Josphat Mwaura, KPMG chief executive. KPMG says it was looking at partnering with saccos in other services besides auditing accounts. FILE PHOTO | PETERSON GITHAIGA| NATION
What you need to know:
The industry regulator Sasra approved 293 auditors to audit 185 licensed saccos underlining the appetite to offer services to the unions.
International audit firm KPMG and RSM Ashvir are the only majors missing in the list of accountants authorised to audit saccos. Both confirmed they had not applied to audit the fast-growing sector.
KPMG said it was looking at partnering with saccos in other services besides auditing accounts.
“We find that the more appropriate services are advisory in the areas of strategy, governance and systems modernisation. This is a choice we sometimes have to make even with the more mature sectors,” said KPMG’s chief executive for East Africa, Josphat Mwaura.
“We did not apply; it is not a sector we specialise in,” said RSM Ashvir chief executive Ashif Kassam.
The industry regulator Sasra approved 293 auditors to audit 185 licensed saccos underlining the appetite to offer services to the unions.
Large audit firms such as PricewaterhouseCoopers, Ernst and Young, PKF, BDO, and Deloitte & Touche are licensed to audit the unions.
With the introduction of a regulator in 2010, the sector that was previously prone to corruption and mismanagement has grown, with some of the unions competing with mid-tier banks in asset size.
As at end of 2012, the latest available data from the sector, saccos had assets worth Sh202 billion.
The Kenyan market has few blue chip companies forcing auditors to scramble for all available business in formalised sectors.
KPMG is contracted by at least nine companies trading at the Nairobi Securities Exchange.
RSM has been contracted by Unaitas Sacco for an advisory role in converting into a bank.
