The Law Affecting Corporate Governance in Kenya: A Need for Review

Abstract

There is increasing evidence that a country's legal system plays a significant role in determining the success of its corporate governance system. Research has shown that good corporate governance is more likely to be associated with countries with a strong legal system.1 However, in the recent move towards the privatisation of corporations, Kenya, like other developing countries, has adopted a corporate governance code that is drafted from a combination of codes from developed countries with little thought being given to the underlying conditions of the market in which this code is to be enforced. A significant amount of training of company directors on the importance of good corporate governance is underway.