With many Kenyan businesses struggling to keep pace with emerging Environmental, Social and Governance (ESG) requirements, Global Compact Network Kenya, in partnership with Danish Industry, hosted an ESG Roundtable to address critical capacity gaps and help local companies navigate the complex ESG landscape.
Under the theme Exploring Challenges and Opportunities for Kenyan Companies, the forum aimed to support companies in understanding compliance obligations, particularly in light of international sustainability demands.
A report commissioned by Danish Industry, titled ESG in Emerging Markets, highlights the growing impact of EU sustainability regulations on Kenyan companies, underscoring the need for targeted interventions to help them meet sustainability demands.
Speaking at the event, Stephen Kimenye, Program Manager at Global Compact Network Kenya, highlighted the pressing challenges Kenyan businesses face on the road to ESG compliance. He pointed out that many local companies lack technical expertise in ESG matters and face difficulties aligning local sustainability priorities with international standards. "This roundtable comes at an opportune time to foster stronger partnerships to support ESG compliance, build businesses' understanding of ESG principles and their relevance to Kenyan markets," Kimenye said.
Enock Nyachae, Danish Industry’s East Africa Sustainability and Project Manager, emphasized the risks posed by low awareness of ESG principles and the potential impacts of international regulations, such as the European Union's sustainability legislation. He called for increased efforts to raise awareness and understanding of ESG issues among Kenyan businesses, particularly regarding EU sustainability laws, to reduce missed business opportunities.
The forum featured case study presentations from representatives of Sasini PLC, HACO Industries, and KAPA Oil Refineries, who shared insights on how they are navigating the ESG landscape.
Finally, participants agreed to deepen their engagement come next year and ensure that Kenyan businesses thrive in the evolving global marketplace to pave the way for a sustainable and inclusive future.