Last reviewed: November 2026. This brief summarises the sustainability, ESG disclosure and corporate governance landscape in Kenya for boards, sustainability teams and investor-relations professionals. It is an orientation guide, not legal advice.
Rules, thresholds and deadlines change frequently, and several frameworks described here were being revised at the time of writing. Always confirm the current position with the official source (regulator, exchange or ministry) before relying on any requirement.
Overview
Kenya is East Africa's leading financial centre and one of Africa's most active jurisdictions in sustainability regulation. Its power sector relies heavily on geothermal, hydro and wind, and the country has positioned itself as a hub for climate finance and carbon markets. Listed-company ESG reporting is guided by the Nairobi Securities Exchange, while the accountancy body ICPAK has set a roadmap for the ISSB standards and the Central Bank of Kenya has introduced climate-risk and green finance rules for banks.
Regulators and stock exchange
- Capital Markets Authority (CMA) – regulates the capital market and issues the governance code for issuers.
- Nairobi Securities Exchange (NSE) – operates the equity and debt markets and issued the ESG Disclosures Guidance Manual.
- Central Bank of Kenya (CBK) – regulates banks and leads on climate-related risk and the green finance taxonomy.
- ICPAK – the Institute of Certified Public Accountants of Kenya, which adopts IFRS and IFRS Sustainability Disclosure Standards for use in Kenya.
ESG / sustainability disclosure requirements
The NSE launched its ESG Disclosures Guidance Manual in November 2021, developed in collaboration with GRI. It sets out ESG topics and metrics and expects listed companies to report on ESG performance at least annually. Early commentary described a mandatory reporting timeline, but compliance has been uneven and later sources describe the manual as influential guidance; check the NSE's current listing rules.
ICPAK has adopted IFRS S1 and S2 and published a national adoption roadmap. Voluntary application has been encouraged since 2024, with mandatory application phased in, starting with public interest entities. Sources have reported different first mandatory periods (2026, 2027 and 2028), so confirm the current ICPAK advisory before planning.
Corporate governance code
The CMA's Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 applies to listed and other public issuers on an apply-or-explain basis, with certain minimum mandatory provisions. It covers board operations and control, rights of shareholders, stakeholder relations, ethics and social responsibility, accountability, risk management and internal control, and transparency and disclosure. Issuers report on application in their annual reports, and the CMA assesses governance practices. Banks are also subject to CBK prudential guidelines on corporate governance.
Climate commitments
- Updated NDC (December 2020): reduce greenhouse gas emissions by 32% by 2030 relative to a business-as-usual scenario, largely conditional on international support.
- NDC 3.0 (April 2025): a 35% reduction by 2035 relative to business-as-usual, with around a fifth of the effort unconditional.
- Law: the Climate Change Act 2016, amended in 2023 to establish a framework for carbon markets.
- Net zero: no legislated national net-zero target year was identified for this brief.
Sustainable finance
- CBK climate risk: the CBK issued Guidance on Climate-Related Risk Management for banks in 2021, and in 2025 released a Kenya Green Finance Taxonomy and a climate risk disclosure framework for the banking sector.
- Green bonds: the CMA has green bond rules, and the Kenya Green Bond Programme has supported corporate issuance, including a certified corporate green bond issued by Acorn and listed on the NSE.
- Carbon markets: the 2023 amendments to the Climate Change Act and related regulations govern carbon projects and benefit-sharing.
Investor relations practice
Leading NSE issuers – banks, telecoms and consumer companies – hold results briefings, publish integrated or sustainability reports and engage with foreign portfolio investors. Kenya has a strong integrated reporting culture, encouraged by ICPAK reporting awards. IR teams should prepare for investor questions on the ISSB transition, climate risk in loan books, governance practices assessed by the CMA and dividend sustainability.
What to watch
- The confirmed first mandatory reporting period for IFRS S1/S2 for public interest entities.
- NSE enforcement or updates of the ESG Disclosures Guidance Manual.
- Banking sector use of the Green Finance Taxonomy and climate risk disclosures.
- Carbon market regulations and Article 6 transactions.
Official sources
- Capital Markets Authority – Corporate governance of issuers
- Nairobi Securities Exchange
- NSE ESG Disclosures Guidance Manual (PDF)
- Central Bank of Kenya – Legislation and guidelines
- ICPAK
Last reviewed: November 2026. Corprise Knowledge Hub briefs are updated periodically; if you notice a change in the rules, check the official source first.
