Report highlights glaring gender gap in boards of banks, insurance firms

Banks are sidelining women from decision-making organs, according to a new finding that could revive the debate on gender balance in boards of companies.

Female directors make up only 12 per cent of boards in the banking sector, a report by the Institute of Directors Kenya (IOD) has shown, a representation that is about a third of the constitutional minimum of 33 per cent.

The report titled Women’s Representation on Boards found State-owned enterprises, at 26 per cent, were actually ahead of private firms in trying to effect gender balance.

“Women’s varied experiences often bring a different voice to the organisation. A key benefit of including women in decision making is heightened innovation, as women on boards have been found to foster creativity and innovation,” said John Luusa, the chairman of IOD.

Banks were joined at the bottom in women representation on boards by insurance companies at 15 per cent.

At the top were professional associations and micro-finance institutions, which were tied at 26 per cent.

The low representation of women on boards has long been attributed to gender differences, concerns over work-life balance and board nomination processes. Mr Luusa said IOD was working to achieve the constitutional requirement of gender equity in all elective and appointive positions.

“We are prepared to facilitate this process by sharing with the Government our database of qualified women trained in corporate governance and in good professional standing for consideration for appointment to various boards, commissions and public offices,” he said.

The country’s development map, Vision 2030, also recognises women’s inclusion in leadership positions, and especially on the boards of institutions, as critical to achieving national goals.