Talk of company board members in Kenya, and the image that comes to mind is of grey-haired individuals, most likely male.
While the average age of CEOs and boards directors has come down over the years, representation of the younger people is still low considering Kenya’s demographic balance.
A board diversity report published by Nairobi Securities Exchange (NSE) #ticker:NSE , Kenya Institute of Management (KIM) and Kenya Private Sector Alliance (Kepsa), and New Faces New Voices ties this to among others a lack of talent within the younger people and age bias.
The report, titled ‘KIM Board Diversity & Inclusion Report 2021’, reveals that the average age of boards in Kenya was 47.6 years as of March this year, an improvement from 55.8 years in 2017.
The report shows young executives aged below 35 account for only four percent of boardroom seats against their older counterparts aged between 46-55, who at 57 percent are the majority.
Executives aged 55 on average constituted 13 percent of all appointees while those aged between 36-45 constitute 26 percent.
The survey of age diversity was carried out on 345 public listed and private companies.
One of the main stumbling blocks for young people seeking executive and board positions is the lack of adequate experience that companies demand for these positions.
“Although there is plenty of progress in gender diversity and inclusion, unfortunately, it has remained challenging to break down roadblocks of age bias and prejudice in board recruitment,” the KIM report stated.
Most firms have an older average age of directors who are deemed to contribute to better financial performance, bring experience, institutional memory and build stronger relationships with stakeholders.
A few years ago, there was a mini evolution that saw several listed forms tap young professionals aged below 40 to corner offices, but that trend has markedly slowed down.For instance, Centum chief executive James Mworia made it to the corner office at 36 in 2014 while KCB Group chief executive Joshua Oigara had been appointed at 37 in 2012. Age limit Despite the progression that has been made, this profile is seen dwindling due to a corporate policy that allows chief executives and board directors of NSE-listed firms to serve until 70 years — age limit set by the Capital Markets Authority.Corporate heads acknowledge that companies could be missing out on new markets by ignoring younger people on boards because they hold different perspectives that are shaped by technological innovations compared to […]