For decades, many businesses across Kenya and the broader East African region viewed financial statements primarily through the lens of taxation and statutory obligations. But according to Asif Chaudhry, Partner at PKF in Eastern Africa, the economic shocks of the last five years have fundamentally altered that mind-set.
“Covid-19 was a wake-up call for many businesses,” says Chaudhry, a Fellow Certified Public Accountant (FCPA), Fellow of the Association of Chartered Certified Accountants (FCCA), Chartered Accountant (ACA UK), and member of the ICPAK Professional Standards Committee.
“Businesses realised financial reporting was not just about numbers and taxation anymore, but all to do with understanding the real health of your business, understanding risks, planning ahead, and convincing investors and lenders that you are sustainable.”
Chaudhry, who has more than 25 years’ experience in professional services, including eight years in London, believes East Africa has made remarkable progress in adopting international financial governance standards, even outperforming some developed economies in speed of adoption.
“Kenya embraced International Financial Reporting Standards very early, even before several European jurisdictions fully adopted them. The region has generally been proactive and forward-thinking when it comes to financial governance and reporting standards,” he says.
