Inadequate corporate governance structures in some of Kenya’s listed companies are keeping investors away from the Nairobi Securities Exchange, a professional association has said.
“In order to restore confidence, all capital markets participants need to instill ethics as the cornerstone of their dealings with clients,” said CFA Society of East Africa president Eleanor Kigen at the Financial Analyst’s Investment Conference in Nairobi yesterday.
Kigen said there is need to ensure boards and management of public listed companies carry out their duties to restore investor confidence.
At the conference, the Capital Markets Authority was praised
for its efforts in ensuring
former board directors of public listed companies are
accountable for their actions.
“We wish to work with analysts, boards of public, listed companies, investors and trading participants to genuinely improve corporate governance. Our aim is to protect the investor and make Kenya a much more attractive investment destination,” said Capital Markets Authority chief executive Paul Muthaura.
The Conference also highlighted the importance of behavior in influencing investment decisions where markets or individual securities could be distorted or rendered inefficient due to the influential biases of its participants.