Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Spell out future strategies to investors – expert

NAIROBI, Kenya, May 16 – Local financial regulators have been challenged to come up with a specific policy that will push companies to prove their sustainability and help Kenyans make proper decisions before they invest in them.

Chairman of the King committee on corporate governance in South Africa Professor Mervin King says local investors and shareholders of companies are only given financial statements on the performance of the companies which do not include much of what they would want to hear.

King who is in Nairobi told Capital FM Business that the old trend has led to many shareholders of companies’ lose a lot of money when the firms become bankrupt or are in financial difficulties.

“You as the leader of any firm should have a duty to explain tangible future strategies of the company and assure that it will still be in business when they retire,” Prof King emphasised, “but with the financial reports alone the companies are used to giving, they cannot be able to tell that the company will be there in the next 40 years.”

He says an agreed policy on the issue would lead to many companies being honest and more open on the future strategies they have not only in terms of their financial sustainability to shareholders but assure quality service to the biggest stakeholder who is the consumer.

“Consumers also want to know that despite the company being in business; it is also concerned about their welfare by maybe ensuring less harmful products, environmental concern in terms of emissions and waste management, social corporate responsibilities that are not just for advertising purposes,” he challenged.

“Shareholders are not really excited about how much money the company made, but the returns they will get and for how long.”

He said there is need for an integrated and inclusive approach in what he termed as good corporate governance which will help key stakeholders of a company feel included by getting the desired

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...