Non-financial reporting – Kenya

2.2 Kenya´s Experience with Business and Human Rights [Page 7]

There is need to embed international human rights standards early into the exploration and drilling contracts, impact assessments, due diligence mechanisms and business reporting. This National Action Plan clarifies the Government’s expectation from concerned businesses in this regard.

2.5 Environmental Protection [Pages 10-11]

The Climate Change Act, 2016 establishes the National Climate Change Council, which is mandated to provide guidelines to private entities on their climate change obligations, including their reporting requirements.

Stakeholders’ consultations during the development of this NAP identified the following concerns related to the impacts of businesses on the environment:

• Environmental pollution by business operations, including through discharge of effluent into waterways, air and noise pollution and poor disposal of solid waste, toxic and hazardous substances. These negative impacts compromise the rights to; a clean and healthy environment, health, reasonable standards of sanitation, clean and safe water.
• Loss of biodiversity due to destruction and encroachment on the natural environment for commercial purposes negatively impacts livelihoods, health and access to clean and safe water for present and future generations.

CHAPTER THREE: POLICY ACTIONS

3.1. Pillar 1: The State Duty to Protect [Page 16]

Policy Actions

The Government will:

iv.    Develop guidelines for non-financial reporting under the Companies Act 2015;

3.2. Pillar 2: Corporate Responsibility to Respect Human Rights [Page 18]

The current voluntary initiatives established and adopted by business associations on different human rights issues do not have strict compliance and reporting mechanisms. They therefore fail to offer businesses that have ascribed to them the required guidance and supervision to ensure that their operations respect human rights. There is no mandatory requirement for human rights due diligence. Businesses, including state-owned enterprises, have not embraced the practice of engaging those whose rights are most likely to be impacted by their operations in any human rights due diligence.

Policy Actions

d) Reporting : Enforce the requirement for businesses to prepare non-financial reports in line with the Companies Act, 2015, and encourage proactive disclosure of their impacts on human rights and the mitigation measures they are taking in this regard.

CHAPTER FOUR: IMPLEMENTATION AND MONITORING

ANNEX 1: SUMMARY OF POLICY ACTIONS

ANNEX 2: LEGISLATION PROPOSED FOR ENACTMENT OR AMENDMENT