Heritage

Are professional blocs cartel-like?

icpak

An ICPAK meeting: the Institute oversees one of the most robust industry certifications in Africa. FILE PHOTO | NMG

Nairobi is widely known the world-over as an epicentre for professional services. From accountants, NGO executives, and programmers to entrepreneurs, public relations experts, and bankers, we hold a powerful position in global commerce for our service sector.

Our experts also export their talent around the world. Southern Africa holds numerous Kenyan NGO executives, North America retains many Kenyan accountants, Europe employs swathes of Kenyan IT specialists, and our financiers underpin East and Central African banking institutions.

In our drive to boost our professional industries, Kenya has seen a trend of our robust professional bodies seeking Acts in Parliament to cement their control over their fields.

The Institute Of Human Resource Management (IHRM), Law Society of Kenya (LSK), Public Relations Society of Kenya (PRSK), and Institute of Certified Public Accountants of Kenya (ICPAK) each have or are seeking different Acts of Parliament regulating their industries

Bills under proposal for additional professional services include the Public Relations Society of Kenya’s Institute of Public Relations and Communication Management (IPRAC) Bill 2018.

The Kenya Psychological Association endeavours to also bring more regulations for their field.

The Association of Microfinance Professionals of Kenya desires to create a certification programme in the microfinance industry. But, we all remember the contentious Information Communication Technology Practitioners Bill proposal back in 2016 when practitioners did not champion, desire, or lead regulations on an industry.

Let us delineate positive versus hurtful aspects of industry association actions to professionalise, strengthen, and protect their professions. First, good aspects involve the vigorous certification of practitioners in respective industries.

ICPAK notably oversees one of the most robust and credible industry certifications in Africa. Also, strong professional bodies should push for consumer protection measures with clear ethical standards. LSK famously performs client protection well with strong ethical provisions for advocates.

Resilient industry associations also accredit universities and colleges that teach industry-appropriate skills.

Such standards usually exceed those of the Commission for University Education.

An example includes Kenya’s Pharmacy and Poisons Board that holds stout standards for pharmacy programmes in tertiary education institutions.

Additionally, industry associations should engage stakeholders including employers, clients, and practitioners.

PRSK retains full-bodied strong stakeholder engagement, training, and networking.

Second, questionable aspects happen when associations place too narrow training requirements with only their own institutes or colleges as acceptable training options.

However, this causes a lack of training or education competition in fields and leads to higher prices for practitioners.

Also, sometimes associations enact limits such that only those certified by the statutory body can broadly practice. Many global bodies certify professionals, but do not restrict practitioners to only those with their certifications.

In the UK, Chartered Accountants (CA) is the preferred accounting certification while ACCA is not preferred, though ACCA’s influence is growing globally.

But when there exists no threats to public safety and the public can clearly differentiate between certified and thus qualified with integrity compared to not certified, then why should governments punish those without certification with prison sentences instead of the market holding value for the certification and demanding it?

Third, unethical harmful aspects of industry associations come when they get statutory remuneration orders that require minimum charges in the profession.

The famous Merriam-Webster Dictionary defines a cartel as a combination of independent commercial or industrial enterprises designed to limit competition or fix prices.

Let us not have our industry associations stifle sector competition like a cartel.

In summary, in Kenya we have world-class professional service sector industries. Let us control and restrict quacks in our different sectors.

Let us assure that those certified by industry bodies hold high integrity, phenomenal skills, and up-to-date current knowledge. But when industry bodies restrict competition, then there exist disincentives against innovation and creativity.

Let us not put in place unnecessary regulations requiring learning from only one college, examinations written by too few on a committee controlling an entire profession, pricing floors, or too much reliance on non-democratic bodies.