Changes in legislation impact the accounting industry in Ghana and Kenya

8th June 2021

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In the latest edition of the International Accounting Bulletin (IAB), member firms MGI O.A.K Chartered Accountants, in Ghana, and MGI Alekim LLP, in Kenya, contribute to discussions about recent changes in legislation in their respective accounting industries.

Investor confidence in Ghana 

Recently, there has been much discussion around perceived audit quality in Ghana, with many organisations reluctant to have their accounts audited.

To counter this, the Institute of Chartered Accountants (ICAG) has improved its quality monitoring, review, and compliance processes and enforced continuous professional development programmes to ensure members are aware of technical and corporate developments. The new Companies Act 2019 now requires mandatory rotation of auditors every six years for companies registered under the law, regardless of size or public interest level.

There continues to be a low level of confidence in the government’s commitment to tackling corruption within the public sector. Reports from the auditor general led to charges against government officials, but these were reversed when challenged in court.

“The gains made by appointing the special prosecutor and strengthening the audit regime, were unfortunately eroded with the resignation of the special prosecutor, alongside the government’s directive to the auditor general to take compulsory retirement."

Timothy Osei, Partner at MGI O.A.K Chartered Accountants

Tightening of licensing framework in Kenya

In Kenya, the recent tightening of the licensing framework is creating a more dynamic accounting market. Felix Kimoli, Partner at MGI Alekim, notes that Government efforts to widen the tax base, and the introduction of a new licensing framework, have elevated Kenya to one of the most dynamic accounting markets in Africa.

From 1 January this year, the Institute of Certified Public Accountants of Kenya (ICPAK) issued four categories of practicing certificates, which include:

  • Composite licence covering all accountancy services
  • Audit and assurance licence for auditors
  • Taxation practitioners licence for tax practitioners
  • Accounting controls and consultants licence.

This move was in response to requests by members for issuance of multiple licences for practice in different capacities and has given the institute a wide pool of professionals to keep an eye on.

“It has given the market competence and impetus and clients have viewed it positively as they are being served by professionals who are regulated, having the institute as their reference point. Clients are also able to confirm independently the status of the practitioner before they engage them.”

Felix Kimoli, at Partner MGI Alekim

To read the full articles in May’s edition of the IAB, CLICK HERE.

MGI Worldwide CPAAI continues to rank highly in Kenya, Ghana and Nigeria 

We are happy to announce that in the latest accounting network and association rankings for Kenya, Ghana, and Nigeria, MGI Worldwide CPPAI ranks in 6th place in terms of fee data.

MGI Worldwide CPAAI would like to congratulate our African member firms who are responsible for helping achieve these fantastic results.

For more information, visit MGI Alekim profile page and website, and the MGI O.A.K Chartered Accountants profile page and website.

MGI Worldwide with CPAAI is a top 20 ranked global accounting network and association with almost 10,000 professionals, accountants and tax experts in some 460 locations in almost 100 countries around the world.

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