Good corporate governance ‘will spur economy’

KenGen Company Secretary Rebecca Miano (right) receives the Company Secretary of the Year award from the Director of the Kenya Anti Corruption Commission, Prof P.L.O Lumumba, and Chairman of the Institute of Certified Public Secretaries of Kenya (ICPSK) Joe Mwangi Mbuthia on November 13, 2010. Photo/SULEIMAN MBATIAH

Kenya’s mission to attain new middle industrialised country status by 2030 requires public and private sector agencies to embrace high corporate governance standards.

The Kenya Anti-Corruption Commission director Patrick Lumumba said good corporate governance was a key driver for industrialisation and attaining the Millennium Development Goals.

He said Kenya had the potential to spur higher economic growth by encouraging organisations to efficiently use resources and uphold transparency and accountability.

Speaking during the inaugural Institute of Certified Public Secretaries of Kenya (ICPSK) champions of governance (Cog) awards in Nairobi, Prof Lumumba said that Kenyans had great hopes due to the promulgation of the new Constitution.

He noted that resources were in the past looted due to poor governance structures and accountability, leading to poor service delivery.

He singled out lack of drugs in hospitals and the collapse of public institutions as evidenced in the run-down railway transport system.

He said winners of ICPSK’s awards would inspire other public organisations to excel by upgrading their corporate governance standards.

NIC Bank won the COG award while first runners-up were Mavoko Municipal Council in local authorities category and Centum Investment in the finance and investment sector.

Ms Rebecca Nganga of the Kenya Electricity Generating Company won Company Secretary of the Year Award, while Mr David Malkwen of the Kenya Commercial Bank was the first runner-up.

Mavoko Municipal Council scooped the best local authorities’ award for compliance with laws and regulations, while Chuka council came second.

NIC Bank won the overall finance and investment award, while Centum Investment was the first runner-up in the category seeking to recognise high level of corporate governance.

There were no winners of industrial and allied sector award, statutory bodies’ award and co-operative sector award as entrants did not attain the threshold set by the institute.

ICPSK chairman Joe Mbuthia said entrants were evaluated on transparency, disclosure, compliance with laws and regulations, leadership, integrity, creativity, innovation, corporate social responsibility and enhancement of shareholder value.

Mr Mbuthia said the institute was established by an Act of Parliament to promote practice of good governance through development of members and dissemination of knowledge.