Unregistered Accountants To Be Heavily Fined or Jailed Following Law Enactment

Kenyans posing as accountants without the necessary certificates now stand to be jailed or heavily fined following the enactment of a law regulating the practice.

The new law according to the Institute of Certified Public Accountants of Kenya (ICPAK) will free the industry of swindlers and is a result of amendments made to the Accountants Act Number 15, 2008.

The amendments became enacted with the signing into law of the Finance Act 2018. The new law is aimed at strengthening the accounting profession and enabling it to be a tool that Kenyans can rely on to fight corruption and public funds wastage.

ICPAK has sworn to be firm in fighting rogue practitioners adding that they have given the profession a bad image.

“There has been a rampant abuse of the designation by thousands of practitioners despite the fact that Kenya has only 22,000 duly qualified and registered accountants,” said the ICPAK chief executive Edwin Makori.

“There are only 22,000 persons recognized in law as professionals in accountancy. The rest performing roles of accountancy should not be referred to as accountants,” Makori added saying that the Finance Act 2018 had amended the definition of an “accountant” which made it clear on who can use the designation.

“The law now provides that an “accountant” is a person registered under Section 24 of the Accountants Act, in line with expertise achieved through formal education and practical experience,” Makori explained.

Parliament, in the law amendment, increased penalties for abuse or wrongful use of the title, to include a fine not more than 2 million shillings, and, in the case of a continuing offence, a further fine not exceeding 2,000 shillings for each day the offence continues.

Makori sent a warning to employers and the public not to hire unregistered accountants or allow unqualified people to use the title.