Kajiado companies reject bill allocating 1 per cent of their profits to CSR initiatives

MCA Joyce Yiapaso Sunte who sponsored Kajiado County Corporate Social Responsibility Bill, 2024. Photo:Obegi Malack

A section of investors operating in Kajiado County have raised concern over the County Corporate Social Responsibility Bill, 2024 which is now in public participation stage.

The bill wants companies to allocate 1 per cent of their profit to CSR in every financial year. It also details that every company shall reserve to residents of the county a proportionate number of employment in a management and non-management positions in their companies.

“Every company or associated company operating in the county shall constitute a CSR committee of the board consisting of two or more directors, out of which at least one director shall be an independent director,” part of the bill read.

The CSR initiatives the companies are supposed to provide include charitable programmes or projects, school bursaries, provision of water, construction of schools, eradicating extreme hunger and poverty and youth and sports development.

Companies or associated companies that fail to allocate the CSR money are liable on conviction to a fine not exceeding KSh500,000 or imprisonment for a period not exceeding five years or both.

The companies are also to prepare an annual report submitted to the county assembly that contains their annual financial statement and policies, performance in the areas of environmental, social and economic impacts.


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The bill will also create a CSR Authority by county administration that will oversee implementation of CSR projects by companies. The management of the authority shall vest in a board whose chairperson will be appointed by the Governor.

According to an investor who sought anonymity, the bill is will push out investors, adding that CSR is voluntary and should not be regulated.

They said it is the role of Government to provide services and their role is to only pay taxes.

Residents who attended a public participation in Matasia had different opinion on the same. Some said the bill will create opportunities for locals with others said that investors will leave the county.

The bill is sponsored by nominated MCA Joyce Yiapaso Sunte and it is the first of its kind in Kenya.

The MCA said the companies have been exploiting locals and it is time they give back to the community.

Olkeri Ward MCA Stephen Ngatho said the CSR authority will ensure there is accountability in the projects and protection of environment.

Businessman Politician Martin Kimemia called on the committee to specify companies they want to contribute 1 per cent and added that the bill needs more engagement.

Sophie Katampoi raised concern if the CSR will benefit people who live near the companies or will be diverted somewhere else.

The investors will present their petition to the County Assembly this week.

By Obegi Malack


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