Kenya’s corporate sector is at a crossroads. On one hand, the country has a growing number of private sector players driving innovation, job creation, and economic development.
On the other, boardroom failures, often rooted in weak governance and unethical leadership, are threatening investor confidence, shareholder value, and public trust. Now more than ever, the call for restoring ethical leadership in Kenya’s boardrooms is not just urgent – it is existential.
Corporate governance, at its core, is about accountability, transparency, and sound decision-making. When these principles are eroded, businesses collapse not because of poor markets, but because of internal rot.
Kenya has no shortage of governance codes, from the Mwongozo Code for state corporations to the Capital Markets Authority’s guidelines for listed firms. Yet implementation often remains a challenge, especially when leadership treats compliance as a checkbox, rather than a culture.
A recent example is the case of the Kenya Union of Savings and Credit Cooperatives (Kuscco). Long considered a key enabler of financial inclusion, Kuscco now finds itself mired in allegations of financial mismanagement.
Reports of unaccounted member deposits, irregular loan facilities, and opaque investment practices have raised serious governance red flags.
The ripple effect has not only shaken the cooperative movement but has also exposed systemic weaknesses in oversight, board control, and member engagement.
From listed companies to private firms and state agencies, corporate Kenya has witnessed a troubling pattern of directors engaging in conflict of interest, insider dealing, and weak risk governance.
So how do we turn the tide? First, ethical leadership must be non-negotiable. Board appointments should be based on competence, integrity, and independence – not patronage. Directors must undergo regular training in governance, ethics, and regulatory compliance to remain effective stewards.
Second, transparency must move from boardroom promises to public accountability. Disclosures, audits, and risk management must be standard practice, not crisis responses.
The writer is a communications & PR specialist.
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