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SACCO INDUSTRY WATCH

the members as dividends. regions across the country including However, entities are not advised
On the other hand, implementation of the Nairobi, Nanyuki, Nakuru, Kisumu to engage their auditors in the
standard will ensure that SACCOs undertake and Mombasa. Besides the regional implementation of IFRS-9 as
rigorous assessment of loan applications trainings, the Institute has facilitated SGHRVNTKC@LNTMSSNBNM?HBSNE
from a risk perspective before approving several inhouse training for a number interest as they would be auditing
loans to applicants. This will reduce default of SACCOs to build their capacity in the impairment models which they have
rates substantially. @CNOSHNM@MCD?DBSHUDHLOKDLDMS@SHNM developed themselves.
of new standards. ICPAK has also issued
What happens to institutions that technical guidance on new standards Implementation of IFRS-9
don’t adopt IFRS-9 within the HMBKTCHMF@RHLOKH?DC&THC@MBDNM(%12 KDVEHHQDVXFFHVVLQEDQNV
stipulated time? Implementation which was released to the KRZKDVWKHUHFHSWLRQEHHQ
market at the beginning of this year. for SACCOs?
Institutions that don’t adopt IFRS-9 within Other capacity building trainings have
the stipulated time will be deemed to ADDMGDKCENQNSGDQ?M@MBH@KRDBSNQ The reception by SACCOs is quite
be non-compliant with the international players including the banking industry, commendable going by what we
?M@MBH@KQDONQSHMFRS@MC@QCR
3GHRVHKKKD@C the insurance industry as well as the listed have seen from the turnout for
SNPT@KH?B@SHNMNESGDHQQDONQSRA@RDCNE and licensed entities under the Capital the workshops which we have
non-compliance with IFRS-9. Markets Authority. conducted across the country.
However, the rate of implementation
People know ICPAK as the What happens to institutions is picking up at a rather slow pace.
institution that regulates the WKDWHQJDJHDXGLWLQJ? UPVWKDW This is mainly attributed to the
DFFRXQWDQF\SURIHVVLRQLQ.HQ\D WUDLQWKHPRQ,)56WKHQFRPH rather enormous resource outlay
:KDWLV,&3$.GRLQJWRFUHDWH to audit them? required to implement the new
awareness on the new standards? standard. I am optimistic that
TCHS?QLRG@UDCDLNMRSQ@SDCSGD@AHKHSX eventually, all the SACCOs will
ICPAK has partnered with KUSCCO to create to train and transfer accounting skills over have implemented IFRS-9 by the
awareness on the new standards including SGDXD@QR
3GDQDHRMNBNM?HBSHMDMF@FHMF SHLDSGDXOQDO@QDSGD?M@MBH@K
IFRS-9. This is through IFRS-9 workshops the auditors to conduct training as this RS@SDLDMSRENQSGD?M@MBH@KXD@Q
which have been conducted at the various VNTKCMNS@LNTMSSNBNM?HBSNEHMSDQDRS
2018.

Financial reporting workshop for SACCOs in Mt Kenya Region on 6th-7th Sept 2018 held in Nyeri Town.
8| SACCO Star Magazine