Introduction
At Safaricom, we are committed to the highest level of corporate governance, which we consider critical to business integrity and to maintaining investors’ trust in the Company. We foster a culture that values and rewards the highest ethical standards and personal and corporate integrity. The Company expects all its directors and employees to act with honesty, integrity and fairness. The Company strives to act in accordance with the laws of Kenya and observes and respects the cultures of the Kenyan people.
The Company has adopted a Code of Conduct, which complies with the highest standards of integrity, honesty and ethics in dealing with all its stakeholders, including directors, managers, employees, customers, suppliers, competitors, shareholders and society at large. The Code also stipulates policies and guidelines regarding the personal conduct of employees. All new staff receive a copy of the Code and a presentation on the Code as part of the induction process.
Board composition
The Company is run through the direction of the Board of Directors, which is responsible for Corporate Governance. The Board consists of six members all of whom are non – executive directors.
The composition and appointment of the Safaricom Board of Directors is governed by the shareholders agreement between the Company’s two shareholders. The Shareholders, in that capacity, elect members of the Board.
Board meetings
Meetings are held quarterly and more frequently if circumstances or decisions require.
Board decisions
The Board has a formal schedule of matters specifically reserved for decisions, including the approval of the Company’s commercial strategy, major capital projects and borrowings, among others. The board delegates responsibility for day-to-day activities to the Chief Executive Officer (CEO)
Audit Committee
The Audit Committee is a sub-committee of the Board of Directors. The Committee meets a minimum of three times a year. The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its responsibility to oversee:
- The company’s risk management process and adequacy of internal controls
- Financial reporting and approval of the annual financial statements and reports
The Committee consists of three non-executive and independent board members. It is chaired by a non-executive director who is not the Chairman of the Board.
Chairman and Chief Executive Officer
The role of Chairman and CEO is not vested in the same person. Nicholas Ng’ang’a took over the role of Chairman on January 16, 2007 from Ndolo Ayah who resigned on the same date. Michael Joseph is the CEO of Safaricom. |
