Boards across the world, including in Kenya, are grappling with unprecedented challenges in an increasingly volatile, uncertain, complex, and ambiguous (VUCA) environment. Their top priority has become ensuring organizational resilience and stability, while also seizing opportunities that emerge from crises.
Against a backdrop of geopolitical tensions, economic turbulence, technological disruptions, and regulatory shifts, corporate governance agendas are being reshaped at record speed.
The global landscape remains tense, with geopolitical flashpoints such as the Israel-Iran conflict and the Russia-Ukraine war fueling instability. Supply chain disruptions continue to put upward pressure on oil prices, while imported inflation has been exacerbated by U.S. tariff and trade policy shifts. This uncertainty has triggered selloffs in U.S. dollar denominated bonds and equities, leading to a weaker dollar and further market volatility.
In today’s VUCA world, the ability of corporate boards to balance risk oversight with strategic foresight will determine which organizations not only survive but thrive.
Monetary policy in advanced economies adds another layer of complexity. The U.S. Federal Reserve has paused its federal funds rate at a high 4.25 – 4.5 percent, keeping the Secured Overnight Financing Rate (SOFR) elevated. For governments, banks, and businesses, this means dollar-denominated borrowing remains expensive, effectively shutting out many emerging markets and developing economies (EMDEs) from global debt markets.
For Africa and other EMDEs, a rapidly growing youth population is another critical factor shaping board agendas. Leaders are confronted with a key question: will this demographic bulge deliver a dividend of skilled labour and mass consumption, or will it turn into a demographic curse, heightening risks of social unrest similar to the Arab Spring?
Adding to the complexity is the Fourth Industrial Revolution. Technologies such as artificial intelligence (AI), machine learning, blockchain, robotics, the Internet of Things, 3D printing, quantum computing, and immersive metaverse platforms are reshaping industries at lightning speed. For boards, the challenge lies in harnessing these technologies for growth and mitigating their disruptive effects.
At the same time, the global push toward net-zero carbon emissions by 2050 has triggered intense competition for critical minerals and materials. Governments and companies alike view access to these resources as a strategic pathway to economic and geopolitical power.
Meanwhile, legal and regulatory innovations such as Central Bank Digital Currencies are redefining the future of money, while frameworks like the EU’s Digital Operational Resilience Act may follow the precedent of the General Data Protection Regulation (GDPR) in becoming globally influential.
What should be on the agenda?
In response to these fast-evolving conditions, global advisory firms have outlined priority agendas for corporate boards. The PwC Executive Leadership Hub identifies five key focus areas: strengthening board effectiveness through better compositions and annual evaluations; investing in enterprise risk management to build resilience across financial, operational, technological, organizational, and reputational dimensions; maximizing stakeholder value amid growing shareholder activism; overseeing ethical adoption of emerging technologies such as AI; and embedding sustainability and ESG oversight into corporate strategy.
KPMG’s Board Leadership Centre, meanwhile, highlights nine pressing issues. These include continuous oversight of risks and opportunities arising from global disruptions, reassessing corporate strategy in light of government policy shifts, and closely monitoring GenAI strategy and governance.
Boards are also tasked with enhancing data and cybersecurity frameworks, advancing ESG disclosures, ensuring strong CEO succession pipelines, fostering corporate culture, strengthening enterprise risk oversight, and diversifying board composition across skills, experience, gender, and ethnicity.
Deloitte’s Centre for Board Effectiveness narrows down six top priorities, urging boards to actively manage geopolitical risks, prepare for evolving regulatory frameworks, refresh enterprise risk systems, strengthen oversight of cybersecurity and GenAI technologies, plan leadership succession effectively, and maintain close scrutiny of corporate strategy execution.
Boards in Kenya and across the globe can no longer rely on traditional governance playbooks.
Odgers Leadership Insights echoes these themes, setting out nine areas of focus. Boards are urged to develop clear AI strategies, build resilience to horizon risks, attract foreign investors, and adapt to protectionist trade policies.
At the same time, they must align ESG initiatives with investor expectations, bridge skill gaps in areas like climate change and AI, enhance board effectiveness through diversity of thought, and address the global leadership talent shortage by building strong succession pipelines.
Ultimately, the message is clear: boards in Kenya and across the globe can no longer rely on traditional governance playbooks. They must anticipate disruptions, adapt to shifting external conditions, and embrace innovation, all while ensuring resilience and sustainability.
In today’s VUCA world, the ability of corporate boards to balance risk oversight with strategic foresight will determine which organizations not only survive but thrive.
Nicasio Karani is a banking and macroeconomics specialist, currently serving as General Manager- Special Projects and Bank Economist at Equity Group Holdings PLC.
*The view expressed here are the author’s own and do not necessarily reflect the editorial stance of The Kenyan Wall Street.