Industry leaders push to accelerate social governance in brokerage

 

Panelists David Okumu and Edwin Ongera from Deloitte and the CMA respectively.. [Brian Ngugi, Standard]

Industry regulators and market players are pushing for faster integration of environmental, social and governance (ESG) principles across Kenya's brokerage and investment banking sectors, warning that failure to adapt could undermine competitiveness as global capital shifts toward sustainable investments.

The Chartered Institute for Securities and Investment (CISI), in partnership with the Capital Markets Authority (CMA), the Kenya Association of Stockbrokers and Investment Banks (KASIB), and Deloitte, convened a high-level forum at the Nairobi Securities Exchange (NSE) to examine how ESG considerations are reshaping investment practices, advisory services, regulatory expectations, and business models.

As global capital increasingly flows toward sustainable and responsible investments, the forum highlighted the urgent need for financial intermediaries to strengthen their ESG capacity to remain competitive. For stockbrokers and investment banks, embedding ESG considerations is no longer optional—it is essential to enhancing the quality of investment advisory services, strengthening investor confidence, and positioning firms to attract sustainable domestic and international capital.

Recognising this shift, CISI has developed a comprehensive Sustainable and Responsible Finance learning pathway designed to equip financial services professionals with the expertise required to address climate-related risks, support the transition to a low-carbon economy, and capitalise on emerging sustainable finance opportunities.

CMA Chief Executive Officer Wyckliffe Shamiah emphasised the regulatory imperative of ESG integration.

"The integration of ESG principles is essential to safeguard market integrity and enhance transparency through sustainability reporting. The Authority encourages all capital markets intermediaries to strengthen their ESG capacity, leverage modern technology and implement robust ESG policies to support sustainable and resilient market growth," Shamiah said.

From a market perspective, KASIB CEO Willie Njoroge underscored the strategic importance of ESG adoption in maintaining sector competitiveness.

"Sustainability is increasingly influencing capital allocation, and KASIB is committed to strengthening member firms' capacity to integrate ESG into advisory and risk decisions, thereby enhancing investor confidence and the long-term resilience of Kenya's capital markets," Njoroge said.

John Okumu, Director and Valuation and Modelling Leader at Deloitte East Africa, noted that sustainability considerations are rapidly becoming central to investment decision-making.

"Sustainable finance is no longer just a compliance exercise but a revenue opportunity. Empirical evidence consistently shows that high ESG performers tend to achieve better financial outcomes, including higher firm value, profitability, and resilience," Okumu said.

Kimacia Gitau, CISI East Africa Lead Representative, highlighted the role of professional education in supporting this transition.

"As global markets prioritise sustainability, ESG competence is now essential for competitiveness and stability, and CISI's sustainable finance qualifications equip professionals with the expertise needed to thrive in this evolving environment," Gitau said.

The forum marks a significant step in Kenya's efforts to align its capital markets with global sustainability trends, ensuring that local financial intermediaries remain competitive in an increasingly ESG-focused investment landscape.