The Capital Markets Authority has approved the Capital Markets Corporate Governance Regulations, 2025, replacing the 2011 regulations, while also approving the draft Environmental, Social and Governance (ESG) Code for issuers of securities to the public in Kenya. The reforms are aimed at strengthening corporate governance standards, enhancing investor protection and aligning Kenya's capital markets with evolving global best practices.
The new Corporate Governance Regulations are intended to modernize the governance framework for market intermediaries while providing greater clarity on regulatory expectations and improving board oversight. The Authority says the revised regulations will strengthen board composition and stability by preventing disruptions caused by sudden or simultaneous changes in board membership. The measures are also expected to retain experienced directors with institutional knowledge while ensuring a balanced mix of new and experienced board members.
