Directors set for training to meet CMA board rules


Benard Kiragu, managing partner at Scribes Services. FILE PHOTO | NMG

Directors and top managers are set to undergo training on new corporate governance rules from March 19 in line with regulatory requirements that demand a 12-hour annual teaching on the subject.

Scribes Services, a corporate governance consultancy firm, is behind the training targeting board chairs, directors, senior executives and company secretaries.

The course is anchored on stringent corporate governance rules issued by the Capital Markets Authority that demand disclosure of directors' pay, their term limits, adoption of a code of ethics and review of board composition.

The course will highlight how executives and directors can manage conflict of interest, interrogate board reports to identify red flags in their firms, board’s role in growing and defending shareholder wealth and their risk management strategy.

“The training qualifies under the 12-hour director training requirements of the CMA code of corporate governance,” said Benard Kiragu, managing partner at Scribes Services.

“Helps board members to up skill and get an understanding of governance requirements to enable them serve the listed company better.”

CMA demands directors receive governance training for at least 12 hours annually.

The training comes after a significant number of companies listed at the Nairobi bourse last year failed to meet the regulators’ deadline to show compliance or non-compliance with the new corporate governance rules through board audits.

The audits on financial, governance and legal requirements will be part of the training. Kenya Airways, Mumias Sugar and Uchumi Supermarkets are some of listed companies which have been plunged into massive loss positions because of governance malpractices.