CONTENTS - Investing In Africa

CORPORATE GOVERNANCE STATEMENT
CORPORATE GOVERNANCE
KCB is committed to the standards of corporate governance
as set from time to time by the Capital Markets Authority.
The Board of Directors is responsible for the long-term
strategic direction for profitable growth of the Company
whilst being accountable to the shareholders for legal
compliance and maintenance of the highest corporate
governance standards and business ethics.
THE BOARD OF DIRECTORS
The Board is made up of eleven directors out of whom
nine are independent non-executive directors, including
the Chairman. The Directors are provided with appropriate
and timely information so that they can maintain full and
effective control over the strategic financial, operational
and compliance issues.
business. It meets quarterly to advise the business
on all matters pertaining to credit, market, operations,
legal, environmental and other risks.
The Committee had 1 meeting during the year.
(b) Audit and Compliance Committee
The Audit and Compliance Committee meets
quarterly, or as required. In accordance with regulatory
requirement, the Committee comprises non-executive
members of the Board who are independent of the dayto-day
management of the Company’s operations.
The Committee deals with all matters relating to the
financial statements and internal control systems of
the Company including dealing with independent
auditors and Central Bank of Kenya inspectors.
The day-to-day running of the business of the Company is
delegated to the Chief Executive Officer but the Board is
responsible for establishing and maintaining the Company’s
system of internal controls so that the objectives of
profitable growth and shareholder value are realized. The
Board also makes recommendations to the shareholders
on Board succession planning.
BOARD MEETINGS
The Board of Directors meet bi-monthly or as required in
order to monitor the implementation of the Company’s
planned strategy and review it in conjunction with its financial
performance. Specific reviews are also undertaken on
operational issues and future planning. At the end of each
financial year, the Board reviews itself, Board Committees,
Senior Management and CEO against targets agreed to at
the beginning of the year.
The Board held 12 Meetings during the year under review.
The Committee held 4 Meetings during the year under
review.
(c) Credit Committee
This Committee meets twice a month to review the
credit risk profile of the Company and recommend
for Board approval policies and standards for risk
governance and management. The frequency of the
Meetings has ensured that the needs of the Company’s
customers are given timely attention.
The Committee held 18 Meetings during the year
under review.
(d) Human Resources Committee
This Committee meets quarterly to review human
resource policies and make suitable recommendations
to the Board on Senior Management appointments.
BOARD COMMITTEES
The Board has created the following principal committees
which meet regularly under well defined and materially
delegated terms of reference set by the Board.
The Committee met 15 times during the year under
review.
(e) Procurement and Information Technology
Committee
(a)
Risk Management Committee
This Committee was set up in the year to oversee the
Group’s mitigation and appreciation of all risks in the
The Committee meets monthly to review the
information technology and procurement needs of
the Company deemed necessary for efficient service
delivery.
28 KCB ANNUAL REPORT & FINANCIAL STATEMENTS 2007