Bridging the gap between the reality and potential of ESG implementation in Kenyan markets

Abstract

The rapid rise of Environmental, Social and Governance (ESG) considerations highlight a transformative shift taking place in the corporate world. This shift reflects a growing recognition among companies of the importance of integrating sustainability into their day to day operations. This study examines the current state of ESG implementation in Kenyan markets highlighting the gap between theoretical potential and practical application. Despite a growing awareness of ESG principles, several key elements such as market demand and a competitive environment are distinctively lacking. Consequently, the study will conduct an analysis as to whether the Kenyan market creates an environment to allow for the successful integration of ESG. To provide an illustration of this, the study will additionally evaluate the historical foundations of ESG practices, discuss examples of countries of where ESG is thriving and the existing legal framework of ESG practices in Kenya using the desktop approach.