Political stand-off will lead to job cuts: ICPAK vice-chairperson

Murang'a town businesspeople held a peaceful demonstration against NASA leadership on September 27, 2017. They said the opposition's protests hurt the economy. On Wednesday, ICPAK vice-chairperson warned of job cuts if the political stand-off is not resolved. PHOTO | MARTIN MWAURA | NATION MEDIA GROUP

By  MATHIAS RINGA

What you need to know:

  • Employers will fire workers to reduce operation costs due to a slump in economic growth.

  • Many businesses are grappling with a decline in trade.

  • Leaders should ensure peaceful demonstrations to prevent losses.

Experts have warned of an economic meltdown and job cuts if the repeat presidential election stand-off is not urgently addressed.

Ms Rose Mwaura, the national vice-chairperson of the Institute of Certified Public Accountants of Kenya (ICPAK), on Wednesday urged President Uhuru Kenyatta and National Super Alliance (Nasa) flagbearer Raila Odinga to put national interests above their partisan interests.

JOB CUTS

Also Read

She said the election deadlock was impacting negatively on the economy and it might lead to job cuts to reduce operation costs.

“We are concerned that the continued political uncertainty is hurting our economy. The prolonged political activities have seen Gross Domestic Product growth slow down to five per cent in recent months,” Ms Mwaura added.

Addressing a press conference at PrideInn Paradise Beach Resort in Mombasa, the ICPAK official said that according to the 2017 budget review and outlook paper, the Kenya Revenue Authority is missing revenue collection target by Sh2.6 billion per month because of the poll stand-off.

“The private sector entities are grappling with loss of business opportunities,” she warned.

SHUN CHAOS

Ms Mwaura asked political leaders and members of the public to shun violence so that peace prevails.

The October 26 presidential re-run, she added, was in limbo following the withdrawal of Mr Odinga’s candidature.

On the ongoing Nasa demonstrations, the ICPAK official urged political leaders to ensure their supporters hold peaceful protests.

“The political leaders should consider putting Kenya first through adopting a bipartisan approach in resolving the current electoral quagmire,” she said.

HIRE

Meanwhile, Ms Mwaura urged governors to hire ICPAK members for accounting jobs so that county resources are well-managed.

Counties should also appoint qualified accountants for the positions of finance executive, chief officer in charge of finance, chairman of audit committee and county budget and economic forums.

“It is prudent to ensure that county audit committees have at least one ICPAK member with demonstrated understanding of audit, risk management, control and extensive knowledge in accounting, with at least five years of experience,” she added.

REGISTERED

In accordance with Mwongozo – code of governance – Ms Mwaura said, the chairmen of audit committees in all public sector institutions must be registered members of the professional accounting organisation.

“We advise governors to seek reference from the Institute to verify the authenticity of their appointees’ CPA qualifications and professional membership before they are sworn into office,” she added.

In the headlines