This article explains the corporate governance that has propelled KenGen to be the most profitable parastatal.
This framework is necessary to mitigate any possible conflicts of interests. Corporate Governance involves balancing the interests of all stakeholders of the company.
KenGen is committed to good corporate governance practises to achieve effective and responsible leadership characterised by ethical values of responsibility, accountability, fairness and transparency.
As a Company incorporated in Kenya, KenGen comply with the Capital Markets Authority (CMA) Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (The Code). Adherence to this code helps KenGen to manage its business responsibly and take the best possible decisions for both the Company and its stakeholders.
“The Board is also committed to the principles of good governance as stipulated in The Code of Governance of State Corporations which is aligned to the CMA code of corporate governance. Our corporate values and ethics are entrenched in our strategic and business objectives, which focus on accelerating value creation for our stakeholders,” KenGen states on its website.
KenGen’s Governance system involves:
Annual General Meeting of shareholders approves the Company’s audited financial accounts, Directors fees, appointment and remuneration of the Auditors and elect the Members of the Board.
The Board of Directors, which provides oversight for the Company, is committed to ensuring that the business and operations are conducted with integrity and in compliance with the law, internationally accepted principles and best practice in corporate governance.
The Executive Committee which reports to the Board is responsible for driving the strategic agenda, management and control of the company.
KenGen implements ISO 9001:2015 in Quality Management System and ISO 14001:2015 Environmental Management System. This demonstrates our unending pursuit for excellence in the organization’s operations.
CMA has put in place a Capital Markets Master Plan (CMMP) which sets out the strategic direction for the Kenyan capital markets for the next ten years.
KenGen has been an active player in the deepening of Kenya’s local capital markets and in recognition of this vital role, the Company was appointed a member of the Working Group One Committee of the Capital Markets Master Plan of the CMMP.
The Committee has the mandate of developing the Capital Markets avenues that will bridge the national funding gap.
