The Kenya Directorate of Criminal Investigations (DCI) issued a February 28, 2019, press release naming 107 companies and their directors connected to the Sh63 billion Arror and Kimwarer multipurpose dam projects. The document stated these entities "are believed to be connected with or have information which will assist in ongoing investigations into fraudulent construction of the dams." The disclosure sparked immediate media attention, with the list of directors resembling a "who's who" in Kenyan corporate circles.
The article highlights tensions between corporate governance structures, noting that while chief executives oversee daily operations, boards bear ultimate accountability for company actions. However, the DCI's public shaming strategy targeted directors rather than executives, raising questions about the investigative approach. "A strong message was being sent in that press release," the author observed, emphasizing the use of social pressure to compel compliance.
Key concerns include the inclusion of directors who had resigned years prior, suggesting potential overreach. The piece warns that non-executive directors must ensure their resignations are officially recorded at the Companies Registry to avoid unintended legal exposure. It also predicts broader implications for corporate risk management, citing parallels to anti-money laundering measures following previous corruption scandals.
The DCI requested specific documentation from the listed companies, including quotations, invoices, and delivery notes. This triggered urgent internal inquiries among corporate leaders, as directors typically lack direct access to operational records maintained by management.
