Editorials

EDITORIAL: Make boards great, again

MJ

Kenya Airways (KQ) chairman Michael Joseph. FILE PHOTO | NMG

Kenya Airways (KQ) chairman Michael Joseph is in order for calling for the professionalisation of the carrier’s board.

It is critical that the airline avoid the trend suffered by most State-owned firms that has seen their boards become a dumping ground for politically-connected individuals.

Packing a board with such directors, especially those who are unqualified, risks compromising its independence, leaving the board duty-bound to politicians and government officials and unable to act in KQ’s best interests.

Kenya Airways must avoid this fate if it is to have even a fleeting chance at future commercial success ahead of its renationalisation.

According to a World Bank toolkit on corporate governance of State-owned enterprises, political appointees on boards are likely to be more attentive to political or policy goals, but may pursue them to the detriment of the financial health of the company.

There should be a clear policy or guideline for nominating and appointing qualified directors to the board of not just KQ, but also State-owned firms.

The government will need to issue guidance on how it will make major decisions for the carrier as the majority owner.