Kenya’s National Treasury brewed up a storm on April 29, 2025, when Treasury CS John Mbadi published the Accountants Act (Amendment) Bill, 2025, proposing that all practicing accountants secure an annual licence and valid practising certificate or “face up to KES 10 million in fines, three years’ imprisonment, and daily continuing penalties” for non-compliance. Public comments on the Bill are open until May 6, 2025. This follows the Finance Act 2018 amendments—which, from 1 October 2018, made it “an offence to practise as an accountant without a practising certificate and a licence … liable … to a fine not exceeding KES 500 000 or to imprisonment for a period not exceeding three years, or to both,” and, from 17 October 2018, imposed fines up to KES 2 million (plus KES 2 000/day for continuing breaches) for misuse of the “accountant” title .
Why Unlicensed Practice Is in the Crosshairs
Under Section 18 of the 2025 Bill, “any person who contravenes … commits an offence and is liable … to a fine not exceeding KES 10 million, or to imprisonment for a period not exceeding three years, or to both,” with daily fines thereafter for ongoing breaches . CS Mbadi explained that this tightening “align[s] Kenya with IFAC standards and close[s] loopholes that allowed unregistered ‘quacks’ to contribute to the Mumias Sugar, Imperial Bank, and Uchumi Supermarkets audit failures” of 2018 .
“It is an offence to practise as an accountant without these credentials, with penalties that include fines and imprisonment,” the Bill states.
Stakeholder Consultations & Industry “Tea”
On April 30, 2025, ICPAK hosted a physical forum at KICC, Nairobi (“There shall be a physical consultation meeting … on April 30, 2025, at KICC from 8:00 am – 11:00 am and virtual meetings on the above accountants (Amendment) Bill 2025,” Treasury’s invitation reads) and launched parallel virtual sessions—garnering CPD points—for in-depth review of the proposals .
Meanwhile, Big Four audit firms are reportedly revising client agreements to “confirm that every professional on our roster holds a valid licence and practising certificate,” anticipating steep compliance costs ahead.
Enforcement Flashpoints
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Embu Raid (15 August 2024): In Embu town, ICPAK and DCI conducted a surprise operation on Ndienjam Business Consultants. As reported in The Star, “The Institute has a regulatory role in granting practising certificates to members … and licences all accountancy firms in Kenya,” leading to the arrest of proprietor Nicasio Njiru Njue for “masquerading as an accountant” and seizure of computers and client files .
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ICPAK–KRA Tax Collaboration (31 May 2024): The Kenya Revenue Authority announced a strategic partnership with ICPAK “to foster professionalism in tax management, refining tax processes, and fortifying compliance initiatives,” aiming to curb the KES billions lost to fraudulent refund claims.
Built-In Ethics, CPD & Appeals Overhaul
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Ongoing CPD & Ethics: The Bill mandates adherence to the ICPAK Code of Ethics and “requires foreign-qualified accountants to demonstrate local legal knowledge” before registration.
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Independent Disciplinary Panels: Appeals and Disciplinary Committees will include retired judges, Attorney-General nominees, CMA representatives, and advocates to ensure impartial hearings and swift rulings.
Implications & Next Steps
Firms must immediately audit staff credentials, budget for annual licence fees and CPD activities, and strengthen internal compliance checks to avoid crippling fines and reputational fallout. To shape the Bill’s final form, submit detailed comments—citing specific clauses—to the Principal Secretary, National Treasury, by May 6, 2025 at 5:00 pm (“Any comments, inputs or memoranda … may be forwarded to the Principal Secretary … to be received by May 6, 2025 at 5.00 pm,” John Mbadi stated) .
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