Boardroom Drama

The Nairobi Stock Exchange has a new Boss, Mr. Chris Mwebesa, replacing Mr Kibuga Kariithi. At the time of his appointment, he was serving as a non-executive director on the NSE board. A statement by the NSE said the post fell vacant after Mr Kariithi decided not to renew his contract, which expired on December 31, 2004.

Meanwhile, the former head of the KTDA has called for more professional to be added to boards to improve their performance and efficiency. Many boards in Kenya, especially the public sector, are not up to the job, with members mostly concerned with allowances and perks. They are ill-informed about the histories of their companies, especially in transitional times.

Proving this point, the board of KMC is refusing, to pay a disputed debt. The KMC MD, Mr. Masika, said he was not opposed to the Government paying the debt provided his board was kept out of it, and that KMC did not have a board of directors at the time National Bank is said to have extended Sh120 million to it after a request by the Government in 1991. “The Kenya Meat Commission board was dissolved in 1987 and the plant closed down. We have no official records to show who borrowed this money or whether it ever reached KMC,” he said.

Despite this, Treasury went ahead and allocated Sh 3 billion to the ministry for KMC to clear the debt.