Empowering African Businesses

Bill to harmonise Directors’ roles in Kenya mooted

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By Correspondent

IODK targets to professionalize role of directors in Kenya Proposed IoD Bill 2016 to have directors take personal liability of organizations actions and decisions made during their tenure

The Institute of Directors Kenya (IoDK), is pushing for the IoD Bill 2016 to pass into law, which aims to professionalize the role of directors in publicly listed companies and Parastatals.

The bill further seeks to establish IoDK to provide for the registration and regulation of the standards and practice of the profession and for connected purposes.

The institute will issue certificates of registration to its members annually as a form of quality assurance to the public bodies, entities, enterprises and companies on whose boards they are to be appointed.

Once passed, this will see all directors vetted by IoDK before they can assume their position in the respective organisations.

Duncan Watta, chairman of IoDK says, “one per cent of applied corporate governance in our organisations could result to 10 per cent increased GDP in our economy. Our mandate has never been more important. We are on a journey to transform the leadership in Kenya.”

Under the disciplinary provision in the bill, directors will take personal liability for their actions and decisions made during their tenure in the respective corporates. Those found guilty of any malpractice will be banned from seating in boards in Kenya and also punishable by law.

“Corporate governance will differentiate companies as customers expect more than just sale of goods and services. Companies will need to demonstrate that they are responsible businesses.

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Leaders therefore need to rethink their leadership style to increase and maintain their customer base.”

“Most board members are characterized by egoism and high IQ but that is simply not enough. Leaders need to reinvent themselves by living the habits of excellence. They need to be accountable to a lot more than the people around them,”  said Duncan.


The IoDK bill which awaits the third reading is one of the fasted bills to be put together in just eighteen months.

This is presumably due to the increased rate of corruption showing a gap in leadership due to lack of corporate governance. Most board appointments have been made based on political affiliations with no consideration to the qualifications of these roles.

IoDK will support directors in Kenya through world-class training with professionals drawn across the globe to raise the level of knowledge and skills and inculcate the highest standards of ethics.

This will improve the leadership and direction of corporate and other entities by enhancing the effectiveness of actual and potential directors.

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