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On April 2, 2026, the Capital Markets Authority (CMA) released its Report on the State of Corporate Governance of Issuers of Securities to the Public, demonstrating a five percentage point improvement in overall governance scores among listed companies and corporate bond issuers. The overall governance score increased from 74 percent in the 2023/2024 financial year to 79 percent in the 2024/2025 financial year, marking the eighth annual publication of this assessment. The CMA assessed 53 issuers listed on the Nairobi Securities Exchange (NSE) and corporate bond issuers against the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (CG Code), which is now a mandatory continuing obligation under the Capital Markets (Public Offers, Listings and Disclosures) Regulations (POLD). Board Operations and Control recorded the most significant single-year improvement, increasing nine percentage points from 68 percent to 77 percent, primarily driven by issuers realigning board composition to comply with the POLD Regulations, 2023, including formal designation of Independent Non-Executive Directors and Non-Executive Directors. The Banking, Energy & Petroleum, Insurance, Manufacturing & Allied, Investment & Investment Services, and Construction & Allied sectors all attained Leadership Ratings. The Energy & Petroleum sector achieved the largest sector improvement at 11 percent, while the Commercial & Services & Telecommunications sector was the only sector to record a decline of one percent. The CMA's assessment methodology has evolved from a disclosure-based approach to an implementation-based approach, requiring issuers to document specific initiatives demonstrating application of CG Code provisions. The Authority identified emerging governance issues requiring proactive issuer attention, including cybersecurity risk governance, artificial intelligence oversight, institutional investor stewardship, and minority investor protection. The CMA is finalising an Environmental, Social and Governance (ESG) Code for Issuers in partnership with the International Finance Corporation (IFC) and the NSE, aligned with International Financial Reporting Standards (IFRS) S1 and S2 standards. The Authority has also deployed an AI-powered Machine Learning ESG Analyst (MALENA) tool to enhance assessment efficiency and consistency. REFERENCES: Capital Markets Authority. Report on the State of Corporate Governance of Issuers of Securities to the Public. April 2, 2026. Available at: https://www.cma.or.ke/