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THE 22 ND ICPSK ANNUAL INTERNATIONAL CONFERENCE THE SAROVA WHITESANDS BEACH RESORT AND SPA, MOMBASA THEME INTEGRATED THINKING: A RELATIONAL PERSPECTIVE

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Page 1: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE

THE SAROVA WHITESANDS BEACH RESORT AND SPA, MOMBASA

THEME

INTEGRATED THINKING: A RELATIONAL PERSPECTIVE

Page 2: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

Conference sponsors

ICPSK SACCO SOCIETY LIMITED

Page 3: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

I take this opportunity to welcome you all to the 22nd Annual International Conference of the Institute of Certified Public Secretaries of Kenya at the Whitesands Beach Resort and Spa, Mombasa and thank you for finding time to attend this year’s Conference. The Theme of the Conference is “INTEGRATED THINKING: A RELATIONAL PERSPECTIVE.”

Allow me also to take this opportunity to appreciate our Keynote Speaker, H.E. Hon. Prof. Kivutha Kibwana, the Governor, Makueni County for finding time to grace the conference and deliver keynote address.

I also wish to appreciate CS Ashish Garg, Council Member, Institute of Company Secretaries of India, Mr. Cosma Gatere , Managing Director, Fedora Consulting Group, Rev. Dr. David Oginde, The Chancellor, Pan Africa Christian (PAC) University, Prof. Waswa Balunywa, PhD, Principal Makerere University Business School, Hon. Martha Karua, Party Leader Narc Kenya, CS. Justice Richard Mwongo, EBS, Principal Judge High Court of Kenya, Dr. Caesar M. Mwangi, The Managing Director and Principal Consultant at the Centre for Personal Leadership (CPL Africa), CS. Rose Lumumba, Governance Consultant, FCS. Jane Mugambi, CEO/Secretary State Corporations Advisory Com-mittee, Mrs. Dorcas Wainaina, Executive Director Institute of Human Resource Management and Mr. John Ng’ang’a, Motivational Speaker Taruma Consultancy Ltd.

I hope you enjoy the conference and add value through your active participation and sharing of experiences and innovative ideas.

We wish you a nice stay in this beautiful County of Mombasa.

CS. Tom O. OmaribaChairman, ICPSK

Message from the Chairman

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Page 4: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

On behalf of the Professional Development Committee, I welcome you all to our 22nd Annual International Conference. It is my sincere that you will have learning and enriching experience.

The theme of this year’s conference is “INTEGRATED THINKING: A RELATIONAL PERSPEC-TIVE.” We have invited speakers from diverse backgrounds to address various facets of this Theme. We will have plenary sessions where delegates will get to engage our esteemed speak-ers on various pertinent issues arising from the discussion topics. Our expectation is that the delegates will be fully engaged and will stimulate discussions and make remarks to enhance the deliberations.

I wish to take this opportunity to thank the individuals who have written articles for the Souvenir. These articles offer delegates an opportunity to further engage with variety of views from differ-ent individuals who have wide experience and exposure on the selected topics of the Conference and in this way enhance their own learning. Some of these articles will form part of the Institute Governance Journal in this year’s Editions.

I also take this opportunity to thank kasneb, CPF Financial Services Limited, Kenya Power Kenya, Kenya Power Pension Fund and ICPSK Sacco Society Limited for the financial support towards making the Conference a success. Your continued support is highly appreciated.

Members of my committee and secretariat are available to assist and give you the appropriate support during this Conference.

Please accept our regards as we wish you all a fruitful Conference and enjoyable stay in Mom-basa.

CS. Diana SaweCouncil Member, ICPSK and Conference Chairman

Message from Conference Chairperson

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Page 5: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

COUNCIL MEMBERS

CS. Tom Oyugi Omariba ChairmanFCS. Beatrice Meso Vice-ChairmanFCS. Waweru G. Mathenge Council Member FCS. Bernice Gachegu Council MemberFCS. Fredrick Wasike Council MemberCS. Calvin Nyachoti Mogute Council MemberCS. Jacqueline Oyuyo Githinji Council MemberCS. Diana Sawe Tanui Council MemberCS. Nelson Walusala Nyongesa Council MemberCS. Mercy W. Wanjau Council MemberCS. Salome Onyonka Council MemberCS. Obare Nyaega Chief Executive Officer

CONFERENCE ORGANIZING COMMITTEE

CS. Diana Sawe ChairmanFCS. Waweru G. Mathenge Member FCS. Kinuthia Wamwangi MemberCS. Mercy Wanjau MemberCS. Hilda Njeru MemberCS. Linda Nafula Namiinda MemberCS. Cynthia Sagini Member

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Page 6: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

EVENT PROGRAM

08:00 –09:00 1 Hr Delegates Registration Secretariat

09:00-09:10 10 Mins Opening Prayers and Introductions CS. Obare NyaegaChief Executive Officer – ICPSK

09:10-09:15 05 Mins Welcome Remarks CS. Jacqueline WaihenyaChairman, Coast Branch

09:15-9:30 15 Mins Chairman’s Remarks CS Tom OmaribaChairman- ICPSK Council

9:30-11:00 1 Hr 30 Mins SESSION 1Stakeholder and Public Involvement: Lessons from India

Integrated Thinking: A Relational Perspective

CS. Ashish Garg Council Member, Institute of Company Secretaries of India

Mr. Cosma Gatere Managing Director, Fedora Consulting Group

11:00- 11:30 30 Mins Health Break

11:30 -13:00 1 Hr 30 Mins SESSION 2Family as the Foundation of a Sustainable and Ethical Society

Rev. Dr. David OgindeThe ChancellorPan Africa Christian (PAC) University

13:00– 14:00 Lunch Break Hotel

14:00-15:00 1 Hr SESSION 3Institute’s Brand Launch and Strategic Plan Overview

CS. Obare NyaegaChief Executive Officer

15:00-16:00 1 Hr SESSION 4Keynote AddressStrengthening Citizen Participation in Governance of Counties

Prof. Kivutha Kibwana,Governor, Makueni County

16:00 –16:15 15 Mins Group Photo Secretariat

16:15 Health Break and End of Day One

Day One: Wednesday, 11th April, 2018

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Page 7: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

08:00- 08:30 30 Mins Delegates Registration Secretariat

08:30 –10:00 1 Hr 30 Mins SESSION 5Business Case for Integrated and Relational Thinking: Linking Theory To Practice

Prof. Waswa BalunywaPrincipalMakerere University Business School

10:00- 10:30 30 Min Health Break

10:30-12:30 2 Hrs SESSION 6Governance Scorecard: Assessing Contribution by Political Parties

Governance Scorecard: Assessing Contribution by Professionals

Hon. Martha Karua Party Leader Narc Kenya

CS. Justice Richard Mwongo, EBS.Principal Judge, High Court of Kenya

12:30-13:00 30 Mins Sponsor Privilege

13:00- 14:00 1 Hr Lunch Break Hotel

14:00-15:30 1 Hr 30 Mins SESSION 7The Role of Leadership in Organizational Excel-lence

Governance Assessment: Value Proposition

Dr. Caesar MwangiManaging Director / Principal Consultant Centre for Personal Leadership

CS. Rose LumumbaGovernance Consultant

15:30 Health Break and End of Day Two

08:00-08:30 30 Mins Delegates Registration Secretariat

08:30-10:30 2 Hrs SESSION 8Role of SCAC in Promoting Governance in State Corporations

Employee-Organization Relationship: Measuring the Business Value

FCS. Jane MugambiCEO/SecretaryState Corporations Advisory Committee

Mrs. Dorcas Wainaina Executive DirectorInstitute of Human Resource Management

10:30-11:00 30 Min Health Break Hotel

11:00-12:00 1 Hr SESSION 9:Dispelling the Work-Life Balance Myth

Mr. John Ng’ang’aMotivational Speaker Taruma Consultancy Ltd

12:00- 13:00 30 Mins Award of Certificates and Official Closure

13:00-14:00 Lunch Break

End of The 22nd ICPSK Annual International Conference

Day Two: Thursday, 12th April 2018

Day Three: Friday, 13th April 2018

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SPEAKERS

Prof. Kivutha Kibwana,Governor, Makueni County, Chief Guest

Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University

REV. DR. DAVID OGINDE is the Presiding Bishop of Christ is the Answer Ministries (CI-TAM). CITAM is focused on reaching urban communities in Kenya and the world, and has presence in several countries of Africa, USA, Asia, and Europe. Apart from its congre-gations, the church also provides education services through CITAM Schools and PAC University. CITAM provides media ministry through Hope FM and Hope TV. The Church also run a rehabilitation center for street children, and special community outreach sta-tions among the underprivileged communities in Kenya.

Rev. Oginde holds a PhD in Organizational Leadership from the School of Business and Leadership, Regent University, USA; and a Masters in Leadership degree from the PAC University, Nairobi. He also holds a Bachelor of Architecture degree from the University

of Nairobi. He undertook his Biblical Studies at the Trinity International University in Illinois, USA.

Rev. Oginde serves as the Vice-Chair of the Evangelical Alliance of Kenya (EAK) and President of the Pentecostal Assemblies of Africa (PAOA). He is also the Chancellor of the Pan Africa Christian (PAC) University. Rev. Oginde is involved in leadership training and has led several training workshops and seminars for corporates, government, and Church institutions on various aspects of leadership both locally and internationally. He hosts the Leadership Forum on Hope FM and writes a weekly column for the Sunday Standard. He has authored and co-authored several books and has published several journal articles.

Rev Oginde is married to Nancy and they have two children, Joyce and Chris.

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Page 9: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

Dr. Caesar Mwangi, Managing Director and Principal Consultant at the Centre for Personal Leadership (CPL Africa)

CS. Justice Richard Mwongo, EBS, Principal Judge, High Court of Kenya

RICHARD MWONGO was appointed a Judge of the High Court of Kenya in 2011. He is currently the Principal Judge of the High Court having been elected by his peers in 2013 to head the High Court. He earned his LL.B from the University of Nairobi in 1986. Immediately thereafter, he worked with Kaplan & Stratton Advocates a leading Kenyan law firm up to 1990. He then moved into the commercial world, joining Equatorial Com-mercial Bank as the Senior Legal Executive and Group Assistant Company Secretary of Sameer Group of Companies. From 1994, he practiced law through his firm R. M. Mwongo, Advocates, and then with Mwongo & Ngugi Advocates from 1999 to 2011, where he managed the firm’s non-contentious, procurement and arbitration practice.

He holds a Diploma in Business Management from the Kenya Institute of Management where he is admitted as a full member (MKIM). He also studied arbitration, and practiced both domestic and international arbitration. In 2000, he was admitted a Fellow of the Chartered Institute of Arbitrators (FCI.Arb.). In 2007 he was awarded Chartered Arbitra-tor status (C.Arb.), and placed on the International Register of Arbitrators for 2010-2014. He had extensive teaching experience as an Approved Tutor in arbitration in several countries in Africa, in respect of all modules of the Chartered Institute of Arbitrators. Between 2001 and 2007 he was the Chairman of the Public Procurement Complaints, Review and Appeals Board (PPCRAB). Under his tenure at the PPCRAB, it received accolades from the Kenya Government, the World Bank and the European Union. Between 2005 and 2012 he served, on appointment by the President, as a member of the Pending Bills Closing Committee (PBCC). Its task was to evaluate claims for contractual development and recurrent contracts against Government amounting to over one hundred and ten (110) billion shillings (then US $1.22 billion). The Government continues to implement the Committee’s recommendations.

Justice Mwongo was awarded the Elder of the Burning Spear (E.B.S.) by His Excellency President Uhuru Kenyatta on 12th December, 2013, for his contribution to law and justice – commendations being cited specifically in respect of public procurement and arbitration. Justice Mwongo is married, and has two daughters and a son.

DR. CAESAR is currently the Managing Director and Principal Consultant at the Cen-tre for Personal Leadership (CPL Africa) where he has been involved in designing and delivering people and Organizational improvement initiatives focused on facilitating Or-ganizational Improvement initiatives through effective leadership practices and devel-opment of enabling organizational values and culture. His work at CPL is predicated on his basic belief that organizational change can only take place when people embrace personal transformation.

Prior to this he worked as the Managing Director of Sasini Ltd, a publicly listed Agri-business in which he spearheaded the Company’s diversification strategy resulting in

sustained profitability. After Sasini he worked as Regional Director for the Global Village Energy Partnership and as turnaround CEO for the trans-africa energy enterprise Sunnymoney operating in five African countries.

In the past he has worked in South Africa as Business Strategy Consultant in Deloitte & Touche Johannesburg, Finance Director of the Independent Mediation Service of South Africa and subsequently as Associate Director for the Consultative Group in International Agriculture Research (CGIAR) responsible for Risk management and Internal Audit Activities in the Africa and Europe Region based in Addis Ababa.

He has a deep interest in issues of organizational effectiveness based on effective leadership practices and the need for ethical discourse in all organizational and societal developmental initiatives. He is currently the Board Chair of the Kenya Markets Trust (KMT) and the Kianda School in Nairobi and the Vice Chairman of the Strathmore University Council.

His academic background includes a PhD. in Organizational Performance and Change Management from the Rand Afrikaans University (current University of Johannesburg), an MBA from the Wits Business School in Johannesburg and a BA in Economics from University of Nairobi. He is also a Certified Public Accountant (CPA), a Certified Internal Auditor (CIA) and a Certified Executive Leadership Coach.

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Page 10: THE 22ND ICPSK ANNUAL INTERNATIONAL CONFERENCE · Rev. Dr. David Oginde, PhD, The Chancellor, Pan Africa Christian (PAC) University REV. DR. DAVID OGINDE is the Presiding Bishop of

John N. N.Ng’ang’a, Founder, CEO, Taruma consultants Ltd.

JOHN N. N.NG’ANG’A retired from the Kenya country leadership team of a multination-al oil company as its Distribution & Operations Manager. He has experience in business analysis, retail marketing, aviation marketing, warehouse & depot management, trans-port logistics, and was in charge of developing the multinational ‘s Transport Standards in ten African countries. He is the founder and CEO of TARUMA CONSULTANTS LTD.

John speaks and writes extensively on leadership and interpersonal relations. He writes a Weekly Meditation found: www.johnnganga.org, and has authored several books including Friendship, Secret Of Contentment, Leadership – King David Style, A

Leader’s Source of Influence, Christian Professionals-Leading In The Market Place and recently The Character Of An Influential Leader, Integrity:The Litmus Test Of Good Leadership and Finding A Life Partner .

John holds a Bachelor of Commerce degree and has diverse certifications in management and petroleum operations from within and outside Kenya. He earned an MA in Leadership at International Leadership University, Nairobi-Kenya.John was chairman of kscf 1983-86.He is currently the chief patron kscf and in the advisory board of FOCUS. He is keen on helping organizations develop ethical leadership

FCS. Jane Mugambi, OGW, Secretary, State Corporations Advisory Committee

FCS. JANE MUGAMBI is currently the Secretary of the State Corporations Advisory Committee (SCAC). SCAC is the apex policy advisory organ of the Government of Ken-ya on all matters appertaining to the Management of State Corporations (State Owned Enterprises).

She holds a Bachelor of Arts Degree from the University of Nairobi, a Masters Degree in Business Administration from Kenyatta University and is a final doctoral student in Business Administration and Management of Dedan Kimathi University in Kenya. She is a member of the Institute of Human Resources Management (Kenya) and Chartered Institute of Marketers (UK).

As Secretary/CEO of SCAC, Jane is responsible for providing advisory to the President, sector Cabinet Secretaries, Principal Secretaries, Boards and Chief Executive Officers of SOEs on matters relating to governance and manage-ment of State Corporations. She prepares board papers for the Committee and implements any Committee deci-sions thereof. She is also responsible for accounting for the resources of the Committee.

Jane was the Secretary to the Presidential Taskforce on Parastatal Reforms appointed in July 2013 to undertake re-forms in the SOEs Sector. Jane is currently the Secretary to the Presidential Committee on Implementation of Para-statal Reforms to ensure that reforms are executed in a timely. Jane is a champion of corporate good governance being the bedrock for achieving organizational objectives, growth, profitability and sustainability. In 2014, Kenya was admitted by the OECD as a Member of the SOE Network for Southern Africa. Jane Chaired the Taskforce developing a “Handbook for SOEs on Corporate Ethics and Business Integrity” which was launched in 2016.

Prior to joining the Public Service, Jane served at the Kenya Methodist University for 14 years where she rose to the position of Principal Nairobi Campus. Jane has been honored with an award of the Order of Grand Warrior (OGW) by His Excellency the President of the Republic of Kenya.

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COSMA GATERE is a consultant in organisational communication and Relational Think-ing. He spent a decade working internationally with the World Bank where he garnered extensive experience in stakeholder engagement, public consultations and policy com-munication. He has also worked for Coca-Cola Africa and Ogilvy and consulted for a number of major organisations. His firm Fedora Consulting specialises in measuring and managing stakeholder relationships to provide insights that drive change and sustained results, leadership and change communication, knowledge management and public consultations. He is an experienced trainer, facilitator and speaker.

Mr. Cosma Gatere, Managing Director, Fedora Consulting Group

CS Ashish Garg, Council Member, The ICSI

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Hon. Martha Karua, Party Leader, Narc Kenya

MARTHA KARUA is an accomplished lawyer and politician with over three decades of experience behind her. She is renowned for her uncompromising integrity, passion for gender justice /social justice, Inclusive governance, conflict resolution and develop-mental issues. Martha is a brand in consistency and passion for what she believes in.

She has over two decades of experience as a member of parliament, seven of which she served as a cabinet minister. As water minister she is credited with implementing Kenya’s water sector reforms that improved governance and service delivery.

As minister of Justice and Constitutional affairs, she was the lead negotiator for the government during the post-election crisis. She was involved in the constitutional making process and as minister oversaw the crafting of leg-islation that enabled the successful completion of the constitutional review, ushering Kenya’s 2010 constitution.

She resigned on principle in April 2009.

Martha is the party leader of Narc Kenya on whose ticket she ran for president in Kenya’s 2013 March general elec-tions, and for governor Kirinyaga in 2017. She is remains active on Kenya’s National scene.

CS ASHISH GARG, is a Post Graduate in Economics (M.A.) and Commerce (M.Com.) and Graduate in Law (L.LB.) from the Vikram University, Ujjain and a Fellow Member of the Institute of the Company Secretaries of India (FCS). He has been elected to the Central Council of the ICSI for the term 2015-2018. He is Chairman of ICSI Direct Tax Commit-tee. Mr. Garg is also member the Cost Accounting Standards Board of the Institute of Cost Accountants of India. He has been nominated as Director on the Board of ICSI Institute of Insolvency Professionals.

Mr. Ashish Garg is highly passionate about the Profession and actively participates in the activities of the Institute. He is Practicing Company Secretary at Indore, financial capital of Central India Region since more than last 16 years and having specialization in corporate laws, organizational restructuring and corporate legal counseling to companies and appearances before Company Law Board and Ministry Corporate Affairs. He has been the visiting faculty at various Management Institutes of Indore for MBA and other Professional courses and de-livered lectures regularly as invited speaker in the conference of Company Secretaries and Chartered Accountants. Mr. Garg is regular Speaker at various International conference(s).

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CS. Rose Lumumba , Governance Consultant

CS. ROSE LUMUMBA is an advocate, investment banker and corporate governance practitioner currently working with the IFC. East Africa corporate governance program. she previously worked in the capital markets industry for a period of 20 years where she held various positions. She has vast experience in company law and practice, in-vestment banking and advisory.

Rose is a specialist in Corporate Governance reform, regulation, board evaluations, training and practice, financial law and capital raising advisory. She is a mentor and team leader. She is an Accredited Executive Coach and Consultant and undertakes Coaching for Executives in Senior and Middle Management positions.

Mrs. Dorcas Wainaina, Executive Director, Institute of Human Resource Management (IHRM)

MRS. DORCAS WAINAINA is the third Executive Director of the Institute of Human Resource Management (IHRM) and the first female holder of that office since the in-ception of the Institute 30 years ago. She is a Certified HR Management Professional (HRMP) with over 15 years’ of experience in Continental Africa, Asia and Latin America. She holds an MBA in Business Administration (Human Resource Management option) from Kenyatta University and Bachelor of Education Degree (Linguistics and Literature) from the University of Nairobi (UoN). She also holds a Higher Diploma in Human Re-source Management from the College of Human Resource Management (CHRM).

She is a Fellow of the American Academy of Project Management (AAPM), serves in the Board of Honorary Advisors for Global Academy of Finance Management (GAFM); she is a Certified Chartered HR Analyst (CHRA) and an excellent trainer.

Mrs. Wainaina is also an entrepreneur with a wealth of experience on business turn around strategies. She strongly believes in hard work and excellence a philosophy she endeavors’ to uphold in every aspect of her life.

Professor Waswa Balunywa, Principal, Makerere University Business School (MUBS)

PROFESSOR WASWA BALUNYWA is currently the Principal of Makerere University Business School (MUBS). He has been teaching in the university over the last 30 years primarily in the areas of business and in recent years he has taken to teaching Entre-preneurship, Strategy, Change Management and Leadership among others. He led the team that created MUBS one of the leading Business Schools in the region. The School that started as a Faculty of Commerce with one degree programme and less than 200 students has now over 20 undergraduate programmes, 11 Masters programmes, and a PhD. The current population in MUBS is approximately 17,000 students.Balunywa holds a PhD in Entrepreneurship from the University of Stirling in the United

Kingdom and has an MBA from the University of Delhi in India.

In his profession, Balunywa has published books and articles in various journals. He has been the team leader of the Global Monitor Studies, an international research on entrepreneurship. The Professor is a blogger and writes exten-sively on the economy. You can find some of these articles on http://waswa-balunywa.blogspot.ug/

He has been a member of different Boards including Bank of Uganda, Uganda Airlines among others. He currently serves on the Madhivani board.

Balunywa is also a social entrepreneur and works with members of his family to support vulnerable women in Iganga district. The Balunywa Foundation of which he is a director is trying to put girls who have been denied education into schools. He is widely travelled and has interest in yoga and wrestling.

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TOPICS SYNOPSIS

1.Strengthening Citizen Participation in Governance of Counties

The promulgation of the Constitution of Kenya, 2010 brought about a paradigm shift in the way decisions are made in Kenya more so when dealing with a myriad of issues affecting the general public. The Constitution has to a large extent adopted the integrated thinking approach to the decision making process. Integrative thinking helps us solve problems, reduce conflict and manage tension by embracing different and opposing ideas and especially those that conflict with our own. Integrative thinkers acknowledge the valuable contribution of each and every point of view and form a rich menu of possibilities that help in solving the problem at hand.

The Constitution takes cognizance of the fact that the all sovereign power belongs to the people of Kenya and the people may exercise their sovereignty directly or through their elected representatives (Article 1(2)). It therefore, in a number of provisions, calls for the involvement of people in the decision making process. Article 10 of the Constitu-tion spells out the national values and principles of governance inter alia to include democracy and participation of the people, inclusiveness, good governance, integrity, transparency and accountability.

Ostensibly, public participation in the decision making process in Kenya remains a fundamental pillar of the Kenyan Constitution and more so in the management of Counties. It spans across matters relating to equality and non-dis-crimination (Article 27); management, protection and conservation of the environment (Article 69); legislation and conduct of legislative business both in Parliament and in the County Assemblies (Article 118); decision making (Article 174); governance of urban areas and cities (Article 184); financial matters (Article 201); policy making (Article 232), amongst others.

Both the national and county governments recognize that the people’s ideas and input on a number of issues planned to be implemented at various levels is crucial in helping to come up with solutions to local problems. Further, the resources are limited and it calls for concerted efforts to ensure that they are allocated to areas with maximum impact on the society. Various stakeholders are invited to various fora to give views which are incorporated to give a better and all inclusive solution to a number of issues bedeviling the locals. Of critical importance are the County Integrated Development Plans which are a conglomeration of various views from the local populace that culminate in a number of projects and strategies intended to address their problems leading to an improvement in their livelihood.

The objectives of this session are to enable the participants;a) Appreciate the extent of public participation in Governance of Counties in Kenya;b) Get an overview of the success stories (or otherwise) of public participation in the Governance of Counties;c) Understand the challenges affecting public participation in the Governance of Counties;d) Understand the interventions/steps to be taken to strengthen public participation in Governance of Counties.

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2. Stakeholder and Public Involvement: Lessons from IndiaThere has been great quest for equitable, inclusive and sustainable growth -which are fundamental to the robust and thriving development - in India. Furthermore, the clamor to build a society/organization that provides equal op-portunities and is socially sensitive and responsible is on the rise. This has been prompted by the prolonged uneven distribution of the benefits of growth and the widening gap between the haves and the have not which many believe, has been the root cause of social unrest in India. That notwithstanding, there is an attempt to ensure that the de-velopment of all policies is driven by the focus on the multidimensional view of human deprivation and poverty, the concern for the disadvantaged in society, the fundamental human rights and the need to ensure equal distribution of resources and opportunities.

The Indian government believes that stakeholder participation in the process of formulating policies and other gov-ernance matters of societal interest is one of the critical aspects of good governance. For instance, the Indian Gov-ernment developed an e-Government application on the Government to Citizen to Government (G2C2G) model, the first of its kind that was based on stakeholder feedback and participation. This was poised to improve the relations between citizens and the government as well as improve the efficiency of the current practices of government.

The objectives of this session are to enable participants:1. Understand the extent of stakeholder and public involvement in offering solutions to a number of issues affecting

the organization/society;2. Recognize the modalities/methodologies of stakeholder involvement in the Indian economy; 3. Enumerate the challenges facing the participation of stakeholders in organizational/national matters in India and4. Highlight the success stories of participatory governance in the Indian economy.

3. Integrated Thinking: A Relational PerspectiveIntegrated thinking is a relatively new theory that has revolutionized the decision making process and presentation of information by leaders in the corporate, political and social world. There has been a paradigm shift - by the corporate leadership - from the traditional approach to decision making that was geared towards looking at the bottom line (profitability) to one that focuses on the organization as a whole. The traditional approach mainly laid emphasis to the financials and the manner in which they were presented.

The contemporary business leaders despite maximizing returns to the shareholders are expected to focus on man-aging various stakeholder relationships. The King IV report for instance, recognizes that an effective organizational strategy requires that management understand the legitimate and reasonable needs, interests and expectations of the organization’s major stakeholders. Ideally, the organization and its stakeholders are mutually interdependent - the organization’s ability to create value for its owners depends on its ability to create value for other stakeholders. Resources are scarce and it requires integrated thinking in putting the same to good use and reducing conflicting interests by embracing various opinions in identifying the key value adding projects/activities. Major Corporates have revolutionized their operations through the involvement of their employees and other stakeholders at all levels. The executives in such corporates are cognizant of the fact that organizations consist of subsystems all of which work together to achieve the mandate of the entire organization.

The objectives of this session are to enable the participants;1. Get an overview of theory integrated thinking – its origin and advancements to date;2. Appreciate the role of integrated thinking in offering solutions to problems facing organizations and governments

in the 21st century and3. Understand the nexus between managing the various stakeholder relationships and the value creation/perfor-

mance of the organization as a whole.

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4. Governance Scorecard: Assessing Contribution by ProfessionalsProfessionals are technical specialists in the areas of their study and play a critical role in so far as the success of an organization and economic development of a country is concerned. Some of the professionals include – doctors, nurses, accountants, certified secretaries, engineers, architects, IT experts, human resource practitioners, lawyers, and bankers. Professionals are so called because they spend considerable amount of time in their studies, are regis-tered members of their respective professional bodies and subscribe to a Code of Conduct and Ethics.

Professionals in the various fields play a very vital role in so far as shaping the policy and practices of such fields are concerned. Further, they are in a number of times called upon by the Government and other organizations - as key stakeholders - to give their contribution on a number of proposed legislation, policies, projects and issues under review and earmarked for implementation. Various professional bodies send their memoranda – emanating from the contribution by members – as well as participate in fora that a number of issues are discussed. The whole concept of integrating the thinking of professionals – though not fully embraced – is critical in the formulation of solid and practical solutions to problems facing organizations and the society at large.

The objectives of this session are to:1. Elucidate the levels of representation by the professionals in various governance structures both at the organi-

zation and government level;2. Provide an insight into the extent to which professionals have contributed to a number of issues in society/orga-

nizations;3. Evaluate the extent to which the contribution provided by the professionals is incorporated in matters under

review;4. Highlight on areas of improved collaborations between the government/ organizations and professional bodies in

finding solutions to problems affecting organizations/ society.

5. The Role of Leadership in Organizational Excellence

The success or failure of an organization primarily depends on the tone at the top. The ability of the board and senior management to harness the synergies within the various subsystems in an organization is of critical importance as far as the achievement of the organization’s mandate is concerned. Ideally, the leadership of the organization should set and communicate its vision to its employees and stakeholders, allocate adequate resources towards implemen-tation of the various strategies and follow up to ensure that the set targets are implemented.

That notwithstanding, the leadership of the organization should adopt the integrated thinking approach to finding solutions to the organizational problems. An effective leader should get the feeling of all the various subsystems of an organization on a number of issues prior to making decisions. Employees in every function of an organization should feel part and parcel of the bigger vision.

Further to the above, leaders should be ethical. Ethical leadership is the overarching leadership quality without which the achievement of the objectives of the organization is in jeopardy.

The objectives of this session are to;1. Expound on how the tone at the top contributes to the success or failure of an organization;2. Provide practical examples of the nexus between ethical leadership, integrated thinking and organizational excel-

lence and3. Demonstrate the changing dynamics of leadership in the contemporary organization setting.

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6. Governance Assessment: Value PropositionIn the contemporary era, there has been an increasing demand for good governance in organizations. The share-holders and stakeholders are demanding for more accountability from persons entrusted to steer organizations. This has been as a result of a number of reported corporate failures across the world arising from the adoption of weak governance practices. Such failures include erosion of shareholder value, corporate brand degradation, closure of businesses, loss of jobs, environmental degradation and unending law suits. Shareholders (investors) recognize that for their businesses to be sustainable, good governance is paramount. Good governance is indeed the precursor to improved shareholder value, strong brand recognition, efficiency and sustainable institutions.

Governments across the world have also been advocating for good governance in the pursuit of their developmental agenda and provision of services to their citizenry. A number of governance codes that guide companies and gov-ernment agencies towards the entrenchment of good governance have been developed and are being implemented. However, in order to give assurance on the extent of compliance with the corporate governance principles, there is need to conduct periodic review of organizations to ascertain continued adherence to the principles in form of governance assessments. A Governance assessment is an independent assessment of an organization with a view to expressing an opinion on the adequacy and effectiveness of the organization’s policies, systems, practices and processes as well as the sustainability of corporations.

In light of this, this session aims to:a) Explain the concept of governance assessment and describe the process of undertaking the assessment; b) Highlight the progress made by the organizations in undertaking governance audits in Kenya as well as in other

countries andc) Highlight the value of governance assessments to stakeholders.

7. Governance in State CorporationsState Corporations play a critical role in the economic development of a nation. They are engines of economic devel-opment and are established to address specific areas of the economy. At independence, the Government of Kenya established State Corporations in a bid to implement government policies and execute programs for economic and social development of the country. The government, through the State Corporations, has been committed to en-hancing the participation of its citizens in economic activities in the various sectors distributed across the country.

There have been a number of governance challenges affecting the running of State Corporations in Kenya that has to some extent affected service delivery to the citizens. This has led to the government adopting and implementing a number of policies and strategies to ensure efficiency and good governance in the management of the affairs and resources of State Corporations.

The State Corporations Act, Chapter 446 establishes the SCAC whose mandate is to advise the Government of Kenya on all matters pertaining to the general administration of State Corporations. SCAC has been instrumental in advocating for good governance in State Corporations. It has conducted induction of all Boards of State Corporations in Kenya, it is a member of the Implementation Committee for the Report of the Presidential Taskforce on Parastatal Reforms and The Government Policy on Management of Government Owned Entities.

Of critical importance is the spearheading by SCAC of the development of the Mwongozo, The Code of Governance for State Corporations in Kenya which emphasizes the need for both integrated reporting and stakeholders’ manage-ment. Mwongozo specifies a number of governance parameters that need to be disclosed in the annual and other reports. By disclosing such information, both the shareholders and other users of the annual reports are in a position to get greater insights into the operations of the business, its relations with other stakeholders and its long term effect on the environment. All these factors have an impact on value creation, sustainability and service delivery by State Corporations in Kenya.

The objectives of this session are to;1. Enlighten the participants on the role played by State Corporations in Kenya;2. Demonstrate the governance challenges faced by State Corporations in Kenya and3. Elucidate the journey towards improvement of governance in State Corporations in Kenya.

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8. Family as the Foundation of a Sustainable and Ethical Society

The family is the foundation through which a society is established. The family set up is critical in shaping the fun-damentals of a sustainable and ethical society. Ideally, any nation that aspires to develop must give credence to the family by ensuring that the children are born and nurtured in a conducive environment that takes care of their health, nutrition, education, spiritual growth and the wholesome being of the child.

Apparently, at times, little regard is given to the family unit, a fact that has led to deterioration of ethics, more so, in the contemporary society. This has had a spiral effect to the society in which a number of societal ills such as corruption, drug abuse, disrespect to the elderly, loose morals especially among the youth, depletion of economic resources and rise in crime. Apparently, the Government of Kenya is cognizant of the fact that the family is the foundation of a sustainable and ethical society. It has been at the forefront in forging for a strong family unit by providing a conducive environment through which the family unit can thrive.

The Big 4 Agenda that was currently launched by the President of the Republic of Kenya, His Excellency Uhuru Mui-gai Kenyatta is geared towards strengthening the family unit. The President identified manufacturing (jobs), afford-able housing, health care and food security as his focus areas in the next five years. An analysis of the Big 4 revolves around creating a conducive environment to the citizenry and to the family unit at large.

The objective of this session is to;

1. Enumerate the challenges facing the family unit in the contemporary society;2. Enlighten participants on the role of the family unit in building a sustainable and ethical society and 3. Highlight on the intervention by the various stakeholders that are geared towards strengthening the family unit.

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9. Integrated Reporting for Good Corporate GovernanceThe decision making process facilitated through the integrated thinking approach culminate into an integrated report. Integrated reporting embraces a triple bottom-line approach where an organization reports on profits, people and the planet. Thus, an integrated report includes other matters that could significantly affect the organization’s ability to create value. Integrated thinking and reporting are both critical in enhancing connectivity in the organization and enhanced communication on value creation. Further, the increased demand for transparency means that users of annual reports are not only interested on the bottom-line but also in how employees are treated and remunerated, the impact of the organization’s activities on the physical environment, the contribution of the business towards the social welfare of the local people and the long term sustainability of the business which could have an impact on the customers, suppliers, financiers and ultimately shareholder value.

A number of codes that emphasize on integrated thinking and reporting as foundations of good governance have been developed. King IV Code on Corporate Governance for South Africa, 2016 spells out both integrated thinking and integrated reporting as some of the key foundational stones of the Code. The others include ethical leadership, the organization in society, corporate citizenship, sustainable development and stakeholder inclusivity.

In Kenya, Mwongozo, The Code of Governance for State Corporations and the Capital Markets Authority’s Code of Corporate Governance Practices for Public Listed Companies do emphasize the need for both integrated reporting and stakeholders’ management. Both codes specify a number of governance parameters that need to be disclosed in the annual and other reports. These parameters include board operations and control, rights and obligations of share-holders, stakeholder relations, ethics and social responsibility, accountability, risk management and internal control, transparency and disclosure, sustainability and performance management as well as the extent of compliance with laws and regulations. By disclosing such information, both the shareholders and other users of the annual reports are in a position to get greater insights into the operations of the business, its relations with other stakeholders and its long term effect on the environment. All these factors have an impact on value creation and sustainability of the business.

The objectives of this session are to;1. Enlighten the participants on the progress in the developments in reporting to the various stakeholders;2. Discuss the role of integrated reporting in advocating for good governance and 3. Enumerate the milestones (inclusive of challenges) in integrated reporting in Kenya.

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CORPORATE CITIZENSHIP AND STAKEHOLDER ENGAGEMENT IN THE KENYAN CONTEXT: CASE STUDY OF KENYA POWER

FCS. Beatrice MesoVice Chairman, Institute of Certified Public Secretaries of Kenya

IntroductionCorporate Citizenship may be defined as the recognition that a business entity or corporation has social, cultural and environmental responsibilities to the community in which it operates, as well as economic and financial respon-sibilities to its shareholders or immediate stakeholders. Thus, corporate citizenship is a wakeup call for a business organisation to come to terms with the need to meet its responsibilities to all of its stakeholders (direct or indirect) in attaining corporate sustainability.

Although corporate social responsibility (CSR) is one aspect of good corporate citizenship, the two are not equivalent. CSR has to do with the contribution a company makes to society through its social investment and philanthropy programs, and its engagement in public policy. Corporate citizenship on the other hand is about the manner in which a company manages its economic, social and environmental relationships, and the way it engages with its stakeholders. On the other hand, stakeholder engagement is the practice of interacting with, and influencing project stakeholders to the overall benefit of the project and its advocates. It entails companies engaging their stakeholders in dialogue to find out what social and environmental issues matter most to them about their performance in order to improve decision-making and accountability. There are different forms and approaches to stakeholder engagement as there are expected outcomes and objectives that inform any engagement with stakeholders.

Corporate Citizenship and Stakeholder Engagement in the Kenyan Context

The Constitution of Kenya 2010 puts the Sovereignty of the people at the centre of public and corporate governance. In particular, Article 1 of the Constitution installs “the people” as the cornerstone of relationships both in the private and public sector in Kenya. Indeed, the question is not whether the respective organization is under obligation to respect the will of the people but who is “the people” in the respective context and what is the extent of the respon-sibility to them.

Article 3 of the Constitution provides that “Every person has an obligation to respect, uphold and defend this Consti-tution.” This means the provisions of the Constitution are binding on all persons in Kenya including corporate citizens. In essence, it also means that the governance provisions of the Constitution including the National Values and Princi-ples of governance are binding on corporate entities. Thus, as part of corporate citizenship, corporations in Kenya are expected to adhere to national values and principles of governance including:

(a) patriotism, national unity, sharing and devolution of power, the rule of law, democracy and participation of the people;

b) human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination and protection of the marginalised;

(c) good governance, integrity, transparency and accountability; and(d) sustainable development.”

In the same regard, the Bill of Rights also applies to all and is binding to all state organs and all persons. Of course all persons here include corporate citizens. This means that corporate entities are obligated under the Constitution to respect the rights and freedoms of their stakeholders and all Kenyans. Consequently, where the action of a corporate entity tends to prejudice the realization of the rights of a citizen, such a person can obtain redress in law.

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In addition to the Constitution, there is an elaborate legal, policy and regulatory framework in place to enforce good corporate citizenship in Kenya. Corporate entities are expected in their interactions with their stakeholders and as part of their corporate citizenship responsibilities to comply with the relevant laws and regulations that guide the stakeholder relationships in the respective sector in which the company or organization operates.

The key laws besides the Constitution include the Companies Act 2015 which outlines the basic regulatory frame-work for any corporate entity operating in Kenya whether private or public company. Every company incorporated in Kenya is subject to the provisions of the Act in its relationship and interactions with shareholders and stakehold-ers. The Act outlines the compliance requirements for the diverse companies’ procedures including mergers and acquisitions, takeovers and winding up. It also imposes reporting requirements and governance audit requirements especially for public companies.

On the other hand, given that any corporate entity has to engage staff, the Employment Act 2007 and related labour laws are important in that they lay down the framework for engaging, managing and separating with staff. As an em-ployer, the Companies are bound by the Employment Act in dealing with the their employees. The Employment laws and regulations provide for the minimum rights and entitlements of different members of staff and the procedure of resolving disputes which companies are bound to adhere to in engaging with employees as stakeholders.

The Retirement Benefits Act is important in planning for retirement of employees and addressing the needs of pen-sioners while providing for the standards in setting up retirement schemes and the reporting requirements of the Retirement Benefits Authority. The Environment Management &Coordination Act (EMCA) guides especially industrial concerns in their operations to ensure they are sustainable vis-à-vis the environment. EMCA also defines how corpo-rate citizens interact with National Environmental Management Authority as the respective regulator. The Tax Laws are key in stipulating the tax obligations of corporate entities in the country which have to be adhered to as part of good corporate citizenship.

As regards listed companies, the Capital Markets Act guides the operations and the relationship of the company in relation to its investors and the Capital Markets Authority (CMA) as a regulator. In addition to the principal Act, the CMA has enacted diverse rules and regulations to guide specific aspects of corporate citizenship of listed companies including public offers listing and disclosures, securities lending and corporate governance among others. In addition, the Nairobi Securities Exchange (NSE) Listing Rules also apply to regulate the operations of all companies listed in the NSE.

With respect to public institutions or companies owned by the Government, the State Corporations Act applies to regulate and guide their relationship with the Government as investor or principal. The Public Finance Management Act (PFMA) outlines how revenue received from the Government for project implementation may be applied and accounted for. The PFMA is crucial in guiding the relationship of public corporate citizens with the Government and other agencies as well as development partners as stakeholders. Further, the Public Procurement and Asset Disposal Act guides public entities in the procurement process and is therefore important in determining how companies engage suppliers, contractors and even customers.

The foregoing governance and regulatory framework places responsibility on professionals and directors of corpo-rate citizens to apply and explain their compliance both to the stakeholders and regulators in their sector. In addition, the governance framework gives a checklist for the professionals and directors to review and rate their performance. In essence, the governance framework defines the parameters of stakeholder engagement and the rights and duties of the respective corporate citizen.

Corporate Citizenship and Stakeholder Engagement: Case Study of Kenya Power

Kenya Power being Kenya’s sole power distributor sits at the apex of the energy sector in Kenya. Indeed, one can say Kenya Power is the face of the power sector in the country although there are many other actors and stakeholders. Kenya Power is also a leader in the region in the number and complexity of its stakeholder relationships amongst corporates in this country. For instance, the company has over 6.2 Million Customers who vary from Households to SMEs to Light Industries to Heavy Duty Industries in this Country.

Kenya Power stakeholders include current and past employees, the Communities in which the company operates, generates, transmits and supplies electricity, the National Government which is the majority shareholder as well as one of the key customer, the Ministry of Energy which is the parent ministry, all the County Governments whose mandate includes energy reticulation, the sector regulator, namely, Energy Regulatory Commission (ERC), the envi-ronmental regulator (NEMA), the quality regulators (KEBS), private shareholders, Government Agencies in the Energy

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Sector including the national generator KENGEN, KETRACO, Rural Electrification Authority (REA), Geothermal Devel-opment Corporation (GDC), Independent Power Producers, Suppliers and Service Providers and Contractors among others. In addition to these local and direct stakeholders, Kenya Power is also bound to engage and interact with Cross Border Electricity Traders including Uganda Electricity Transmission Company Ltd (UETCL), Tanzania Electricity Supply Company (TANESCO) and Ethiopia Electric Power Company (EEPCO), Donor Agencies and Multilateral Part-ners and Trainees and Consultancy clients at its Institute of Energy Research; among others.

Each of the above stakeholders has a unique relationship with Kenya Power which the Board of Directors and Man-agement is obliged to consider in its decision making. Similarly, Kenya Power is expected to paint a holistic picture that reflects the expectations and aspirations of each of these stakeholders in its diverse corporate reporting re-quirements. Further, apply ourselves as an organization in compliance with our respective governance framework to ensure that we meet the needs of the diverse stakeholders and maintain the respective relationships for the wellbeing of our overall organization.

It is in the realization that the Office of the Company Secretary is more than Board Management, that the company has combined it with the role with the Corporate Affairs portfolios for the purpose of managing stakeholder engage-ment within and without the company. Further, the structure of Kenya Power is a reflection of the primacy of stake-holders in the attainment of its mandate. For example, in the period after devolution, the company has gone beyond Regional Offices which were based in the former provinces and now it has County Business Managers to make sure it is near the end customer as far as possible. This is a by-product of engagement of the County Government partners.Kenya Power has also developed numerous products and projects after stakeholders engagement which has en-abled it answer to the needs of its diverse stakeholders. Here are some of the examples: Kenya Electricity Modern-ization Project (KEMP), Last Mile Connectivity, BoreshaUmeme, Street Lighting Project, Kenya Off-Grid Solar Access Project and GPOBA Connections. GROPA is a World Bank financed project that connects slums and other high den-sity residential homes to electricity at a very subsidized rate of Ksh. 1, 160.

Indeed, even Kenya Power’s website is a reflection of the diversity of its stakeholders, the understanding of its re-sponsibility as a corporate citizen and keen efforts to engage all stakeholders. It includes a section addressing cus-tomer service, investor relations, public information, information on procurement opportunities, media centre and even a guide to common terminologies used in the power sector. Indeed, as a result of the company’s concerted stakeholder engagement efforts, Kenya Power was named the most Socially Innovative Company at Africa Investor Awards in 2016.

Kenya power is also renowned for the depth and consistency of its corporate social responsibility (CSR) activities. Most of its projects like primary schools electrification is both part of corporate service as a company as well as an effort to give back to the society. The Kenya Power staff are intimately involved in choosing CSR projects to be undertaken by the Company for them to cultivate ownership. In this way, CSR is not only for Kenya Power to convey to its stakeholders that it cares and values their relationship, but also as a stakeholder engagement opportunity in itself. The company has as a result invested mainly in the Education Sector as one way to give back to the society by helping mould future engineers. In fact, one of the results of stakeholders engagement is the Stima Sacco which was established to ensure financial stability of Kenya Power employees. The Stima Sacco has grown into fully pledged institution that is making impact beyond the company.

Conclusion

Corporate citizenship and stakeholder engagement are nascent sectors in Kenya which will keep evolving. Neverthe-less, there is ample and elaborate constitutional, legal and regulatory frameworks in place to guide players and pro-fessionals in this area. In particular, the Constitution of Kenya 2010, the Companies Act 2015 and the Capital Markets Act are the key guiding legislation outlining the rights and responsibilities of corporate citizens and their stakehold-ers in Kenya. However, more still needs to be done especially in domesticating international principles of corporate citizenship and stakeholder engagement as embodied in documents such as the King IV Report. But even then, corporate citizens in Kenya are doing their part in modelling good corporate citizenship and stakeholder engagement as demonstrated by the Kenya Power case study. Going forward, it is incumbent on key governance institutions and players like the ICPSK and its members to do their part in entrenching good corporate citizenship and stakeholder engagement as universal standards for all corporate players in Kenya and the region at large.

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GOVERNANCE SCORECARD: ASSESSING CONTRIBUTIONS BY POLITICAL PARTIES

S. K. Musyoka, Advocate, LLB, LLM;Former Vice President of the Republic of Kenya;Co-Principal, The National Super Alliance (NASA);Party Leader, Wiper Democratic Movement-Kenya (WDM-K);Partner, Musyoka Murambi Associates;Consulate of the Republic of Cyprus to the Republic of Kenya

IntroductionCitizens have needs and interests that they expect governments to address. In democratic societies, political parties aggregate citizens interests and needs and articulate public policy options to respond to these demands. As such political parties are principal agents in the constitutional process as an expression of the fact that the people organize themselves. 1 H. Rudolph qualifies this by describing political parties as an association of private citizens formed to promote certain political and economic beliefs and have them adopted as government policy. 2

In this sense elections provide voters the opportunity to choose among political parties offering distinct proposals and ideologies for addressing their needs. Ultimately, whether or not they win control of the government, political par-ties participate in governance. In Kenya, there are two ways political parties participate in governance either directly as the party in power or indirectly as the opposition. This is in pursuance to Article 91 (1) (d) of the Constitution of Kenya that mandates all political parties to promote democracy.

Internal party democracy

As the adage goes, `charity begins at home’.

Historically, Kenyan political parties have been poorly organised, poorly resourced and have lacked distinct ideolog-ical grounding. This is evident in the fact that most, if not all, political parties have been active only during election years. The exception in terms of organisation arguably is “KANU”. As the Independence Party KANU was well or-ganised until the onset of the Multiparty Democracy. Thus, political parties have been, but political vehicles used by politicians to win an election and exercise power. Most of political parties have lacked ideological orientation. Furthermore, the overriding (if not sole) purpose of political parties has been to maximise votes, win elections and govern. As would be expected, political parties have been fluid, and in their effort to expand their appeal to a wider variety of groups, their policy orientations are eclectic and have always shifted with the public mood. Additionally, political leaders have developed elaborate patronage linkages with their ethnic communities, which has enabled them to control the parties’ activities and most, or all, important decisions. 3

The clamour to create a path to good governance and development in Kenya necessitates an environment that promotes robust and constructive issue-based politics and that upholds justice and the rule of law. In this sense the Constitution of Kenya 2010 recognised political parties not only as vehicles for political expression and activity, but also as instruments for safeguarding fundamental rights and promoting democratic and good governance ideals. Indeed, the Constitution did not just lay out a framework and the basic requirements of political parties 4 but also enjoined parliament to enact legislation for the regulation and management of political parties 5 , thus, the enactment of the Political Parties Act. 6

The Political Parties Act provides the legal and regulatory framework specific to political party issues and creates an institution specifically responsible for the regulation of political parties. Ideally the Political Parties Act came with overdue mechanisms to ensure internal democracy in political parties. At a minimum, there are four key aspects that each political party in Kenya is required to fulfil: (i) development of a member-centered party document; (ii) establish-ment of an accountable and effective party structures; (iii) the holding of free, fair and peaceful party nominations and elections; and (iv) the establishment of an effective internal mechanism for conflict resolution.

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It is noteworthy that gains have been made today to have Kenyan parties that are marked by strong institutionali-sation. Most parties now have proper party structures and as such there is increased disciplined party membership. Political parties are also now properly funded. Gone are the days when investment in major political parties was by few wealthy individuals who, by virtue of their financial power, controlled them and determined their affairs. The Polit-ical Parties Act seeks to regulate political party finances. It has set up a partially state-funded Political Parties Fund managed and administered by the Registrar of Political Parties. Up to 95% of the fund is distributed proportionately to the total number of votes each party’s parliamentary candidates secured in the preceding general election, with 5% retained for administration. However, if a party does not secure at least 5% of the votes cast in that election or the office bearers exceed the two-thirds gender rule, that party does not qualify to get the funds. 7

The funds are allocated to assist in the promotion of democracy and public participation, where the activities to be funded include: promoting the representation in Parliament and in the county assemblies of women, persons with disabilities, youth, marginalised ethnic groups and other minorities; promoting active participation by individual citizens in political life; covering the election expenses of the political party and the broadcasting of the policies of the political party; and the organisation by the political party of civic education in democracy and other electoral processes, among others. 8

The law provides that political parties also retain the right to receive other funds from membership fees, voluntary contributions from lawful sources, donations, bequests and grants from any other lawful source. It is prohibited for parties to receive funds from non-citizens, foreign governments, inter-governmental organisations and/or non-gov-ernmental organisations. 9 Foreign political parties, or other foreign agencies, that share an ideology with a Kenyan political party may give technical assistance, but this shall not include assets or funds. The Act also limits the level of contribution by citizens or organisations: ‘that no person or organisation shall, in any one year, contribute to a political party an amount, whether in cash or in kind exceeding 5% of the total expenditure of the political party’. 10

Every financial year, a political party is mandated to publish (in at least two newspapers of national circulation) the sources of all funds, liabilities and assets. Further, political parties are also required to make declarations of members, assets and liabilities ninety (90) days before an election. Failure to do so or publishing false statements may result either in a party being deregistered by the Registrar and not receiving any more funds, notwithstanding other of-fences, or penalties envisaged in the Act. 11 The Auditor General also audits all these funds within three months after each financial year end.

Space and latitude has also been accorded that today individual parties’ members are free to provide their opinions even when it may not agree with the views of their fellow party members. In this respect, dialogue is encouraged and more often than not leaders agree to disagree.

In virtually all parties today, party constitutions and manifestoes outline democratic practices and progressive ideals. Not only do parties hold democratic elections for party offices but also nomination exercises for party candidates in every election are done in a democratic manner. Thus, Party elections have become the norm rather than a rarity. It is no longer an activity for the coronation of party leaders and his or her lieutenants. Political parties’ constitutions and structure have also anticipated disputes and provide for a framework for fostering healthy debate and resolving disputes internally. The Political Parties Act also stipulates that intra-party disputes can be appealed to the Political Parties Tribunal once the internal dispute resolution mechanisms have been exhausted.

Role of political parties in Kenya’s governance at all levels of government

The government, of course, is constituted only by the party or parties that control a majority of seats in the legisla-ture, but the losing parties still play - or should play a vital role in the overall governance of the nation. When elected to participate directly in government, party leaders are expected to promote their party’s ideology and carry out its legislative agenda. They do so by taking the appropriate actions according to the Constitution, such as appointing officials, setting up commissions and task forces, and drafting and passing laws. Being in government is a political party’s opportunity to implement its programmes. In some cases, such as coalition governments as was our situation in the period 2008-2013, a political party will support policies of other parties if these ensure that some of its own goals are achieved.

When political parties fail to be elected to form the government, they form the opposition. The role of the opposition parties is to criticize government policy and prevent abuses of power. This role is essential for ensuring good gov-ernance, minimizing mistakes and corruption, and protecting the rights of citizens. Without an effective opposition,

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there is no ongoing check on the power of the government. On the other hand, an active, vigilant opposition keeps the government “on its toes” and not only prevents abuses from arising but also encourages more efficient policy making and implementation.

In this sense thus, the key to both good government and effective opposition is free competition for power. This requires a constitutional and administrative framework that enables competing political parties to freely market their ideas and policies to the people.

However, for political parties to participate effectively in competitive politics they need the internal capacity to bring their ideas and project public attention and influence public opinion. At election time in particular, they require the ma-chinery, infrastructure, skills, and resources to campaign throughout the country and make good use of whatever in-struments are available. Therefore, political parties are also channels of communication which circulate political ideas, principles, and policy options among their members and entire society. As such, they perform a vital educational role in the maintenance and development of democracy in a country. However, if political parties distort their messages, mislead the public, or incite ethnic or racial animosity in order to influence public opinion, they undermine democracy. It would be amiss if I pen off and not mention that political parties also provide the vehicle for the nurturing, develop-ment and recruitment of leaders. The essential function of any party is to recruit men and women of integrity, letters, action and leadership to its fold as members and prepare them for election. This is important as it is these men and women who propagate the party ideologies, discuss the burning issues and offer solutions. It is these leaders who will contest elections and form government or become part of the opposition. Such leaders being drawn from public life are expected to understand the expectations of the common people and formulate public policies accordingly. A party is only as strong as the quality of its members. Where a party is focused on achieving good governance and sets out to seek men and women of similar vision then the country will be in good hands.

1 Austin, R and Tjernström, M (eds), “Funding of Political Parties and Election Campaigns: Handbook Series,” Stockholm: International IDEA (2003).2National Democractic Institute, “Political parties and democracy in theoretical and practical perspectives: Developing party policies,” Washington DC (2013), at 1.3Oloo, A., ‘The Contemporary Opposition in Kenya: Between Internal Traits and State Manipulation’, in Murunga, G and Nasong’o, S (eds) Kenya: The Struggle for Democracy. UK: ZED Books (2007)4Article 91 of the Constitution of Kenya, 2010.5Article 92 of the Constitution of Kenya, 2010.6Act No. 11 of 2011, Laws of Kenya.7Section 25 of the Political Parties Act 8Section 26 of the Political Parties Act.9Section 27 of the Political Parties Act.10Section 28 (2) of the Political Parties Act.11Section 300 0f the Political Parties Act.

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THE ROLE OF LEADERSHIP IN ORGANIZATIONAL EXCELLENCE

CS. Julius MungaiMember, Institute of Certified Public Secretaries of Kenya

THE ROLE OF LEADERSHIP IN ORGANIZATIONAL EXCELLENCE

The contemporary organizations are faced with a myriad of challenges which are exacerbated by the ever changing socioeconomic, human and political landscape. Economic doldrums, corporate collapses, integrity issues, financial challenges, global competition, reputation damage, environmental degradation, changing regulatory environment, and other innumerable internal organizational risks are some of the challenges that organizations have to surmount in a bid to achieve their desired objectives. That notwithstanding, and the fact that corporates have to thrive, businesses have adopted certain mechanisms to mitigate the effects brought about by these threats. Apparently, the extent to which businesses react to the changes in their operating environment largely depends on the strategies that the leadership has put in place as well as the level of their tenacity in the realization of the organization’s vision.

A large proportion of corporates have invested heavily in various risk mitigation strategies, revamped their product and service lines, empowered their staff, developed implementable policies, reengineered their marketing strategies, leveraged on technology and the meagre resources at their disposal, and devised methods and practices aimed at ensuring that they keep afloat in the ever-changing business environment. Investment in the above by the organiza-tional leadership has seen a number of organizations turnaround and surpass their expectations in so far as achieving their objectives is concerned. On the other hand, failure by the leadership to invest in strategies geared towards sustainability of the organization, has led to a steady decline in the performance of a number of organizations some of which are at the verge of collapse while others have already collapsed.

In a nutshell, in spite of other factors that affect business sustainability such as capital, human resources, technology as well as other exogenous factors (natural calamities, changes in the regulatory environment, political unrest) the success or failure of any organization in the world largely depends on its leadership. The tone at the top is critical in the determination of how an organization is managed and controlled. The Board of Directors of any organization remain the key organ of shaping the strategic direction of the organization, formulating strategies aimed at achieving the strategic business objectives and providing oversight in the implementation - by management - of the agreed targets.

The ability of the Board and senior management to harness the synergies within the various subsystems in an orga-nization is of critical importance as far as the achievement of the organization’s mandate is concerned. Ideally, the leadership of the organization should set and communicate its vision to its employees and stakeholders allocate adequate resources towards implementation of the various strategies and follow up to ensure that the set targets are implemented.

John Maxwell, the author of several leadership books observes that everything rises and falls on leadership. Leaders should thus exhibit excellent leadership traits geared towards the success of the organization, improvement of the staff welfare and the environment in which the organization operates. Some of these traits include: being ethical, good listening skills, setting positive examples to others, serving employees and humanity with humility and dignity, working for the interest of the organization, and being just, fair and accountable. Of the above traits, being ethical is regarded as the overarching leadership quality without which the achievement of the objectives of the organization will definitely be in jeopardy.

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Ethical leadership is leadership that is directed by respect for ethical values and beliefs and for the rights and dignity of other people. It is related to concepts such as fairness, justice, trustworthiness, honesty, consideration, and cha-risma. Leaders who exhibit ethical leadership treat all employees with fairness, equity, dignity and are an aspiration to their employees in ensuring the achievement of organizational excellence. Various organizations and governments have developed a number of codes to regulate the conduct of their employees/ Boards /stakeholders and leaders at large. They are cognizant of the fact that for the achievement of the desired vision, may it be in a government institution, public listed company, private entity or a non-governmental organization, ethical leadership is paramount. Apparently, the agency conflict that has bedeviled a number of corporates over a long period of time could well be mitigated through ethical leadership. The agency theory focuses on the relationship between the principal (share-holders/investors) and the agent (executives). The principal is mainly expected to maximize the interests of the shareholders - the value of their investments (profits). This relationship has in a number of instances led to conflicting interests - one pursuing their own interest at the expense of the other.

The principal-agency conflict is to a large extent brought about by unethical behaviors on the part of the execu-tives. In a number of instances, executives tend to pursue their own interest at the expense of the business owners, employees and other key stakeholders. Generally, ethical leadership has been lacking in a number of organizations. This has been the basis for numerous challenges bedeviling the corporate world. A number of executives have been faced with corruption scandals, abuse of office, misappropriation / misallocation of public resources, outright theft, manipulation of financial records, and other related malpractices that are detrimental to the very existence of the organizations.

It thus calls for a balance between managing the relationships between the executives and stakeholders. Ideally, ethical leadership of the organization is critical in mitigating the conflict that would arise between the investors and the executives. The leadership of the organization should adopt the integrated thinking approach to finding solutions to the organizational problems. An effective leader should get the feeling of all the various sub systems of an orga-nization on issues at hand prior to making decisions. Integrative thinking considers the wholesome wellbeing of the organization and corporate executives are expected to take into consideration the expectations of all the stakehold-ers while making decisions. These stakeholders include shareholders (investors), employees, suppliers, customers, communities (the environment in which the business operates), regulators and the government. Understandably, good governance is all encompassing, revolves around management of various stakeholder interests and is live to the fact that the achievement of the corporate objectives is dependent on the interrelationships between the several factors that directly or indirectly influence the performance and existence of the organization.

In a nutshell, the following are key leadership qualities and strategies that leaders in corporates and other settings could adopt in ensuring that organizations excel in their performance - the same could as well reduce the princi-pal-agent conflict;

a) Creating and sustaining an ethical culture within all the functions of the organization. The tone at the top should be the right one;

b) Regulatory compliance – Complying with all laws, regulations, policies, procedures, practices and other gover-nance codes that affect the operations and operating environment of the business;

c) Adoption of the integrated thinking and integrated reporting approach. This is aimed at finding solutions to prob-lems facing the organization and making the necessary disclosures to stakeholders;

d) Undertaking governance and legal audits – to give assurance on the adequacy and effectiveness of the organi-zation’s policies, systems, practices, and processes, as well as gauge on the sustainability of corporations;

e) Developing and nurturing healthy stakeholder relationships;f) Strategy formulation, planning and positioning;g) Adoption of risk based approach to strategy formulation and implementation - Mapping out key risks facing the

organization and identification of appropriate risk mitigation strategies;h) Development of mentorship and coaching programs aimed at knowledge/skill transfer and ensuring sustenance

of institutional memory;i) Engaging in corporate social responsibility activities – as a way of giving back to the community and ensuring

environmental sustainability in which the organization operates;j) Adoption of zero tolerance to corruption and other malpractices that could jeopardize the very existence and

continued performance of the business;k) Ensure stakeholder and public participation more so when projects or policies for the public good are developed

or formulated;l) Enhancing corporate reputation and image;m) Leveraging on the Information and Communication Technology (ICT) to improve organizational efficiency and ef-

fectiveness. For government, this will improve service delivery to the citizens;

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n) Adopt the appropriate ICT technologies and put in place measures to protect the data and transactions from probable ICT risks;

o) Continued staff training and development more so on emerging areas that could affect the performance and sustainability of business;

p) Use of emotional intelligence for effective leadership;q) Undertaking research on various issues – the outcome of which could lead to a change in strategy that could

have an effect on the improved organizational performance; and r) Adopt the best governance principles and practices - in reference to the existing codes and benchmarked prac-

tices in model organizations.

In conclusion, the fact that the environment in which the business operates is dynamic calls for leaders to keep abreast of the emerging trends and developments and adopt the best strategies for the interest of the organization. This will not only ensure that the organization’s mandate is achieved but will go a long way in guaranteeing the sus-tainability of the business, creation of value to shareholders, meeting the expectations of the various stakeholders and reducing the principal-agency conflict. However, above all, ethical leadership remains the overarching principle in ensuring continued organizational excellence and long term sustainability of the business.

NO. DATE EVENT CPD TENTATIVE VENUE

TENTATIVE FEES (Kshs)

M NM

1. APR 11-13 22ND ANNUAL INTERNATIONAL CON-FERENCE

18 Mombasa 45,000 55,000

2. APR 16-20 Governance Auditors Accreditation Course

20 Mombasa 100,000 N/A

3. MAY 4-5 Capacity Building Programme: Minutes Writing

12 Nairobi 10,000 N/A

4. MAY 11 27H ANNUAL GENERAL MEETING 4 Nairobi NIL NIL

5. MAY 23-25 Public Sector Governance Workshop 18 Naivasha 40,000 50,000

6. MAY 31 The Digital Board 6 Thika 10,000 20,000

7. JUN 6 Governance Round Table Breakfast 2 Nairobi 3,000 3,000

8. JUN 11 CS Practitioners’ Seminar 6 Nairobi 10,000 20,000

9. JUN 13-15 Seminar on Governance in Family-Owned Enterprises

18 Kitale 50,000 60,000

10. JUL 11-13 Seminar on Management of Meetings 18 Nairobi 30,000 40,000

12. JUL 26-27 Governance Summit for Churches 12 Nairobi 40,000 50,000

13. AUG 3 25TH ANNUAL DINNER 4 Nairobi 5,000 6,000

14. AUG 8-10 Enterprise Risk Management Seminar 18 Malindi 50,000 60,000

15. AUG 14-17 INTERNATIONAL CONFERENCE ON LEADERSHIP, GOVERNANCE AND INTEGRITY

18 Mauritius 100,000 120,000

16. AUG 27-31 Governance Auditors Accreditation Course

20 Eldoret 100,000 N/A

ICPSK CALENDAR OF EVENTS, YEAR 2018

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17. AUG 31-SEP 1

Capacity Building Programme 12 Nairobi 10,000 N/A

18. SEP 10-12 SACCO Societies Governance Seminar 18 Naivasha 50,000 60,000

19. SEP 13-14 Governance of Unclaimed Financial Assets

12 Nairobi 30,000 40,000

20. SEP 27-28 Educational Institutions Governance Seminar

12 Nairobi 30,000 40,000

21. OCT 3 Governance Round Table Breakfast 2 Nairobi 3,000 3,000

22. OCT 10-12 Retirement Benefits and Estate Manage-ment Governance Seminar

18 Naivasha 50,000 60,000

23. OCT 16 Governance Auditors Refresher Course 6 Nairobi 10,000 20,000

24. OCT 17-18 Seminar on Share Registration, Dividend & ESOPs

12 Machakos 30,000 40,000

25. OCT 19 CS Graduates and New Members Forum 4 Nairobi 3,000 NIL

26. OCT 24-26 Board Induction & Evaluation Seminar 18 Kisumu 40,000 50,000

27. NOV 2 ICPSK COG AWARD GALA NIGHT 4 Nairobi 5,000 6,000

28. NOV 7-9 THE INTERNATIONAL GOVERNANCE SUMMIT

18 Mombasa 50,000 60,000

29. NOV 15-16 Corporate Secretarial Seminar 12 Nairobi 20,000 30,000

30. NOV 30 Post- COG Award Workshop 2 Nairobi NIL NIL

31. DEC 7 Governance and Compliance Clinic 6 Nairobi NIL NIL

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ICPSK, CPS Governance Centre, Upper Hill, Kilimanjaro Road, P.O. Box 46935-00100, Nairobi, Kenya

Tel: +254 20 3597840/2; Mobile: 0734603173, 0770159631E-mail: [email protected] | Website: www.icpsk.com