Kenyan accountancy firms eye growth amid reforms and economic uncertainty
"A raft of reforms are opening up new markets for Kenyan accounting firms. But while they might find themselves in demand, clients are struggling with cash flow problems and anxiety about the economy," states the IAB in its latest bulletin.
Featured in the IAB's latest edition, the Kenya Country Report takes an indepth look at the latest trends in the country's accounting industry - Partner Felix Kimoli, from member firm MGI Alekim takes part in the discussion.
Reforms reshape the regulatory landscape
Recent tax reforms, including changes to VAT, income tax and digital taxation, are driving demand for compliance services. The upcoming shift to the Public Benefits Organisation (PBO) Act in 2025 adds new reporting duties for not-for-profits, while new banking licences and tighter audit rules point to further regulatory change.
Kenya’s phased adoption of IFRS sustainability standards is pushing accountants into key roles in ESG reporting. At the same time, the rise of cloud accounting and AI is transforming service delivery and becoming essential for meeting client demand.
Firms juggle demand, technology and cost pressures
Despite increased demand, fee growth is limited by client cash flow problems and strong pricing competition.
“Firms are also under financial strain as they are investing in advanced technologies such as AI, machine learning, and blockchain, which requires significant capital,” says Felix. “Smaller firms may struggle to absorb these costs, potentially affecting their pricing models and competitiveness.”
Compliance requirements are also adding to operational overheads. “These compliance costs potentially strain the overheads of accounting firms, eventually influencing their fee structures,” notes Felix.
At the same time, firms are struggling to recruit skilled professionals, especially those with experience in new technologies. “To bridge the skills gap, accounting firms and professional bodies like the Institute of Certified Public Accountants of Kenya (ICPAK) are investing in continuous professional development programs,” says Felix.
He notes that flexible work enabled by cloud tools is improving retention: “The profession, unlike before, is focusing on delivery as opposed to presence. This is where appropriate tools to monitor efficiency become handy.”
To read the full article in the April edition of the IAB, members can click HERE (login to the MGI Worldwide member portal will be required).
For more information, visit the MGI Alekim profile page or website.
MGI Worldwide is a top 20 ranked global accounting network and association with over 8,800 professionals, accountants and tax experts in some 440 locations in almost 100 countries around the world.