Listed firms in Kenya improved in their corporate governance scoring an average of 75.7% in the year ended June 2023, up from a mean of 72.3% recorded in the previous year.
The score is based on comprehensive assessment features governance self-assessments by listed companies based on templates provided by the Capital Markets Authority (CMA).
CMA Chief Executive Officer Wyckliffe Shamiah says the analysis revealed that 31 issuers were rated in the leadership category on governance issues in 2022/2023 financial year, up from three companies in 2017/2018 when the Report was first published. To be rated in the leadership category, a listed entity must score 75 percent and above in the assessment.

Eight companies attained a rating of ‘good’, having obtained between 65% and 74%.
Six companies achieved a fair rating (between 50 and 64 percent), and four companies were categorized as needing improvement.
Sector-wise analysis revealed outstanding performance in the Banking, Manufacturing & Allied/Automobiles & Accessories, Insurance and Energy and Petroleum sectors, all achieving a leadership rating.
Conversely, other sectors secured a good rating, except for the Agricultural and construction and allied sectors, which recorded a fair rating.
The most substantial advancement was observed in the Investment and Investment services sector, increasing from 64% to 78.74%.
“The performance of listed companies on aspects of corporate governance serves as a vital guide for issuers, highlighting areas of excellence and pinpointing avenues for refinement, with an overarching aim to fortify corporate governance and sustainability practices, ensuring sustained growth, transparency and stakeholder confidence in the capital markets sector,” said Shamiah.
CMA evaluated the listed companies based on the seven principles of the CG Code namely Introduction to the Code, Board Operations and Control, Rights of Shareholders, Stakeholder Relations, Ethical and Social Responsibility, Accountability, Risk Management, and Internal Control, and Transparency and Disclosure.
The principle on Accountability, Risk Management and Internal Control emerged as the highest-scoring principle achieving a remarkable score of 80.77% (Leadership rating).