KAMPALA, Uganda — Corporate governance is often dismissed as complex jargon, but its core principles are straightforward: who holds power, who provides oversight and what consequences follow the abuse of leadership.
The practical realities of governance involve controlling finances, approving major decisions and stopping corruption before it becomes systemic. Recent governance reviews in Uganda have highlighted institutions such as the Uganda National Bureau of Standards, the Uganda Electricity Transmission Company Limited and the Uganda Investment Authority as examples where oversight failures became public concerns.
As global expectations for accountability rise, governance frameworks like the King Codes have transitioned from optional documents to essential survival tools. Developed in South Africa starting in 1992 by Mervyn King and the King Committee, these codes are now influential across Africa, including in Uganda.
Historical data shows a consistent pattern where corporate disasters typically begin with governance failures. The 2008 global financial crisis was driven by bank boards that allowed managers to take excessive risks for personal bonuses, leaving shareholders and taxpayers to absorb the eventual losses.
Uganda has faced similar challenges. The 2016 collapse of Crane Bank, once a leading commercial institution, demonstrated how weak board oversight can lead to closure and shake public confidence. Even the Bank of Uganda has faced scrutiny following reports of a 62 billion shilling deficit and high-level resignations.
The evolution of the King Codes reflects changing priorities in leadership. King I, released in 1994, focused on internal controls and limiting executive excess, emphasizing that directors must be independent and willing to challenge management rather than acting as rubber stamps. King II followed in 2002 and introduced the triple bottom line of people, planet and profit. This recognized that ignoring labour conditions and environmental impact creates long-term legal and reputational risks. King III in 2009 advanced the concept of integrated reporting to provide a holistic view of organisational health.
Local failures continue to underscore these lessons. The Uganda Registration Services Bureau frequently intervenes in disputes involving forged signatures and illegal board meetings. Meanwhile, tragedies such as the 2024 Kiteezi landfill collapse and various building failures in Kampala serve as reminders that profit-first decisions can have deadly consequences.
Globally, disasters like the 2013 Rana Plaza collapse in Bangladesh, where more than 1,100 workers died in a cracked factory, have forced corporations to move toward stakeholder governance to ensure long-term survival.
