The Capital Markets Authority has set sights on reviewing the code of governance audits to, among other things, gift the well-behaved companies with a relaxed schedule of up to a five-year cycle. Currently, the practice is annual.
The CMA’s acting CEO Wycliffe Shamiah, in a circular to the chief executives of listed firms on the Nairobi Securities Exchange, says the amendment will cover the frequency, cost, cycle and scope with a focus on risks. The regulator says companies with previous strong scores will be audited in three to five years while the laggards will be restricted to the annual scrutiny.
