A Nairobi-based consultancy has opened a corporate governance school amid rising company failures due to malpractices.
Traction School of Governance will offer short courses on ethical corporate practices and certified secretary certificates, which is examined by the Kenya Accountants and Secretaries National Examinations Board (Kasneb).
Scribes Services, a corporate governance consultancy firm, will operate the school whose tutors will be industry practitioners expected to infuse practical knowledge.
Bernard Kiragu, Managing Partner at Scribes Services, said the school will seek to reverse the diminishing number of governance trainees at a time of rising demand for such personnel following increased regulatory scrutiny.
“We are also in discussions with other examiners and will soon launch corporate governance certificate and diploma courses,” said Mr Kiragu on Monday.
The school comes as Kenya implements the Code of Corporate Governance Practices for Issuers of Securities to the Public 2015, which becomes effective on March 4 and requires firms to make good corporate governance an integral part of business dealings and culture.
The code demands diversity and independence in the composition of boards, verification and protection of financial reports as well as timely and balanced disclosure of material information — a critical plank in avoiding regulatory penalties.
Company secretaries ensure their firms’ compliance with regulatory requirements, making their role prominent. Kenya Airways #ticker:KQ, Mumias Sugar Company #ticker:MSC, Imperial Bank and Uchumi Supermarkets #ticker:UCHM are listed companies which have fallen on hard times because of governance malpractices.
Mr Kiragu said that ethically run companies stand a better chance of attracting capital as well as a market for their products.