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- Accrual basis challenges accrue.
Accrual basis challenges accrue.
Your daily dose of Kenyan business & finance news
Kenyan Wall Street
October 04, 2024
💼 Treasury foresees challenges to implementing accrual basis accounting
In case you missed it, Treasury is currently in the process of changing its accounting system from cash-basis (which just tracks where money goes) to accrual basis (which is expected to paint a better picture of how money is spent). This change is expected to help avoid the racking up of pending bills and stalled projects. The system rollout is taking place over the next 3 years but the challenge comes with the revamp of the IFMIS system which is the accounting software used by both National and County governments. Learn more about the switch from cash to accrual accounting.
🚗 Mogo Auto slapped with KShs 10.9M fine
Mogo Auto owes the Competition Authority of Kenya KShs 10.9M with an additional 300K+ owed to three different loan customers. The CAK’s investigation came about when 4 different customers reported the company for loan overstatement following adjustments in currency between Kenyan Shillings and US Dollars. Beyond the fine, Mogo has been told to refrain from breaching their own loan agreements again and its employees must take part in compulsory compliance training. Dive into the details.
📉 Business conditions deteriorate
September business conditions have contracted slightly according to the Stanbic Purchasing Manager Index. August saw an increase but this is likely due to a rebound following the deadly protests witnessed across Kenya in late June and early July. The service sector witnessed a decline in new business which was exacerbated by a sustained contraction within the agriculture, wholesale, and retail segments. Despite this, construction and manufacturing firms reported increasing sales. What is the inside scoop?
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