce the industry’s efforts of positioning the country as a premium investment destination’ said CMA acting Chief Executive, Mr. Paul Muthaura.

The Stewardship Code has been developed by a special committee appointed by the CMA Board known as the Capital Markets Stewardship Code Committee. The Committee’s eight members represent various institutional and capital markets players namely: National Treasury, Association of Retirement Benefit Schemes, Fund Managers Association, Listed Companies, Association of Kenya Insurers, Insurance Regulatory Authority, The Actuarial Society of Kenya and National Social Security Fund.

Mr. Muthaura noted that the Committee which was appointed in February 2015 has been facilitated by consultants from the World Bank Group. The Committee is expected to meet stakeholders during the exposure period so as to discuss the provisions in the draft Code and receive feedback for further refinement, before finalization for gazettement.

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