Companies investing in Kajiado County are now required to actively contribute to the social and economic well-being of residents after Kajiado Governor Joseph ole Lenku signed into law The Kajiado County Corporate Social Responsibility Bill 2024.
The bill, which was sponsored by nominated Member of County Assembly (MCA) Joyce Sunte, provides for companies to develop self-regulatory practices and management systems that foster relationships of confidence and trust between the companies and the communities in the county.
In addition, the law provides for companies to contribute to the economic, social and environmental progress with a view to achieving development in the county.
The bill also provides for companies to encourage local development through close cooperation with local communities of the county and to solve environmental and social problems occasioned by the companies in the county in addition to respecting the human rights of the communities in the county.
While signing the bill in his office, Governor Lenku said that the bill is a pivotal step in fostering strong partnerships between the government, the private sector, and the local community.
He commended Sunte for sponsoring the bill, adding that it paves the way for an inclusive, sustainable and future-focused development.
Speaking after the bill was signed into law, Sunte said that Corporate Social Responsibility (CSR) is not just a moral obligation, but it is a catalyst for equitable development.
“By institutionalising CSR, we can enhance infrastructure, improve education, provide better healthcare and protect our environment. As Kajiado County grows as a hub for investment, we must ensure that this growth translates into tangible benefits for our residents,” said Hon. Sunte.
Under the bill, every company or associated company operating in the county shall constitute a CSR committee, which will formulate and recommend a CSR policy which shall indicate the activities to be undertaken by the company.
The CSR policies include school bursaries, charitable programmes or projects, water provision, construction of schools, eradicating extreme hunger and poverty, youth and sports development, promotion of culture and ensuring environmental sustainability.
Other CSR policies are social business projects, employment-enhancing skills, reducing child mortality and improving maternal health in addition to combating Human Immunodeficiency Virus (HIV), acquired immunodeficiency syndrome, malaria and other diseases.
To ensure implementation of the above, the board of every company is required to ensure that the company spends in every financial year at least one per cent of the average net profits of the company made during the previous financial year.
A company which fails to spend such amounts is required to specify the reasons for not spending. Failure to which, they will have committed an offense and, once convicted, are liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a period not exceeding five years or both.
The Kajiado County Corporate Social Responsibility Authority, which is yet to be established, will receive reports from companies on their contributions to CSR and submit the report to the Kajiado County Assembly.
The authority will also carry out investigations and audits of companies on matters related to CSR and carry out awareness programmes within communities in the county on matters related to CSR.
By Diana Meneto