Capital markets can no longer afford to ignore climate, people and ethics

Kenya's Capital Markets Authority (CMA) has overhauled corporate board rules and introduced a sweeping ESG code. New regulations require that no more than one-third of directors depart at the same time and mandate documented succession plans for chairpersons and CEOs. The draft ESG code integrates sustainability into board oversight and risk management, requiring climate scenario analyses every two years. These reforms treat governance failures as balance sheet risk rather than reputational noise.