The Accountant-May-June 2017

JOURNAL OF THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA 

LEARN • EXPLORE • SHARE 

MAY - JUNE 2017 

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Ksh 300 

Ushs 9,000 

Tshs 5,700 

RWF 2,400 

THE IMPACT OF 

HYPERINFLATION 

GUARANTORSHIP 

NIGHTMARE FOR 

SACCO MEMBERS 

WILL 

A MACHINE 

TAKE OVER YOUR JOB? 

FINANCIAL 

MANAGEMENT 

FOR A BETTER 

TOMORROW 

KENYA’S GREEN 

BUILDINGS 

GAINING 

MOMENTUM

with your ICPAK Smart Card 

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TABLE OF CONTENTS 

26 

COVER STORY 

Will a machine 

take over your job? 

16 

MANAGEMENT 

The power of persuasion 

in leadership 

46 

Inspiration 

The virtues of hope 

36 

WORK pLACE 

Fired or retrenched? 

It’s time to celebrate! 

66 

TRAVEL 

Fishing for pearls on 

kampala’s highest hill 

www.icpak.com 

Members of the Council 

Chairman 

FCPA Fernandes Barasa 

Vice Chairman 

FCPA Julius Mwatu 

Ag. Chief Executive Officer 

CPA Edwin Makori 

Council Members 

FCPA Pius Nduatih 

FCPA Wycliffe Shamiah 

CPA Geofrey Malombe 

CPA Obare Nyaega 

CPA Rose Mwaura 

CPA Susan Oyatsi 

Ms. Damaris Kimosop 

CPA June Kivinda 

CPA Samuel Okello 

Head of Publication/Editor 

Mbugua Njoroge 

accountant@icpak.com 

Editorial Consultant 

Angela Mutiso 

Marketing & Advertising 

Ideation Marketing 

info@ideationmarketing.co.ke 

Tel: +254 719 650 423 

Staff Writer 

Valerie Alusa 

Design, Layout & Print 

Colour Print 

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Email: memberservice@icpak.com 

The Accountant is published every 2 months by the Institute of Certified Public Accountants of Kenya. Views expressed in the journal do not necessarily reflect those of the institute, authors 

firms or employers. Reproduction of any article in this journal without permission is prohibited. The editor reserves the right to use, edit or shorten articles for accuracy, space and relevance. 

MAY - JUNE 2017 1

YOUR VIEWS 

SHARE YOUR VIEWS 

Email: accountant@icpak.com 

Address: ICPAK, CPA Centre, Thika Road 

P. O. Box 59963 - 00200 Nairobi Kenya 

2 MAY - JUNE 2017

EDITORIAL 

Dear Reader, 

The matter of computers taking 

over our jobs has concerned 

many people for quite 

sometime now. NPR, formerly 

National Public Radio, is a 

privately and publicly funded non-profit 

membership media organization that 

serves as a national syndicator to a network 

of 900 public radio stations in the United 

States. It is this organization that on 21st 

May 2015, asked on its blog if your job 

will be done by a machine. NPR pointed 

out that machines can do some surprising 

things. But what you really want to know 

is whether or not your job will be around 

in the future. NPR claims to have the 

“definitive” guide. 

According to the author of this feature, 

NPR claims that university lecturers have 

a 3.2% chance of being automated. How 

does NPR know this? Some aspects of a 

job are easier to automate than others. It all 

depends on the tasks. NPR gives a number 

of graphs and one looks at the orange bars 

to see how “College Professors” compare 

with other professions. What about 

accountants? Accountants and Auditors 

have a 93.5% chance of being automated. 

For Tax Preparers, the number rises to a 

98.7% chance of being automated. 

Financial analysts can rest comfortably 

for the time being: the chance of their 

job being automated is 23.3%: but as 

the author aptly points out, technology 

changes so fast today, that even analysts 

may gain from reading the rest of this 

article. The NPR numbers suggest that the 

professional services industry must see how 

to manage disruption and transform itself 

so that it can continue to be relevant in the 

future. One must however acknowledge 

that there is unprecedented disruption 

across all industries. Get more of this from 

the cover story. 

In the economy segment, our writer 

discusses hyperinflation. It is usually 

caused by large persistent government 

deficits financed primarily by creation 

of currency rather than taxation or 

borrowing. Hyperinflation is associated 

with wars, their aftermath, socio-political 

upheavals, or crises that make it difficult 

for the government to tax the population. 

It is often considered as a Man-Made 

Disaster resulting to a steep devaluation of 

a country’s currency which makes people 

hoard commodities. Basic goods, such as 

food and fuel, become scarce, which sends 

prices spiralling upward. In response, the 

government is forced to print even more 

money to stabilize prices and provide 

liquidity, which only exacerbates the 

situation. You eventually end up having 

many starving millionaires (in local 

currency) because they have millions in 

local currency but when they get to the 

shop, the millions are worth very little as 

was the case of the former Yugoslavia in 

the 1990s. 

In management, we share some valuable 

leadership tips. The writer says all leaders 

should reject coercion as a means of 

attaining what they desire. It is worth 

noting that leadership by definition 

omits the use of coercive power. When a 

leader begins to coerce his followers; he 

is essentially abandoning leadership and 

embracing dictatorship. No one wants to 

be forced to do something against his will. 

People generally want to believe that what 

they are doing truly makes a difference; 

and more importantly, that it is their own 

idea. You should realize this fact as a leader, 

as should all potential leaders. 

Abraham Lincoln remarked in 1864, “No 

man is good enough to govern another man 

without that other man’s consent.” John C. 

Maxwell defines leadership as influence. 

Therefore, when the conduct of followers 

is designed to be influenced, persuasion 

should be adopted not coercion… you will 

gain a lot from this feature. 

Organizational politics has always been 

a fact of life in modern worksites. The 

struggle over scarce resources, the conflicts 

that arise when critical decisions need to be 

made, and the existence of heterogeneous 

interests among individuals or groups 

serve as an ideal habitat for the emergence 

of power-seeking or influential behaviours 

that are targeted at various members 

of the intra- and extra-organizational 

sphere. This ‘political behaviour’ represents 

hidden dynamics, undercover activities, or 

other goal-seeking events that frequently 

conflict with the overall organizational 

goals. For most employees who report 

and commence their duties in such 

organizations are always in fear, of scary 

communications from their bosses. This 

informative topic is covered under business 

practice and development. 

In environment, we look at energy usage. 

Knowing how much you are charged and 

how the charges come about, might well 

make you re-think your energy usage. 

Many people are yet to catch up with 

the habit of switching off and this is 

costing them and their employers a lot of 

money. It is however encouraging to note 

that this has been recognized and green 

buildings are rapidly gaining momentum 

in Kenya. Our writer informs us that 

the Architectural Association of Kenya 

(AAK) has signed a contract with UN 

Habitat to help encourage and provide 

guidelines and technological measures 

that architects around the country will use 

to produce buildings that promote greater 

environmental responsibility. In order 

to push the agenda; there is also a push 

from the Kenya Green Building Society 

(KGBS). They recommend that county 

governments should form partnerships 

with the society so that it can give them 

guidance during the formulation of 

their by-laws to ensure that all building 

regulations adhere to the sustainable 

building agenda. 

You will find several other interesting 

articles plus your regular features in this 

publication. 

Mbugua Njoroge 

Editor 


Financial reporting and assurance 

By Stephen Obock, sobock@kpmg.co.ke 

The Auditor’s Role 

and Public Expectations 

Long Time Coming 

The role of the auditor has been dynamic 

over the years to suit the changing needs 

and expectations of society. The public 

has put the auditor on the spot regarding 

their role following the recent company 

bankruptcies and fraud cases reported in 

the country. 

The auditor is seen by the public as 

a watchdog acting as a protector and 

guardian against inefficiencies and illegal 

practices. This creates a perception that 

a clean audit opinion guarantees good 

financial health. This perception creates 

an expectation gap, i.e. the difference 

between the purpose of an audit under 

the International Standards on Auditing 

(ISAs) and what the public understands as 

the auditor’s role. 

To understand the role of the auditor 

and the public expectation, it is necessary 

to appreciate the history of auditing. An 

audit is an objective examination and 

evaluation of the financial statements 

of an organization to make sure that the 

records are a true and fair reflection of the 

transactions that happened. 

Auditing has existed since the 

beginning of human civilization. In the 

late nineteenth century, audits focused 

on detection 

of fraud and 

involved a 

review of all 

transactions 

(Lee, 1988). 

Fraud was a 

great concern as 

is today and the 

main objectives 

of auditing were 

the prevention 

and detection of fraud and errors. 

In the late nineteenth century, 

businesses grew rapidly in the United 

States (USA) and England. People began to 

invest monies into large corporations. The 

volume of transactions increased making 

a complete examination of all transactions 

expensive and inefficient. To make audits 

more efficient and less expensive, the USA 

and England introduced sampling around 

1885. Auditors performed selected tests 

on accounts rather than examining all 

transactions as had been the norm (Staub, 

1942). 

After World War I, Governments 

increased income taxes necessitating 

improvement of accounting principles 

to mitigate the increase in taxes (Staub, 

1942). Financial advice and tax planning 

emerged leading to periodical auditing of 

companies. Review of Internal controls 

was introduced in 1920s- 1930s ushering 

in modern day auditing approaches. The 

auditors evaluated controls and reduced 

detailed testing if the controls were 

effective, making audits affordable and 

efficient. 

Even with introduction of sampling 

and reliance on internal controls, the 

general public still understood the 

objective of an audit as being the 

prevention and detection of fraud and 

errors (Staub, 1942). This increased the 

expectation gap. 

According to ISAs, the objective of an 

audit is to obtain reasonable assurance 

whether the financial statements as a 



The primary responsibility for the prevention 

and detection of fraud and error rests 

with those charged with governance i.e. 

directors and management. This involves a 

commitment to creating a culture of honesty 

and ethical behaviour, enhanced by a strong 

control environment and an active oversight 

by those charged with governance. 

whole are free from material 

misstatements, whether due 

to fraud or error. Reasonable 

assurance is achieved when 

the auditor obtains sufficient, 

appropriate audit evidence 

to reduce the risk of material 

misstatements. Reasonable assurance is 

not an absolute level of assurance, there 

are inherent limitations of an audit which 

result in the audit evidence on which 

the auditor draws conclusions and bases 

opinion being persuasive rather than 

conclusive. 

The auditors’ work involves designing 

procedures to obtain sufficient, appropriate 

audit evidence about whether the financial 

statements are free from material 

misstatements. 

This requires the auditor to maintain 

an attitude of professional skepticism, 

apply professional judgment and take 

due care to ensure detection of material 

misstatements due to fraud or error. 

The primary responsibility for the 

prevention and detection of fraud and 

error rests with those charged with 

governance i.e. directors and management. 

This involves a commitment to creating a 

culture of honesty and ethical behaviour, 

enhanced by a strong control environment 

and an active oversight by those charged 

with governance. 

Owing to inherent limitations of an 

audit, there is an unavoidable risk that some 

material misstatements of the financial 

statements may not be detected, even 

though the audit is properly planned and 

performed in accordance with the ISAs. 

The risk is particularly high in the case of 

fraud because fraud may involve carefully 

organised schemes designed to conceal it, 

or intentional misrepresentations made to 

the auditor. 

Stakeholders should hold those 

charged with governance and management 

accountable since they have the primary 

responsibility of prevention and detection 

of fraud and error. The auditors are in most 

cases the last line of defence. Nonetheless, 

gross negligence in the auditor’s work 

would subject them to disciplinary actions 

by regulators. 

The auditors’ role will keep changing. 

The existence of expectation gap is 

inevitable as the natural time gap between 

the changing expectation of the public 

and the response by the profession 

remain. However, Flint (1998) advises 

that auditors should be sensitive to 

the changing expectation of the public 

while at the same time containing these 

expectations within the constraints of 

what is possible. 

There are inevitably economic and 

practical limitations on what an auditor 

can do. Honesty, transparency and 

accountability must be the building blocks 

of true and fair presentation of financial 

statements. 

The writer is an Audit Senior Manager 

with KPMG Kenya. The views and opinions 

are those of the author and do not necessarily 

represent the views and opinions of KPMG. 



WHERE WAS 

INTERNAL AUDIT? 

Reflecting on risk management responsibilities 

By CPA Gitare David Kariuki, gdkariuki@gmail.com 

It is common knowledge that 

executive management is ultimately 

responsible for managing enterprise 

risks. However, when corporate 

financial scandals come to light 

through whistle blowing, which studies 

show to be the leading means of 

uncovering occupational fraud and abuse, 

it is not uncommon to hear stakeholders 

and non-stakeholders alike asking the 

question; where was Internal Audit? 

According to the International 

Professional Practices Framework 

(IPPF), Internal Auditing is defined as 

independent, objective assurance and 

consulting services designed to add value 

and improve an organization’s operations 

by bringing a systematic, disciplined 

approach to evaluate and improve 

the effectiveness of governance, risk 

management and control processes. In the 

light of this definition, it is evident that an 

internal audit function has a role to play in 

supporting organizations to have in place 

an effective risk management framework 

that addresses among other risks, fraud 

risks. However, as the spot light shines 

on the internal audit function for failing 

to detect fraud, little discussion revolves 

around the role of the first and second 

lines of defense. The Institute of Internal 

Auditors (IIA) in its position paper dated 

January 2013 described the workings 

of a “three lines of defense” model in 

effective risk management and control 

that organizations ought to have in place. 



The model distinguishes among three 

groups (or lines) involved in effective risk 

management: 

• Functions that own and manage risk 

by implementing corrective actions to 

address process and control deficiencies 

(operation management) 

• Functions that oversee risks and assist 

management in developing processes 

and controls to manage risks (risk 

management and compliance 

functions) 

• Functions that provide independent 

assurance on the effectiveness of 

governance, risk management and 

internal controls including the manner in 

which the first and second lines of defense 

achieve risk management and control 

objectives (internal audit function) 

The position paper goes on to state that 

the “three lines of defense” model is best 

implemented with the active support and 

guidance of the organization’s governing 

body and senior management. Separately, 

the IPPF recommends a dual reporting 

relationship for the head of the internal 

audit function; to senior management and 

the Board. In light of these authoritative 

views, are what we call internal audit 

failures in fact failures of management 

and the Board? Practice today is that the 

head of internal audit functionally reports 

to the Board’s audit committee. The IPPF 

describes functional reporting by way of 

examples to include: 

• Approving the internal audit charter; 

• Approving the risk based internal 

audit plan; 

• Approving the internal audit budget 

and resource plan; 

• Receiving communications from the 

head of internal audit on the internal 

audit activity’s performance relative to 

its plan and other matters; 

• Approving decisions regarding the 

appointment and removal of the head 

of internal audit; 

• Approving the remuneration of the 

head of internal audit; and 

• Making appropriate inquiries of 

management and the head of internal 

audit to determine whether there are 

inappropriate scope or resource 

limitations 

As functional supervisors of 

the internal audit function, should 

stakeholders start asking; where was 

the Board’s audit committee? Brown 

Governance Institute (BGI), a respected 

thought leader in corporate governance 

issued a publication in 2011 titled 

‘Boardroom Behaviour and Governance’. 

The publication explored the symptoms 

of good and bad boardroom behavior 

and recommended great tools and 

resources that can help Boards improve 

boardroom behavior and from these, 

strategies that can immensely assist Board 

audit committees to effectively supervise 

internal audit functions. 

The foregoing narratives do not 

seek to entirely absolve internal audit 

functions from internal control failures. 

The IPPF through its attribute standards 

requires internal audit engagements 

to be performed with proficiency and 

due professional care, and that internal 

auditors independence and objectivity 

must not be impaired in fact or appearance. 

In addition, the head of internal audit 

is required to develop and maintain 

a quality assurance and improvement 

program (QAIP) that covers all aspects 

of the internal audit activity. Specifically, 

external assessments must be conducted 

at least once every five years by a qualified, 

independent assessor or assessment team 

from outside the organization. When 

non-conformance with the Definition of 

Internal Auditing, the Code of Ethics, 

or the IPPF impacts the overall scope or 

operation of the internal audit activity, 

the head of internal audit must disclose 

the non-conformance and the impact to 

senior management and the board. 

In conclusion, it should not be lost on 

stakeholders and other interest groups that 

the organization’s management has the 

primary responsibility for managing risks. 

This means that operational and executive 

management is responsible for identifying, 

analyzing, evaluating, treating, monitoring 

and reviewing risks. The second and 

third lines of defense provide support to 

operational and executive management 

but must not accept responsibility for 

any of the risk management steps. The 

Board’s audit committee or its equivalent 

is mandated to effectively supervise the 

internal audit function and is strategically 

placed to counsel executive management 

on risk management priorities and 

strategies. Board audit committees or 

their equivalent should consider assessing 

themselves against BGI’s ‘Boardroom 

Behavior and Governance’ standards. 

Finally, effective internal audit functions 

are those that fully comply with the IPPF. 

References: 

2013 International Professional Practices Framework (Institute of Internal Auditors website) 

Debra L. Brown and David A. H. Brown, Boardroom Behaviours and Governance (2011) 

2016 Report to the Nations on Occupational fraud and Abuse (Association of Certified Fraud 

Examiners website) 

IIA Position Paper, The Three Lines of defense in Effective Risk Management and Control (2013) 


Business Practice and Development 

GUARANTORSHIP 

NIGHTMARE FOR 

SACCO MEMBERS 

As to which method to deal with 

defaulters is best the jury is still out 

CPA Mutuku Frederick Ukongo, ukongofrederick@yahoo.com 

The cooperative movement in 

Kenya has performed superbly. 

Its contribution to the economy 

cannot be gainsaid. The 

SACCO subsector the fastest 

growing in the cooperative movement 

has close to over 250 billion in savings. 

This amount is huge; with the lion’s share 

of this amount achieved through great 

effort and sacrifice by the contributors. 

Mostly the contributors are the middle 

class and other poorly paid groups in the 

economy. In some SACCOs it takes up to 

six months to contribute continuously to 

be able to qualify to access credit facilities. 

This is no mean feat, considering that 

some members do not earn as much in 

terms of monthly income (which in most 

cases is employment salary). Advocates 

for cultivating a savings culture encourage 

savers to try as much as possible to have 

the amount deducted from source. This 

often means employers are tasked with 

the deduction and 

remission of the 

said amount 

to the relevant 

third parties. This 

system (check off ) works very well for the 

employees especially when the employers 

live true to their promise. i.e. remitting 

the deducted amounts to the SACCOs or 

other relevant bodies. 

The principles of cooperative 

movement 

From the foregoing the huge savings that 

result must be managed prudently for 

ultimate benefit of the savers. Analysis 

has been done to show how successful the 

sector is. Many a time the analysis fails to 

go a step further. Obviously it is tempting 

to embrace success at face value. It is human 

nature to assume the many challenges 

and problems that bedevil the sector. 

It is imperative to challenge the status 

quo. May be the success rate would have 

been much better if one dared challenge 

the state of complacency. It is common 

knowledge that, SACCOs operate 

on principles of cooperation, 

voluntary and open membership, 

democratic member control, member 

economic participation, autonomy and 

independence, education, training etc. it’s 

from these principles that the governance 

of the cooperative movement is derived. 

Some of the challenges that bedevil the 

SACCO subsector also originate from 

the same principles; we may say the 

weaknesses inherent in the principles. 

Guarantors’ Challenge 

One major challenge that affects the 

performance of SACCOs is the issue of 

guarantors. From the principles it is clear 

that SACCOs operate for members by 

members. When a member is in need of a 



It is common knowledge that, SACCOs operate on principles 

of cooperation, voluntary and open membership, democratic 

member control, member economic participation, autonomy and 

independence, education, training etc. it’s from these principles 

that the governance of the cooperative movement is derived. 

loan facility from a SACCO, he is required 

to present a security or collateral. In nearly 

all known SACCOs, this collateral will 

constitute the employees monthly salary, 

terminal dues and any other employment 

benefits that might accrue to him in the 

future. Of course for as long as the loan 

remains outstanding. However, these 

kinds of collateral are not considered 

sufficient on their own. The applicant 

(loan) has to get a number of guarantors in 

addition to the aforementioned securities. 

This act is the best way to ensure the 

SACCO doesn’t lose money. Definitely 

the SACCO management has it easy 

but not so, the guarantors and especially 

if the loan applicant defaults payment. 

Some SACCOs will attach the salaries of 

the guarantors and recover the defaulted 

amount overtime. Of course a huge 

burden to the guarantors considering that 

they are paying an amount they didn’t 

borrow or even consume. Another way of 

recovering the same amount (defaulted) is 

by reducing the deposits Account of the 

guarantor by his/her share of defaulted 

amount. This is equally a huge burden 

on the part of the guarantors. Well as to 

which method is the best the jury is still 

out. However, we may try to analyze the 

second method to be able to quantify the 

impact. 

Illustrative problem: 

A, took a loan of 500,000 payable in 36 

months at an interest rate of 14% per 

annum on a reducing balance method. 

He was guaranteed by 5 members of his 

SACCO (XY SACCO LTD). B was one 

of the guarantors to A’s loan. B has over 

the years taken loans and repaid and has 

saved a considerable amount (300,000), 

at least by the time A defaulted on the 

loan. When A defaulted on his loan, he 

had only paid up 8 months equivalent 

of monthly installments. On his part A 

had a total of ksh. 200,000 in deposits. 

A member is entitled to a loan amount 

equivalent to 3 times his/her Deposits 

Account. 

What will be the burden to B 

from default of A’s loan 

For easy of calculation we assume the 

total interest payable by A is 150,000 by 

the end of the loan duration. Therefore 

total loan burden = Principal Amount + 

Interest; 500,000 + 150,000= Ksh650,000. 

The monthly installments would amount 

to 650,000/36 = 18,056 per month 

When A defaulted, he had done 8 

months worth of installments = 18056 * 

8 = Ksh144,444 

Balance = 650,000- 144,444 = 505,556 

Guarantors burden = Defaulted amount 

– A’s Deposits Account = 505,556 – 

200,000= Ksh. 305,556 

Individual Guarantors Burden = 

305,556/5 =Ksh. 61,111 

B will reduce his Deposit Account by 

Ksh.61, 111 which means 

Deposit Account after default = 300,000 



– 61,111 =Ksh. 238,889 

Further if B was to take a loan before 

default, he would have gotten 300,000 * 

3 = 900,000 

After default he can only access = 

238,889 * 3 = Ksh716, 667 

The loss to B= loan before default- loan 

after default = 900,000- 716,667 = 

Ksh.183, 333 

This definitely demoralizes B and other 

affected guarantors. This is not fiction but 

the reality in the SACCO subsector. 

Illustrative case 

The following story may shed light on 

what is at stake. Wanyonyi borrowed a 

loan of 500,000 repayable in 60 equal 

installments. To qualify for the loan, 

he approached eight guarantors who 

willingly guaranteed his loan. He was 

respectable among his colleagues at work 

and beyond. He was also among the best 

employees in the institution. All these 

taken into consideration gave him a good 

credit rating at least as far as his colleagues 

were concerned. 

A year down the loan repayment, 

Wanyonyi’s employer was in a financial 

distress. It was a difficult time for the 

employer and for employees too. Rumors 

were doing the rounds and a lot of tension 

engulfed the entire firm. It was evident 

that downsizing was inevitable and 

everyone was praying against it. However, 

as always the inevitable had to happen 

and unfortunately, Wanyonyi was not 

so fortunate. Yes, Wanyonyi was among 

those who were rendered redundant. It 

was a painful realization that the monthly 

salary was no more. To make matters 

worse, he had loans to service and other 

living expenses to meet. It was a gloomy 

state of affairs for the father of three. 

When eventually the final dues were 

computed and Wanyonyi summoned 

to the human resource department, it 

was a long walk for this 39 year old. 

He was aware that the gratuity due to 

him was not even enough to repay his 

outstanding loan, leave alone funding 

his family living expenses for a month 

or two. It was a bitter pill to swallow. 

From the net payable he only managed 

to remit about a quarter of the total to 

the SACCO. This left his guarantors in 

a precarious position. His deposits were 

equally exposed before the guarantors’ 

deposits were attached; a painful reality 

after sacrificing for so many years to 

accumulate savings up to ksh 180,000. 

Three months later Wanyonyi was still job 

hunting, he was surviving on odd jobs at 

least to provide a basic meal to his family. 

By now the SACCO had given alerts to 

the guarantors to the effect that the loan 

was doubtful. It was another difficult 

moment for Wanyonyi and his guarantors. 

The deposits were attached to offset the 

outstanding loan and any accumulated 

interest and default penalties. Wanyonyi 

was declared a defaulter and he could not 

access the SACCO services again. If he 

ever wished to rejoin, he would have to 

repay his guarantors and wait for about 

six months more before he could access 

the services. The guarantors had their 

borrowing capacity reduced. They would 

not be able to access the same amount of 

loan accessible before the loan default. 

Questions to consider: 

a. Will B and others be motivated to 

save anymore? 

b. Isn’t the SACCO also losing in the 

process? 

c. Is this the best available method of 

recovery? 

d. Can’t insurance come in handy to save 

the situation? 

e. Doesn’t this create an unending cycle? 

The reasons for defaulting on the loans 

are varied. Some of the major reasons 

are as follows: 

a. Lose of employment/ source of 

income (Case of Wanyonyi) 

b. Incapacitation ( accident , natural 

calamities) 

c. Deliberate default to get back 

at members (borders on theft or 

unfaithfulness - breach of trust). 


Business practice and development 

ORGANIZATIONAL 

POLITICS INTERNAL 

AUDIT AND ‘THE MUD’ 

Character is a contributing factor to creating it 

By CPA Mercy Bukania, marceybukania@gmail.com 

‘Organizational politics.’ These are the 

words on every employee’s lips today. 

Organizational politics has always been 

a fact of life in modern worksites. The 

struggle over scarce resources, the conflicts 

that arise when critical decisions need to be 

made, and the existence of heterogeneous 

interests among individuals or groups 

serve as an ideal habitat for the emergence 

of power-seeking or influential behaviors 

that are targeted at various members of 

the intra- and extra-organizational sphere. 

This ‘political behavior’ represents hidden 

dynamics, undercover activities, or other 

goal-seeking events that frequently conflict 

with the overall organizational goals. 

For most employees who report 

and commence their duties in such 

organizations are always in fear, of scary 

communications from their bosses. ‘What 

sort of email has my supervisor written 

to me today?’ “I am extremely offended!” 

What does he mean I insubordinated him? 

These are situations all too familiar among 

a vast majority of employees in various 

institutions today and If not managed in 

time, become a chronic disease that refuses 

to heal with any ‘medication’ it receives. 

In this article, I choose to refer to 

organization politics as ‘the mud’. The 

mud can be extremely inhibiting to the 

growth of an internal audit department 

because of its implications. 

The Origin of ‘the mud’ 

What creates ‘the mud’? Well, from 

experience, I have come to realize that ‘the 

mud’ is created as a result of many factors 

ranging from the scramble for limited 

resources, the type of managerial decisions 

which encourage hypocrisy, secrecy, 

rumors among many other vices, lack of 

SMART objectives to shape all activities 

among many other factors. But where does 

the problem really begin? Based on my 

experience, it is the small issues that we 

never imagine can be of great magnitude. 

I like to view an organization as this 

small community where we all come from 

diverse religions, races, political affiliations 

and ethical backgrounds but who have a 

common goal. 

But have you ever thought that ‘the 

mud’ could stem from something as 

simple as our genetic makeup? By this I 

mean in simple terms ‘how a person is’, 

‘their character.’ 

Kaldina, a senior associate working 

in the litigations department of a law 

firm was a passionate employee about 

her job. She worked diligently and met 

deadlines. Her effort was instrumental in 

increasing the firm’s client base by 75%, 

the highest the firm had ever achieved 

since its inception .Her job required her to 

be at various locations within the country 

whenever she was required to do so and 

her boss was always well informed about 

her work plan and her whereabouts. ‘I 

want us to work as a team with trust and 

honesty. i have no problem with how you 

choose to work as long as you perform 

your duties as required.’’ ‘Kaldina welcome 

to the team’, said Maurice during kaldinas 

induction to the firm as a new employee 

ten years ago. 

‘Kaldina, Maurice the managing partner 

instructed me to hand you this envelope 

when you arrive’ said Alicia, the personal 

assistant to Maurice. Kaldina opened 


Business practice and development 

the envelope, inside it was a document 

that read, ‘RE: MISCONDUCT 

BY KALDINA SHARMA…’.The 

complaints from her boss were clear as 

she read through, despite the fact that she 

always made him aware of her activities 

and her whereabouts. To her shock and 

amazement he vehemently denied this in 

the letter that he on several occasions had 

requested her to perform various activities 

in the litigations department but she went 

ahead and defied his instructions. Further, 

he claimed to have had no knowledge of 

her whereabouts or her activities and that 

she acted on her own on every matter she 

handled for the firm. 

How does this happen? How is it that 

as an employee you do your best to inform 

your boss of every activity you undertake 

and to which at the time he or she has no 

objection and gives a go ahead and then 

later denies these actions? According to 

me, it boils down to one thing, Character. 

Character is a contributing factor to 

creating ‘the mud.’ When you think about 

it, if all employees were of good character 

that is; if they were trustworthy, cautious, 

and gentle amongst other traits, would ‘the 

mud’ really exist in the magnitude it does 

today? Yes, it would exist, but with a lesser 

magnitude than today. 

Internal audit and ‘the mud’ 

One of the key roles internal audit performs 

in an organization is to give assurance on 

the effectiveness of internal controls and 

‘The mud’ can be a big obstacle to the 

performance of this key role. ‘How?’ 

I would say this in the words of 

Richard F Chambers, President and CEO 

of IIA Global, “The good news is that our 

stakeholders view internal auditing as one 

of the most honest and ethical professions. 

The bad news is that, that may not always 

be what they seem to want” 

Carol, the internal auditor of the same 

firm was requested by Maurice to conduct 

an audit into the Human resource practices 

of the firm. According to him, there were 

suddenly doubts on how Kaldina was 

recruited because the recruiting manager 

was of the same race. 

Carol nevertheless conducted the 

audit. However, no anomalies were 

discovered. Maurice despite having been 

advised against it, further contracted 

an independent audit firm to conduct 

another audit since according to him, there 

was a possibility of bias during the audit 

conducted by Carol. Maurice had been 

well advised that if he was to do so, then 

the object of the independent audit ought 

to be to ascertain the veracity of the issues 

raised and not to evaluate the work of the 

internal auditor. The independent audit 

firm did not detect any anomalies. 

Maurice albeit disappointed further 

then convened a meeting with the other 

partners to express his disappointment 

that Kaldina was performing her duties 

without consulting him and even held a 

meeting with Carol to request her to be 

‘more credible’ with her audit. 

The challenge of being requested to 

alter an audit report is one of the many 

challenges an internal auditor caught up 

in the politics of the organization would 

ordinarily face. Maurice was vindictive 

and was jealous of Kaldina’s exemplary 

performance and as a result hoped 

Carol would report what he preferred by 

requesting her to be “more credible”. 

A research report from the Institute of 

Internal Auditors Research Foundation 

(IIARF), The Politics of Internal Auditing, 

found that; 

• 55 per cent of Chief Audit Executives 

surveyed said they had been directed to 

omit or modify an important audit finding 

at least once, with 17 per cent indicating it 

had happened three or more times. 

• 49 per cent reported they were directed 

to not perform audit work in an area that the 

Chief Audit Executive viewed as high risk. 

• 32 per cent said they were directed to 

perform work in a low-risk area so that an 

executive could investigate or retaliate against 

another individual. 

Preventing stains from the mud 

Is it possible for the internal auditor to 

prevent ‘the mud’ from occurring? No. 

An internal auditor cannot prevent the 

existence of organizational politics neither 

can they change human character. However, 

the damage of the stains that would occur 

from touching or falling into the mud can 

be prevented. There are various mechanisms 

that can be implemented by the internal 

audit department to prevent damage from 

stains of touching or falling into the mud. 

According to me, although there are possibly 

others, there are two key mechanisms I 

believe would prevent damage from the 

stains of organizational politics; Honesty and 

emotional intelligence. 

Carol conducted the audit despite the fact 

that she knew it may not have been necessary 

to do so. Nevertheless she conducted the audit 

anyway as she had been officially requested 

to do so. Carol further stuck to her findings 

and despite pressure from Maurice, to alter 

the report, chose to be honest and stood her 

ground even at the possible risk of losing her 

job. 

Honesty is key to preventing the effects of 

organizational politics. If Carol, had perhaps 

been dishonest, she probably would have been 

the next victim of ‘the mud’ such that her 

integrity would then become questionable 

had the report been further interrogated by 

an objective party. 

Emotional intelligence is the management 

of one’s own emotional state to regulate 

behavior. Maurice contracted an audit firm 

to perform the work previously conducted 

by Carol because he had doubts. As you can 

imagine this would irk anyone but Carol 

controlled her emotions and maintained the 

findings of her audit. 

I conclude my view of ‘organizational 

politics’ and ‘internal audit’ as follows; the 

impact of Organizational politics on internal 

audit is like ‘patients who have died’, that 

is, just like ‘death ‘which is certain, so is 

the impact of organizational politics on 

internal audit. I would therefore propose that 

internal audit should be like ‘the mortician’ to 

ascertain the ‘cause of death’ of the patients 

to prevent further deaths, by constantly 

developing strategies to reduce the impact of 

organizational politics on internal audit. 


Economy 

THE IMPACT OF 

HYPERINFLATION 

By Stephen Obock, sobock@kpmg.co.ke 

A case of starving 

millionaires 

Inflation is the general increase in prices of 

goods and services. Political, economic and 

social factors in an economy may sometime 

cause the prices of products and services 

to increase or decrease significantly which 

affects the general purchasing power of 

money in an economy. 

When the rate of increase in 

inflation is very high over a long period 

of time, an economy may end up being 

hyperinflationary. Hyperinflation 

occurs when an economy experiences 

skyrocketing inflation that leads to a 

significant loss of purchasing power of 

individuals due to loss in real value of local 

currency. 

Hyperinflation causes the population 

to minimize their holdings of local money 

and switch to holding a relatively stable 

foreign currency. Under such conditions, 

the general price levels increases rapidly as 

the official local currency quickly loses real 

value such that to buy a unit of product/ 

service, you need more of the local 

currency than you previously would. 

A friend from Zimbabwe gave an 

example where a 30-pound bag of 

potatoes cost 90 million Zimbabwe 

dollars in the first week of March 2009 

and within two weeks, a similar bag was 

costing 160 million Zimbabwe dollars. 

Citizens needed to carry money in sacks 

when going for shopping since they 

needed more money due to Zimbabwe’s 

skyrocketing inflation which was the 

world’s highest in 2009, approximating 

100,000% a year. 

Hyperinflation is usually caused by 

large persistent government deficits 

financed primarily by creation of currency 

rather than taxation or borrowing. 

Hyperinflation is associated with wars, 

their aftermath, sociopolitical upheavals, 

or crises that make it difficult for the 

government to tax the population. It is 

often considered as a Man-Made Disaster 

resulting to a steep devaluation of a 

country’s currency which makes people to 

hoard commodities. Basic goods, such as 

food and fuel, become scarce, which sends 

prices spiraling upward. In response, the 

government is forced to print even more 

money to stabilize prices and provide 

liquidity, which only exacerbates the 

problem. In the end, you end up having 

many starving millionaires (in local 

currency) because they have millions in 

local currency but by the time they reach 

the shop, the millions are worth very little 

as was the case of the former Yugoslavia in 

the 1990s. 

Accounting in a 

hyperinflationary economy 

Financial statements portray the effects 

of transactions and their economic 

characteristics (assets, liabilities, equity, 


Economy 

a stable foreign currency, transactions are 

priced to compensate for expected loss of 

purchasing power during the credit period 

and the cumulative inflation rate over the 

past three years approaches or exceeds 

100%. 

Accounting Standards aim at ensuring 

a fair presentation of financial statements. 

As a result, companies that have operations 

in a hyperinflationary economy such as 

South Sudan, are required to restate their 

financials to reflect the economic reality 

at the point of reporting. To do this, the 

company has to measure the loss they 

have incurred by holding assets in the local 

currency which is now devalued and also 

measure any gain from holding liabilities. 

Assume on 1 January 2016, a company 

had local currency units (LCU) 100M 

equivalent to USD 100K, enough to buy a 

house, but held that cash in LCU and the 

economy becomes hyperinflationary such 

that a similar house at 31 December 2016 

costs LCU 500M, equivalent to USD 

98K. While the price in LCU increased 

five times, the USD price only changed 

marginally. In LCU, the company lost 

purchasing power by holding the LCU 

100M in the bank and needs much more 

LCU to buy a similar house at December 

2016. The Accounting Standards require 

the loss to be recognised in financials 

which erodes shareholders value. Similarly, 

if the company had more liabilities than 

assets, it would recognise a gain. 

In a hyperinflationary economy, 

companies in a net monetary asset position 

(monetary assets exceeds monetary 

liabilities) lose purchasing power while 

those in a net monetary liability position 

(monetary liabilities exceed monetary 

assets) gain purchasing power. The gain 

or loss in purchasing power is recognised 

in the profit or loss at the reporting date. 

Some Kenyan companies have operations 

in South Sudan which is considered 

hyperinflationary at 31 December 2016, 

it was expected that these companies 

would report losses or gains attributable 

to hyperinflationary impact on the 

subsidiaries. Stakeholders were to expect a 

significant impact on their net worth when 

these companies released their results for 

the year ended 31 December 2016. 

income and expenses). Financial 

statements will only guide decision 

making if they reflect economic 

substance of the transactions. Gains or 

losses in purchasing power are reality in a 

hyperinflationary economy. 

There are various indicators of a 

hyperinflationary economy, these include 

the general public tends to keep wealth in 

Hyperinflation is associated with wars, 

their aftermath, sociopolitical upheavals, 

or crises that make it difficult for the 

government to tax the population. 


Management 

THE POWER OF 

PERSUASION IN 

LEADERSHIP 

Everyone everywhere is 

always being led 

By Joseph Nyanchama, nyanchamajoseph@gmail.com 

There is an old saying 

that goes, “If you 

keep your attention 

on learning the tricks 

of the trade you will 

never learn the trade.” One of the 

hidden truths of life is that the 

path to the prize is always more 

valuable than the prize itself. As 

leaders we are always tempted to 

look for shortcuts to enable us 

get ahead and obtain the results 

that we desire without due regard 

to the feelings of our followers. 

Since we want to get quick results 

that we desire, we coerce them. 

Always all leaders should 

reject coercion as a means of 

attaining what they desire. It 

is worth noting that leadership 

by definition omits the use of 

coercive power. When a leader 

begins to coerce his followers; 

he is essentially abandoning 

leadership and embracing 

dictatorship. 

No one wants to be forced 

to do something against his will. 

People generally want to believe 

that what they are doing truly 

makes a difference and more 

importantly, that it is their own 

idea. You should realize this fact 

as a leader, as should all potential 

leaders. 

Abraham Lincoln remarked 

in 1864, “No man is good enough 

to govern another man without 

that other man’s consent.” John 

C. Maxwell defines leadership 

as influence. Therefore, when the 

conduct of followers is designed 

to be influenced, persuasion 

should be adopted not coercion. 

There is an old maxim that says, ‘a 

drop of honey catches more flies 

than a gallon of gall”. So, if you 

want to win a follower to your 

cause, first convince him or her 

that you are his sincere friend. 

This can only be done through 

persuasion and nothing else. In 

fact, there is a drop of honey that 

catches his or her heart. However, 

if you try to dictate to his or her 

judgment or to command his or 

her action, he or she will retreat 

to himself or herself, close all the 

avenues to his or her head and his 

or her heart. 

I remember vividly during 

my childhood days in school that 

one day in our school, all heads 

of classes; from class one to seven 

were mandated to gather all 

students in assembly to honour 

a government official through 

patriotic songs and recitation of 

poetry. In the course of rushing to 

the assembly point, I stepped on a 

nail on bare feet and was seriously 

injured. I stayed home for a week 

and my mother was greatly 

concerned for missing several 

lessons. She went to borrow 

shoes from her sister’s son. When 

she brought the shoes, they were 

number three, yet I used to wear 

number four and half. I tried to 

squeeze my feet in but could not 

fit. My mother persuaded me to 

persevere and encouraged me to 

look for a lubricant (Vaseline). I 

tried to apply Vaseline and tried 


Management 

to run around and in fact true to her 

word, the size number three stretched 

to size number four and half. Through 

her persuasion and encouragement 

I endured the pain and finally my 

feet fitted perfect into number three. 

What a leader my mother was with 

persuasive skills! 

Everyone everywhere is always 

being led. Whatever conditions, 

circumstances or predicament in 

which a person, a family, community, 

organization or nation may find 

itself, it all depends on the nature of 

a leader; whether he or she possesses 

certain persuasive skills. 

At this juncture, I wish to discern 

the true nature of a persuasive leader 

by borrowing a leaf from the former 

president of a United States, Abraham 

Lincoln. Looking into Lincoln’s 

life as a state legislator, lawyer and a 

congressman, I found out that it was 

his mastery of the art of persuasion 

that brought him much of his success. 

Holding the position of president 

of the United States gave him not 

only vast powers but wide ranging 

influence. He realized that to get 

things done his way, he did not 

have to issue an order but could 

merely imply something or make a 

suggestion. This proved more effective 

than commanding others to obey him. 

He preferred to let his generals make 

their own decisions and hoped that 

through his suggestions they would 

do the right thing. Relating to a well 

chosen story or statement was his chief 

form of persuasion in getting others 

to come around to his side. He once 

attempted to convince his secretary of 

the treasury, Salmon P. Chase, that it 

was a good idea for the government 

to issue Interest-Bearing currency as 

a means of raising money to support 

the war effort. Chase, however, 

objected to the proposal and argued 

that it was unconstitutional. Rather 

than simply ordering Chase to do it, 

which he could have as president, he 

chose instead to make a philosophical 

statement. He said, “These rebels are 

violating the constitution in order to 

destroy the union. I will violate the 

constitution, if necessary to save the 

union, and I suspect Chase that our 

constitution is going to have a rough 

time of it before we get done with this 

now.” 

Contemporary leaders can learn 

an important lesson from Lincoln’s 

persuasive skills. Leadership often 

involves parenting, and Lincoln’s 

fatherly tendencies aided him in his 

position as president. The organization 

is family; the leader is the head of the 

family. Consequently, leaders often 

nurture and guide subordinates much 

as parents do to children. 

With today’s employees wanting 

more than monetary and tangible 

rewards, leaders need to use different 

persuasive tactics than the traditional 

“stick and carrot” approach. Building 

rapport with a variety of workers 

allows you to take the most effective 

path to success without damaging 

relationships. Remember that a leader 

is not known by the medals on the 

chest, but by the stars at the back. 

Kunte Rockne said, “When the 

going gets tough, the tough get 

going.” When the roads are rough and 

the tough rise to the occasion, you do 

not need to coerce others due to anger, 

be kind and persuade them to support 

your cause. Every problem has a 

limited lifespan and as a leader do 

not lose the opportunity to guide your 

followers to the end of the lifespan by 

calmness and persuasion. 

Always all leaders should reject coercion as a 

means of attaining what they desire. It is worth 

noting that leadership by definition omits the 

use of coercive power. When a leader begins to 

coerce his followers; he is essentially abandoning 

leadership and embracing dictatorship 


MANAGEMENT 

UNDERSTANDING 

THE RISK MANAGEMENT 

PROCESS 

By CPA Abdhalla Mambo Dallu, abdhallamambo@yahoo.com 

Identifying risks, as well as their 

likelihood and overall impact, can 

help beginner internal auditors 

provide recommendations that 

enable companies to develop an 

effective risk management plan. 

Besides identifying the risks facing an 

organization, internal auditors help assess 

the impact risks can have on companywide 

performance and processes. 

Therefore, the role of auditors is not 

only to evaluate risks, but to determine 

whether adequate controls are in place 

to mitigate risks effectively. Becoming 

familiar with the different elements of 

an effective risk management process can 

help beginner internal auditors provide 

recommendations that address the 

organization’s risk management needs and 

identify risks before they become a threat 

to company-wide assets and data. 

What is Risk? 

According to The Institute of Internal 

Auditors, risk is defined as the possibility 

that an event will occur, which will 

impact an organization’s achievement of 

objectives. There are many forms of risk in 

an organization, including IT risk, financial 

risk, operational risk, network security 


MANAGEMENT 

risk, and personnel risk. To address risks 

more effectively, organizations may use a 

risk management approach that identifies, 

assesses, manages, and controls potential 

events or situations. 

Among other things, the goal of 

effective risk management is to ensure 

that each risk is identified, documented, 

prioritized, and mitigated whenever 

possible. Because all organizations face 

risk, whether positive (i.e., opportunities) 

or negative (i.e., events that hinder 

company processes), the challenge 

for auditors is to know when risk will 

occur and the impact it will have on the 

organization. 

In addition, auditors need to consider 

the probability that the risk will occur. 

For example, it may not be necessary 

for the organization to worry about a 

particular IT risk when the likelihood 

that it will occur is significantly low 

and its impact is low as well. However, 

organizations should concentrate on lowprobability 

risks that will have a highnegative 

impact. As a result, looking at 

the impact and probability of each risk is 

important when establishing an effective 

risk management program that addresses 

company-wide risk. 

The Risk Management 

Process 

When establishing a risk management 

process or initiative, auditors should 

recommend that organizations examine 

best management practices in the area. 

Typically, risk management plans have 

the following objectives: 

1. To eliminate negative risks. 

2. To reduce risks to an “acceptable” level 

if risks cannot be eliminated. This means 

a risk level the organization can live with, 

making sure that proper controls are in 

place to keep risks within an acceptable 

range. 

3. To transfer risks by means of insurance 

(i.e., insuring company assets for theft 

or destruction, such as hurricane or fire 

damage) or to transfer the risk to another 

organization (i.e., using a third-party 

vendor to install network equipment so 

that the vendor is made responsible for 

the installation’s success or failure). 

Risk management consists of risk 

assessments, risk mitigation, and ongoing 

risk evaluations and assessments. The 

risk assessment stage is where the 

auditor identifies and evaluates each 

risk, the impact these risks have on the 

organization, and any risk-reducing 

recommendations. The end result of the 

risk assessment is to determine the extent 

of the potential threat and its associated 

risk, which is defined as the likelihood 

that a given threat can exploit or take 

advantage of a particular vulnerability. For 

example, if an auditor is evaluating an IT 

system, the threats to the system should 

be analyzed in conjunction with potential 

vulnerabilities and any implemented 

controls. 

The risk mitigation stage involves 

prioritizing, implementing, and 

maintaining appropriate risk-reduction 

measures that are recommended in the 

risk assessment process, while the ongoing 

risk evaluation and assessment stage 

asks that the organization continuously 

evaluate their risk management activities 

in reducing risks. 

a) Identifying Risks 

The risk assessment process begins with 

the identification of risk categories. An 

organization most likely will have several 

risk categories to analyze and identify 

risks that are specific to the organization. 

Examples of risk categories include: 

• Technical or IT risks. 

• Project management risks. 

• Organizational risks. 

• Financial risks. 

• External risks. 

• Compliance risks. 

For instance, technical risks are associated 

with the operation of applications 

or programs including computers 

or perimeter security devices (e.g., a 

computer that connects directly to the 

Internet could be at risk if it does not 

have antivirus software). An example of 

a project management risk could be the 

Likelihood Level 

High 

Medium 

Low 

Likelihood Definition 

inadequacy of the project manager to 

complete and deliver a project, causing the 

company to delay the release of a product 

to the marketplace. Organizational risks 

deal with how the company’s infrastructure 

relates to business operations and the 

protection of its assets (e.g., the company 

does not have clear segregation of duties 

between its production and development 

environments), while financial risks 

encompass events that will have a 

financial impact on the organization (e.g., 

investing the company’s cash reserves in 

a highly speculative investment scheme). 

External risks are those events that 

impact the organization but occur outside 

of its control (e.g., natural disasters such 

as earthquakes and floods). Finally, a 

compliance risk occurs when a company 

does not comply with mandated federal 

regulations, which often results in fines or 

legal sanctions. 

b) Determining the Risk Likelihood 

Level 

Once risks are identified, the next step 

is to determine the likelihood that the 

potential vulnerability can be exploited. 

Several factors need to be considered 

when determining this likelihood. First, 

the auditor needs to consider the source 

of the threat, the motivation behind 

the threat, and the capability of the 

source. Next, auditors need to determine 

the nature of the vulnerability and, 

finally, the existence and effectiveness 

of current controls to deter or mitigate 

the vulnerability. The likelihood that a 

potential vulnerability could be exploited 

can be described as high, medium, or low. 

c) Identifying the Risk’s Impact 

The next step is to determine the impact 

The threat’s source is highly motivated and 

sufficiently capable, and controls that prevent the 

vulnerability from being exercised are ineffective. 

The threat’s source is motivated and capable, but 

controls are in place that may impede a successful 

exercise of the vulnerability. 

The threat’s source lacks motivation or capability, 

and controls are in place to prevent or significantly 

impede the vulnerability from being exercised. 


MANAGEMENT 

Gor Mahia fans engaging AFC Leapards fans in a fight during the Kenya Power Charity Cup at Nyayo National Stadium 

that the threat could have on the 

organization. It is important for auditors 

to understand that not all threats will 

have the same impact. This is because 

each system in the organization most 

likely will have a different value (i.e., 

not all systems in the organization are 

worth the same or regarded in the same 

way). For instance, to evaluate the value 

of a system, auditors should identify the 

processes performed by the system, the 

system’s importance to the company, 

and the value or sensitivity of the data 

in the system. A system that handles the 

Impact 

High 

Medium 

Low 

Definition 

In addition, auditors need to measure the 

risk’s actual impact on the organization. 

This can be done by measuring the risk’s 

impact in a quantitative (e.g., revenue loss 

or the cost to replace IT equipment) or 

qualitative manner (e.g., the loss of public 

confidence when a security breach is 

announced in the media). 

Once a risk’s impact is measured, 

company’s payroll will have more value 

than the system that is used to keep the 

lunchroom menu database. 

The impact of a security event 

can be defined as a breach or loss of 

confidentiality, integrity, or availability, 

which may result in an unauthorized 

disclosure of company information (i.e., 

loss of confidentiality), the improper 

modification of the information (i.e., loss 

of integrity), and a system’s unavailability 

when needed (i.e., loss of availability). 

The magnitude of impact also can be 

categorized as high, medium, or low. 

High impact risks may result in the high costly loss 

of assets; risks that significantly violate, harm, or 

impede operations; or risks that cause human death 

or serious injury. 

Medium impact risks may result in the costly 

loss of assets; risks that violate, harm, or impede 

operations; or risks that cause human injury. 

Low impact risks may result in the loss of some 

assets or may noticeably affect operations. 

the auditor can identify its probability 

of occurring and complete an impact 

assessment for each risk. 

When addressing risks, many 

organizations usually start by correcting 

those risks with a lower impact to the 

organization and a lower probability 

because these are easier to fix — and fixing 

a greater number of open issues in a short 

amount of time looks better on paper. 

However, auditors should recommend 

that organizations start by addressing 

those risks that will have the highest 

likelihood of occurring and will have the 

highest impact. This is because by focusing 

on the low-impact risks first, the company 

still remains vulnerable to the high impact 

risks that can cause irreparable damage. 

Conclusion 

Many organizations are implementing 

risk management programs that can help 

them address company-wide risks and 

potential threats. In the area of IT, an 

effective risk management program relies 

on the auditor’s expertise, thus enabling 

the organization to apply the necessary 

risk management controls to a specific 

area or IT system. 

To maximize its effectiveness, 

auditors should recommend that the 

risk management initiative receives the 

support and commitment from senior 

management. This will help to set the 

proper tone at the top for the program, 

as well as ensure that controls are 

managed properly and implemented risk 

management policies and procedures are 

adhered to by company staff. In addition, 

the proper tone at the top will help to 

establish the organization’s attitude 

toward risk and the kinds of risks that are 

acceptable. Finally, the audit team needs to 

have the proper training or expertise in the 

area of risk management to better identify 

and rate risk levels as well as evaluate 

controls to determine if they meet the 

organization’s risk management needs. 


Finance and Investment 

FINANCIAL MANAGEMENT 

FOR A BETTER TOMORROW 

Putting some funds away for a rainy day 

CPA Mutuku Frederick Ukongo, ukongofrederick@yahoo.com 

The difference between richness 

and poverty is often brought 

about by the management part. 

The best management practice 

will yield best results all other 

factors remaining constant. Recently a 

friend shared this with me: “the difference 

between a salaried person and the beggar 

at Tom Mboya Street in Nairobi is ones 

months’ salary”. A debatable point but 

very pregnant with truth. We have heard 

and witnessed cases of people who retired 

after decades of work life and immediately 

transformed into beggars. Sounds untrue; 

but this is a reality we face too often. 

In my village a story is told of two men 

who died months after their retirement. 

The story has it that these two men were 

very healthy and that the only reason that 

could be attributed to their deaths was 

the realization that their monthly salaries 

were no more; it was difficult to provide 

for their families. They did not have in 

place a retirement plan. During their 

work life, they did not plan well. In fact 

it is rumored that they led very luxurious 

lifestyles. The most precious asset they 

owned by the time of retirement was a 

car. It is rumored that even cash to fuel 

the car was hard to come by. Throughout 

their work life, they had only one source 

of income; the monthly salary. What 

they did not realize is the mistake that is 

repeated every now and then; the fact that 

employment income has an end. 

This is not only limited to employment 

income but even to business income, 

whatever the nature of business. This 

can be well understood when we look 

at a business life cycle. Ordinarily, 

every business has a life cycle, which 

is characterized by four major stages, 

namely; 

• Introduction stage 

• Growth stage 

• Maturity stage 

• Decline stage 

Introduction 

The introduction stage of a business is 

usually a very difficult one. A business 

may take time to grow its sales. This will 

definitely impact its cash flow. It may 

require a huge marketing budget. It 



will also need huge initial out flow in 

terms of acquisition of essential assets. 

It is usually a stage that requires proper 

management and great discipline. 

Growth stage 

The growth stage comes immediately after 

successfully navigating the challenges of 

introduction stage. The business at this 

stage has many return customers and its 

cash flows are impressive. It is making 

profits. Expansion is usually common 

at this stage, opening new branches or 

even introducing new lines of business. 

The negative at this stage is competition 

increase by the day. If the management 

is able to innovate and ensure superior 

customer experience then competition 

will not be a major threat. However if they 

are not able to wade off the competitors, 

the cash flows are considerably reduced. 

Maturity stage 

Immediately after the growth stages, the 

business enters the maturity level. Here 

the business has almost constant level 

of income. The cash flows are stable. The 

management at this level will determine 

whether the business will transit to the 

decline stage or not. A wise business 

person will create other income streams 

to ensure if the original ones dry up, he or 

she has a backup. On the other hand if the 

management is not keen the businesses 

will descend into the decline stage. 

Decline stage 

The last stage is usually the decline one. 

If a business fails to diversify during the 

growth and the maturity stages, it will 

decline. Yet still if management does not 

act with speed during the decline stage, 

the eventual death of the business is 

inevitable. 

The long background provided brings 

us to the essentials of financial discipline. 

The management part, hence we talk 

of financial management (personal or 

corporate). The objective of financial 

management; personal or corporate is 

value addition or wealth creation. The 

value or wealth created is for the benefit 

of the owner (s). Value creation calls for 



Wherever, you find yourself, it is never too late, and 

like they say, there is always room for improvement. 

Whatever your level of current income, ensure you spend 

wisely (budget), Save regularly and invest smart 

establishment of clear guidelines on how 

we source for income and how we spend it. 

This is what we call budgeting. 

Budgeting 

It has been said that he who fails to 

plan, plans to fail. This is true in financial 

management. A story is told of a young 

couple that won a lottery. The excitement 

was great and as it happens with majority 

of people, spending begun without much 

thinking. Foremost in the list of things 

acquired was a car, followed by a holiday 

in another country for several weeks; in 

other words the couple was on a spending 

spree. After all, money was there in plenty. 

A few months down the line the now ex 

millionaires were back to the life they 

led before the windfall. All the furniture, 

car and other items they had bought 

were eventually sold to fund their living 

expenses. 

It does not have to be a windfall; even 

employment income, business income etc 

need discipline in spending. A budget is a 

tool that ensures discipline in spending. It 

is based on the notion that resources are 

scarce and therefore need to be prioritized. 

It is said, Rome was not built in a day. 

Equally a person or a business cannot do 

all possible things at once. If we budget 

well and in addition the budget is strictly 

followed, we will be able to release some 

funds towards savings. 

Savings 

Savings is a very good concept both 

in personal and corporate financial 

management. Loosely, savings may be 

described as keeping or putting some 

funds away for a rainy day. From the above 

discussed business life cycle, we realize 

that at some point the need for spare cash 

is inevitable. The money put aside during 

good times will come in handy during 

difficult times. It will help the business in 

its expansion endeavors. The same money 

can be invested to generate more income 

for the individual or the firm. It therefore 

becomes important even as we think 

consumption, we must think savings. If, 

the two men alluded to earlier on had kept 

some savings away, may be they would have 

lived longer. If the couple had kept some 

cash away and gone further to invest, they 

probably would still be millionaires. 

A story is told of the Kitengela 

BodaBoda operators who are proud home 

owners. This was possible through savings. 

Putting away ksh 100 per day, in the long 

run enabled them to acquire land and 

eventually construct their own homes. This 

goes a long way to prove that nothing is 

impossible and where there is a will there 

will always be a way. Our present sacrifices 

will yield much more tomorrow, if only 

we remain focused. Remaining focused 

means we have a plan in place and we are 

consistent in what we are doing. A great 

discipline is called for when it comes to 

savings. 

Investment 

When we talk of investment, one does 

not need millions of shillings to invest. 

Investment is a very broad term. In its 

simplest it entails anything that one does 

now for a promised return. When one 

starts buying and selling Sukuma wiki in 

the local market, he or she has invested in 

that business. He is expecting a return out 

of the operations. On a higher level when 

a business man buys millions of shares in 

a listed company, he is investing. A return 

is expected at the end of the day. We have 

as many investment opportunities as our 

imagination can fathom. Some investment 

opportunities will call for specialized 

knowledge while others are straight 

forward. 

When one is investing two things must 

guide him or her. These two things are risk 

and return. Expected return is influenced 

by risk. There d are different levels of risk 

and levels of risk appetite. 

Level of risk 

a. High risk 

b. Moderate risk 

c. Low risk 

Risk appetite 

d. Risk taker 

e. Risk indifferent 

f. Risk averse 

Appeal to artists in the 

creative industry 

To invest smart is to take calculated risks. 

However if one remains too conservative as 

pertains to risk, he or she will have minimal 

returns. In other words the greater the risk, 

the higher the expected returns. Therefore, 

any investment opportunity must be 

understood in terms of its expected return 

and the inherent risk. 

Are you an artist, in the creative 

industry? Maybe your career is at its peak? 

Are you suffering from the consumption 

disease that is inherent in the industry? 

Or are you among the smart few who have 

innovated beyond their core business? 

Wherever, you find yourself, it is never too 

late, and like they say, there is always room 

for improvement. Whatever your level of 

current income, ensure you spend wisely 

(budget), Save regularly and invest smart. 

The difference between you, who today is 

flying and the underdog in the industry is: 

d. Your spending (budgeting) 

e. Your savings 

f. Your investments 

If you are earning your income from 

singing, performing etc, nothing prevents 

you from investing in other areas to grow 

your income. Diversification is the term 

we use to refer to spreading your risk. It 

is looking beyond your initial income 

stream. Creating several income streams is 

imperative. 

Personal development is another key 

aspect. You need to be the best in the 

industry. Invest in yourself. Acquire more 

skills relevant in the industry, this will set 

you apart from the rest. Complacency, 

breeds dormancy and eventual death. 

Innovate, innovate and again I say 

innovate. 


Information Technology 

DATA GOVERNANCE 101 

Employees should know how to handle sensitive data 

By Albert Otieno, aotieno@co-opbank.co.ke 

Companies need 

to take a hard 

look at their 

data protection 

practices and 

consider altering existing 

strategies or replacing 

them altogether to prevent 

future breaches. These 

efforts are embedded in 

an organization’s data 

governance systems and 

procedures. 

Data governance includes 

but is not limited to: 

• In-depth system and 

network security audits must 

be conducted periodically to 

ensure that only authorized 

items are running on the 

company’s systems and 

network. Such audits can 

be done by internal system 

auditors with surprise 

system audits from external 

system auditors. This also 

detects any anomaly in the system that 

may cause system malfunctions. 

• Organizations need to develop an 

authentication and authorization policy 

that leverages best practices and historical 

information to help determine which users, 

processes, and applications have access to 

sensitive information. This also involves 

reviewing system rights of users every now 

and again; For example, reviewing rights of 

users who were in an acting capacity when 

the incumbent resumes duty. Also locking 

users who proceed on leave and sending to 

IT department list of employees on their 

last day of work for deletion in the system. 

• Employees need to be trained on how 

to securely manage sensitive data, and 

receive regular updates as new policies or 

solutions are put in place. Also frequent 

reminder of employees on dangers of 

sharing login passwords, leaving their 

machines unattended helps a big deal. 

Sharing stories of who became victims of 

fraud due to sharing passwords instills fear 

in employees and ensures they avoid such 

vices. 

• A third-party corporate breach and data 

security expert should be hired to analyze 

the level of risk and exposure. This could 

involve hiring ethical hackers to try get 

through the company firewall and access 

data. It also includes onsite and offsite 

data backup to ensure information is 

securely stored. 

• Implementing a data privacy solution 

can be done at multiple 

points within the enterprise. 

Choosing the point of 

implementation dictates the 

work ahead and significantly 

affects the overall security 

model. Encryption modes 

include network-level, 

application-level, databaselevel, 

and storage-level. 

For example, to avoid 

third party accessing calls 

in teleconference, the 

organization can be sending 

encryption codes to the 

people required in the call as 

a login measure. 

• When considering a data 

privacy solution, there are 

clear choices regarding the 

modes of implementation. 

Data security technologies 

include encryption 

solutions, access controls, 

authentication policy 

management and access, data integrity 

technologies, data loss prevention 

strategies and technologies, as well as the 

traditional endpoint security solutions. 

Companies should embrace biometric 

login credentials as they cannot be shared. 

The above basic data governance 

strategies can go a long way to help and 

organization in its data integrity and 

prevent fraud and or hackers or system 

invasions. 

Organizations need to develop an 

authentication and authorization policy 

that leverages best practices and 

historical information to help determine 

which users, processes, and applications 

have access to sensitive information 


COVER STORY 

By FCPA Jim McFie, a Fellow of the Institute of Certified Public Accountants of Kenya 

WILL A MACHINE 

TAKE OVER YOUR JOB? 

Align your working style with the 

continuing evolution of technology 


COVER STORY 

Daniel Susskind, a lecturer 

in Economics at Balliol 

College in the University of 

Oxford and co-author of the 

book entitled “The Future 

of the Professions: How Technology 

Will Transform the Work of Human 

Experts”, believes that accountants and 

bookkeepers should align their ways of 

working with the continuing evolution 

of technology. The book was published in 

2015. The forecasts made in the book have 

not all been true; no set of forecasts ever 

is. But Susskind offers a glimpse into how 

accounting professionals will be working 

in the future. 

Uschi Schreiber, writing in 

“Knowledge Warton”, produced by the 

Warton Business School in the University 

of Pennsylvania predicted in November 

2015 that Artificial Intelligence (AI) 

is expected to replace 30% of business 

consulting resources by 2017. This may 

occur during 2017, but I highly doubt it. 

But accountants need to be aware of the 

fact that they need to keep up to date with 

changes in the use of technology. 

NPR, formerly National Public Radio, 

is a privately and publicly funded nonprofit 

membership media organization 

that serves as a national syndicator to a 

network of 900 public radio stations in 

the United States. On 21st May 2015, 

NPR asked a question on its blog: “Will 

Your Job Be Done by a Machine”? NPR 

pointed out that “machines can do some 

surprising things. But what you really 

want to know is this: Will your job be 

around in the future”? NPR claims to 

have the “definitive” guide. I was quite 

happy to find that NPR claims that 

university lecturers have a 3.2% chance of 

being automated. How does NPR know 

this? Some aspects of a job are easier 

to automate than others. It all depends 

on the tasks. NPR gives a number of 

graphs and one looks at the orange bars 

to see how “College Professors” compare 

with other professions. What about 

accountants? Accountants and Auditors 

have a 93.5% chance of being automated. 

For Tax Preparers, the number rises to 

a 98.7% chance of being automated. 

Financial analysts can rest comfortably 

for the time being: the chance of their job 

being automated is 23.3%: but technology 

changes so fast today, that even analysts 

may gain from reading the rest of this 

article. The NPR numbers suggest that 

the professional services industry must see 

It is well worth the 

time of accountants 

to think about 

how technology 

must be used to 

make themselves 

more productive; 

it is essential to 

the future bottom 

line. Establish 

which parts of 

your firm are most 

vulnerable to 

disruptive change 

how to manage disruption and transform 

itself so that it can continue to be relevant 

in the future. 

Firstly, one must acknowledge that 

there is unprecedented disruption 

across all industries. Take a look at the 

turnover rate of the Fortune 1000, the 

largest one thousand companies by 

market capitalization quoted on US 

stock exchanges. Over the last 40 years, 

starting from 1973, by 1983, about onethird 

of these companies had fallen off 

the list. By 2013, 70% of the companies 

were replaced by new ones. This pace of 

change will continue to increase: only 

a third of today’s major companies are 

expected to survive the next 25 years. 

These changes are driven by megatrends 

— disruptive global forces that have farreaching, 

interrelated consequences for 

business, economies, industries, societies 

and individuals. Most of us fail to grasp 

just how profound these disruptions are; 

by themselves and combined, they are 

driving massive transformational shifts. 

The acceleration of digital capabilities 

is a leading disrupter — fueled by the 

convergence of social, mobile, cloud, big 

data, artificial intelligence and the growing 

demand for “anytime-anywhere” access 

to information. Others include shifting 

global demographics; entrepreneurship 

and innovation, which are rapidly 

shrinking the gulf between mature and 

developing economies; and the migration 

of the economic centers of gravity from 

West to East and North to South. The 

combined power of today’s megatrends 

affects all industries and demands that 

professional service firms respond — not 

just to the impact on their clients, but also 

to how the trends affect the professional 

firms. This can include new competitors, 

subscription-based services, technology 

and analytics, new workforce dynamics 

and a growing need to leverage proven 

approaches quickly at lower costs. 

Clayton Christensen, a lecturer at 

Harvard Business School, coined the 

concept of “disruption”. He states that “If 

you are currently on the leadership team 

of a consultancy and you’re inclined to be 

sanguine about disruption, ask yourself: Is 

your firm changing (at least) as rapidly as 

your most demanding clients?” 

Accountants and consultants need to 

examine how we best disrupt ourselves. 

They need to examine a number of areas 

of their work. 

Imagine products and services that 

deliver fully automated corporate tax 

returns or smart artificial intelligence (AI) 

applications that crawl through company 

databases to answer natural language 

queries from executives on performance. 

To achieve that, financial consultants 

will need to build their organizations 

around asset-based or technology-driven 


COVER STORY 

intellectual property, data analytics working 

across clients, and their own portfolio of 

“ring-fenced” digital technology initiatives. 

Global firms are already investing heavily 

in offerings ranging from “iTunes-style” 

software repositories to cyber-security 

advisory practices. Disruption leads 

clients to rethink their own purpose and 

business models: there is greater demand 

for professional services firms to move into 

strategy consulting. In 2015 EY acquired 

data analytics firm C3 Business Solutions 

to support clients to move beyond basic 

data collection by providing a full life cycle 

of information management and advanced 

analytics around strategic goals. 

Today, the Big Four and larger 

audit firms are large organizations with 

thousands of employees around the 

world. They recruit at scale for a specific 

skill mix and sell their brand and talent 

to clients. As geographic borders fade 

through emerging technologies, firms 

must increasingly tap into mobile talent 

across markets and regions — and 

ensure that staff members have a deep 

understanding of both local customs and 

global expectations. Technology equally 

magnifies and complicates the importance 

of a global workforce by posing new 

challenges for historic staffing models. 

New technologies enable firms to engage 

with a mix of “own” and “rented” talent 

that is mobile and diverse, and capable of 

rapid changes in skill mix. Cloud-based 

freelance management systems like Work 

Market, for example, offer managers 

nimbler ways to work with independent 

contractors and freelancers, as well as with 

clients. As recruiting and retaining top 

talent becomes more competitive, firms 

must address the shifting needs of their 

workforces, especially the millennials 

among them. Millennials are likely to 

have spouses working full-time too. For 

a growing number of firms, that means 

focusing on “work-life integration” — 

encouraging flexible work arrangements, 

such as telecommuting, and compressed 

work weeks, along with a willingness to 

adapt daily schedules to give people what 

they need to succeed in both their careers 

and personal lives. 

Gartner, Inc. is the world’s leading 

information technology research and 

advisory company. Gartner claims that 

it delivers the technology-related insight 

necessary for its clients to make the right 

decisions, every day. In the area of computer 

technology, Gartner is a valuable partner 

to clients in more than 11,000 distinct 

enterprises. Gartner works with clients 

to research, analyze and interpret the 

business of IT within the context of their 

individual roles. Gartner is headquartered 

in Stamford, Connecticut, U.S.A., and 

has almost 9,000 associates, including 

1,900 research analysts and consultants, 

operating in more than 90 countries. With 

digital technologies quickly lowering 

the bar to the convergence of different 

industries, Gartner predicts 75% of 

disruptive product innovation will be 

inspired from outside the innovator’s 

industry sector in the near future. To 

capitalize on this convergence, firms need 

to stress an approach that crosses sectors 

and service lines — including focusing 

on clients’ needs with both broad and 

specialist expertise, agility and no internal 

barriers to putting the right teams together. 

For instance, as the health care industry 

becomes more connected to daily life 

through the growth of mobile and social 

health apps and solutions, professional 

service firms will increasingly blend talent 

and insight from across multiple sectors to 

offer health industry-specific deliverables. 

The same principle will apply to other 

sectors, too. To optimize convergence 

opportunities, there is a need to be as close 

as possible to clients, to be more agile in 

how staff are organized, and to explore 

beyond historical industry boundaries. 

To meet the multi-faceted challenges 

of disruption to clients — including big, 

complex problems beyond the capacity 

of a single organization — firms must 

forge more alliances that reach beyond 

traditional segments. 

There has been talk about joint business 

relationships between the Big Four firms 

and Google and Microsoft; ecosystems of 

co-dependent organizations and individual 

operators increasingly appear to be the 

most productive way to move forward and 

access the right skill mix. For example, 

Wikistrat has brought an entirely different 

approach to solving clients’ problems: it 

crowd sources solutions through an online 

global network of more than 2,000 small 

and medium-sized businesses. As these 

and many other examples make clear, the 

accountancy industry must answer some 

tough questions about what is essential 

to “own” and where we should consider 

building new ecosystems. 

These are just a few of the ideas that 

every firm should think about. Identifying 

the right priority is important: questions 

have to be asked openly and discussed 

widely; not only do better questions 

lead to better answers, they help deliver 

better results. It is well worth the time of 

accountants to think about how technology 

must be used to make themselves more 

productive; it is essential to the future 

bottom line. Establish which parts of your 

firm are most vulnerable to disruptive 

change. What are some potential 

opportunities outside what we think of 

as our own industry boundaries? How do 

we capture and leverage innovation as the 

engine for change? And as we think about 

what we need to change, ask yourself, are 

we changing fast enough? 


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Tel: 0722 481 504, 0733 597 050 


governance 

STRATEGIC 

DECISION MAKING 

A group member must act 

as the devil’s advocate 

By Ruth Gatwiri, ruthkgatwiri@gmail.com 

Even the best-designed strategic 

planning systems will fail to 

produce the desired results if 

managers do not effectively 

use the information at their 

disposal. Consequently, it is important 

that strategic managers learn to make 

better use of the information they have, 

and understand why they sometimes 

make poor decisions. One important way 

in which managers can make better use 

of their knowledge and information is to 

understand how common cognitive biases 

can result in poor decision making. The 

rationality of decision making is bound by 

one’s cognitive capabilities. Humans are 

not supercomputers, and it is difficult for 

us to absorb and process large amounts of 

information effectively. As a result, when 

we make decisions, we tend to fall back on 

certain rules of thumb, or heuristics, that 

help us to make sense out of a complex 

and uncertain world. However, sometimes 

these rules lead to severe and systematic 

errors in the decision-making process. 

Systematic errors are those that appear 

time and time again. 

They seem to arise from a series 

of cognitive biases in the way that 

humans process information and reach 

decisions. Because of cognitive biases, 

many managers may make poor strategic 

decisions. Numerous cognitive biases 

have been verified repeatedly in laboratory 

settings, so we can be reasonably sure that 

these biases exist and that all people are 

prone to them. The prior hypothesis bias 

refers to the fact that decision makers 

who have strong prior beliefs about 

the relationship between two variables 

tend to make decisions on the basis of 

these beliefs, even when presented with 

evidence that their beliefs are incorrect. 

Moreover, they tend to seek and use 

information that is consistent with their 

prior beliefs while ignoring information 

that contradicts these beliefs. To place 

this bias in a strategic context, it suggests 

that a CEO who has a strong prior 

belief that a certain strategy makes sense 

might continue to pursue that strategy 

despite evidence that it is inappropriate 

or failing. Another well-known cognitive 

bias, escalating commitment, occurs 

when decision makers, having already 

committed significant resources to a 

project, commit even more, even when 

they receive feedback that the project is 

failing. This may be an irrational response; 

a more logical response would be to 

abandon the project and move on (that 

is, to cut your losses and exit), rather 

than escalate commitment. Feelings 

of personal responsibility for a project 

seemingly induce decision makers to 

stick with a project despite evidence 

that it is failing. A third bias, reasoning 

by analogy, involves the use of simple 

analogies to make sense out of complex 

problems. The problem with this heuristic 

is that the analogy may not be valid. A 

fourth bias, representativeness is rooted in 

the tendency to generalize from a small 

sample or even a single vivid anecdote. 

This bias violates the statistical law of 

large numbers, which says that it is 

inappropriate to generalize from a small 

sample, let alone from a single case. In 

many respects, the dot-com boom of 

the late 1990s was based on reasoning 

by analogy and representativeness. 

Prospective entrepreneurs saw some of 

the early dot-com companies achieve 

rapid success, at least as judged by some 

metrics. Reasoning by analogy from a very 

small sample, they assumed that any dotcom 

could achieve similar success. Many 

investors reached similar conclusions. The 

result was a massive wave of start-ups 

that jumped into the Internet space in 

an attempt to capitalize on the perceived 

opportunities. The vast majority of these 

companies subsequently went bankrupt, 

proving that the analogy was wrong and 

that the success of the small sample of early 

entrants was no guarantee that all dotcoms 

would succeed. A fifth cognitive bias 

is referred to as the illusion of control, or 

the tendency to overestimate one’s ability 

to control events. General or top managers 

seem to be particularly prone to this bias: 

having risen to the top of an organization, 

they tend to be overconfident about their 

ability to succeed. The availability error is 

yet another common bias. The availability 

error arises from our predisposition to 

estimate the probability of an outcome 

based on how easy the outcome is to 

imagine. For example, more people seem 

to fear a plane crash than a car accident, 

and yet statistically one is far more likely 

to be killed in a car on the way to the 

airport than in a plane crash. People 

overweigh the probability of a plane crash 

because the outcome is easier to imagine, 

and because plane crashes are more vivid 

events than car crashes, which affect only 

small numbers of people at one time. As 

a result of the availability error, managers 

might allocate resources to a project with 

an outcome that is easier to imagine, 

rather than to one that might have the 

highest return. 

Techniques for Improving 

Decision Making 

The existence of cognitive biases raises a 

question: How can critical information 

affect the decision-making mechanism 

so that a company’s strategic decisions 

are realistic and based on thorough 

evaluation? Two techniques known to 

enhance strategic thinking and counteract 

cognitive biases are devil’s advocacy and 

dialectic inquiry. Devil’s advocacy requires 


governance 

the generation of a plan, and a critical 

analysis of that plan. One member of the 

decision-making group acts as the devil’s 

advocate, emphasizing all the reasons that 

might make the proposal unacceptable. In 

this way, decision makers can become aware 

of the possible perils of recommended 

courses of action. Dialectic inquiry is more 

complex because it requires the generation 

of a plan (a thesis) and a counter-plan 

(an antithesis) that reflect plausible but 

conflicting courses of action. Strategic 

managers listen to a debate between 

advocates of the plan and counter-plan and 

then decide which plan will lead to higher 

performance. The purpose of the debate is 

to reveal the problems with the definitions, 

recommended courses of action, and 

assumptions of both plans. As a result of 

this exercise, strategic managers are able 

to form a new and more encompassing 

conceptualization of the problem, 

which then becomes the final plan (a 

synthesis). Dialectic inquiry can promote 

strategic thinking. Another technique for 

countering cognitive biases is the outside 

view. The outside view requires planners to 

identify a reference class of analogous past 

strategic initiatives, determine whether 

those initiatives succeeded or failed, 

and evaluate the project at hand against 

those prior initiatives. According to 

Kahneman, this technique is particularly 

useful for countering biases such as the 

illusion of control (hubris), reasoning 

by analogy, and representativeness. For 

example, when considering a potential 

acquisition, planners should look at the 

track record of acquisitions made by other 

enterprises (the reference class), determine 

if they succeeded or failed, and objectively 

evaluate the potential acquisition against 

that reference class. Kahneman argues 

that such a reality check against a large 

sample of prior events tends to constrain 

the inherent optimism of planners and 

produce more realistic assessments and 

plans. One of the key strategic roles of 

both general and functional managers is 

to use all their knowledge, energy, and 

enthusiasm to provide strategic leadership 

for their subordinates and develop a highperforming 

organization. Several authors 

have identified a few key characteristics of 

good strategic leaders that do lead to high 

performance: (1) vision, eloquence, and 

consistency; (2) articulation of a business 

model; (3) commitment; (4) being well 

informed;(5) willingness to delegate and 

empower; (6) astute use of power; and (7) 

To place this bias in a strategic context, it 

suggests that a CEO who has a strong prior 

belief that a certain strategy makes sense 

might continue to pursue that strategy despite 

evidence that it is inappropriate or failing 

emotional intelligence. One of the key tasks 

of leadership is to give an organization a 

sense of direction. Strong leaders seem 

to have a clear and compelling vision of 

where the organization should go, are 

eloquent enough to communicate this 

vision to others within the organization 

in terms that energize people, and 

consistently articulate their vision until 

it becomes part of the organization’s 

culture. In the political arena, John F. 

Kennedy, Winston Churchill, Martin 

Luther King, Jr., and Margaret Thatcher 

have all been regarded as examples of 

visionary leaders. Think of the impact of 

Kennedy’s sentence, “Ask not what your 

country can do for you, ask what you can 

do for your country,” of King’s “I have a 

dream” speech, and of Churchill’s “we will 

never surrender.” Kennedy and Thatcher 

were able to use their political office to 

push for governmental actions that were 

consistent with their visions. Churchill’s 

speech galvanized a nation to defend itself 

against an aggressor, and King was able to 

pressure the government from outside to 

make changes within society. Examples of 

strong business leaders include Microsoft’s 

Bill Gates; Jack Welch, the former CEO 

of General Electric; and Sam Walton, 

Wal-Mart’s founder. For years, Bill Gates’s 

vision of a world in which there would be 

a Windows-based personal computer on 

every desk was a driving force at Microsoft. 


Public Policy 

POLICY AND 

FINANCIAL 

OVERSIGHT 

Enhancing the role of watchdog 

committees in oversight 

By FCPA Julius Mwatu, National Vice Chairman - ICPAK 

The topic above was the theme 

of the recently concluded 2nd 

Legislative Summit organised 

by the Legislative Arm of 

Government. 

ICPAK was invited as a discussant 

and was glad to represent the Institute. 

I found myself sharing the podium with 

two senators, the Auditor General and an 

MCA - (Member of County Assembly). 

Indeed, we all represented key oversight 

bodies in the country. 

We must appreciate the Legislature 

recognizing ICPAK as a key player in 


Public Policy 

Auditor General 

Edward Ouko 

financial oversight and accountability. 

The choice of discussants: ICPAK, 

Senate, Office of the Auditor General 

(OAG) and the County Assembly 

was a clear recognition that financial 

oversight and accountability is indeed a 

collaborative role. 

The discussions were highly 

structured and specific questions were 

directed to ICPAK. Before we delve 

into the questions and the responses 

thereof, let me start by saying that 

when Kenyans voted for the new 

constitution more than seven years 

ago, few understood its imprint on the 

governance structure of the country. 

Most will agree that, among many other 

provisions, the revolutionising aspect of 

the Constitution has been the devolved 

system of government. 

In the last four years, we have 

witnessed the benefits of adopting this 

system of governance. These range from 

improved access to basic services such as 

water and health, proximity to the local 

leadership and the general upgrade in 

infrastructure across the country. 

Equally, since Kenyans had not 

internalized the implications of this 

system, most of them did not know how 

influential the County Assembly would 

be to local development when they went 

to the polls in March 2013. However, 

as we prepare for this year’s General 

Elections, the position of Member of 

the County Assembly has attracted 

many candidates; reports in the media 

have quoted close to 45,000 candidates! 

This could be higher than anywhere else 

in Africa in terms of interest to Sub- 

National level legislative positions. 

Nonetheless, as contestants jostle for 

these positions, there is need for a candid 

discussion on the role of the County 

Assemblies. The Constitution of Kenya 

under Article 185 (3) provides that the 

oversight authority of a county is vested 

in, and exercised by its County Assembly. 

In addition, the Constitution under the 

same Article stipulates that the County 

Assembly may exercise oversight over the 

County Executive Committee and any 

other executive organs. Moreover, it is a 

statutory requirement of the Assembly to 

receive and approve plans and policies for 

the management & exploitation of the 

county’s resources; and the development 

and management of its infrastructure and 

institutions. These functions are further 

elaborated in the County Government 

Act, 2012 and the Public Finance 

Management Act 2012. Further, Article 

229 (8) elaborates on the oversight role 

by mandating the County Assemblies 

to consider the report by the Auditor 

General in respect of the financial affairs 

of a County and oversee implementation 

of audit recommendations contained 

there-in. 

Below is a synopsis of the discussions at 

the summit: 

What interventions has ICPAK 

proposed to support and partner 

with the watchdog committees in the 

County Assemblies to enhance financial 

oversight and accountability? 

It is important to underscore the role 

of ICPAK as laid out in the Accountants 

Act Cap 531. To promote and uphold 

public interest, it is our mandate to advise 

the Cabinet Secretary, National Treasury 

on financial accountability matters. 

We also strive to promote standards of 

professional competence and practice 

amongst our members. 

The specific interventions by ICPAK to 

support and partner with the watchdog 

committees in the Assemblies to enhance 

oversight and accountability include: 

• Partnership with Public Sector 

Accounting Standards Board (PSASB) 

to prescribe the standards of financial 

reporting. This led to adoption of IPSAS 

and development of financial reporting 

templates and guidelines creating 

uniformity in financial reporting. 

ICPAK has also seconded a staff to the 

PSASB secretariat to assist with the 

implementation of this agenda. 


Public Policy 

We must appreciate the Legislature 

recognizing ICPAK as a key player in 

financial oversight and accountability. The 

choice of discussants: ICPAK, Senate, 

Office of the Auditor General (OAG) and the 

County Assembly was a clear recognition 

that financial oversight and accountability is 

indeed a collaborative role. 

• In collaboration with OAG, we have 

developed capacity to private audit firms 

to enable them audit the public sector. 

OAG is now able to out-source audits 

of county agencies leading to timely 

audit reports for timely oversight review. 

ICPAK has, in collaboration with the 

Parliamentary Initiatives Network also 

developed a simplified reader’s guide on 

understanding the Auditor General’s 

report. The guide is meant to aid the 

oversight committees in reading through 

and understanding the Auditor General’s 

reports 

• ICPAK played a key role on 

establishment of Audit Committees at 

the Counties. The Institute did a survey 

on the effectiveness of Audit Committees 

which aided the development and 

subsequent gazettement of the guidelines. 

ICPAK continuously advocates for 

strengthening of the internal audit 

function and constantly lobbies for 

all Audit Committees to include an 

accountant who is also a member of 

ICPAK. 

• Through the Financial Reporting 

Excellence (FiRE) Awards, ICPAK 

in collaboration with PSASB, CMA 

& NSE, are able to do a joint financial 

reporting compliance review on counties. 

FiRe Awards recognise the best 

performers in terms of compliance with 

the standards and creates a third-party 

scrutiny of the compliance levels. It plays a 

complimentary role to the review exercise 

by the assemblies’ oversight structures. 

• ICPAK has also continuously 

partnered with a number of county 

governments in capacity building of 

accountants on technical matters. We 

do this at in-house level or through our 

externally provided CPD events. 

Is the oversight role of county 

assemblies inhibited or limited by the fact 

that they too are performing poorly with 

respect to prudent financial management 

in their respective institutions? 

The question is whether the firstgeneration 

county legislator (the MCA) 

has effectively delivered on the county 

financial oversight and accountability role. 

All over the world, it is increasingly being 

recognized that legislatures, both national 

and sub-national, have a critical role to 

play to strengthen economic governance, 

improve transparency in public finances 


Public Policy 

and ensure government accountability. 

It is fair to say that generally County 

Assemblies have tried but could have 

done better in discharging the oversight 

role on counties. County Assemblies 

have not effectively played the oversight 

role owing to legal, systemic as well as 

professional weaknesses. 

We have tried as a country to create 

fiscal parity among the three arms of 

government at the national level, and 

between the County Executive and 

County Assembly at the County Level. 

The law however, provides for a limiting 

funding structure by sitting the role of 

overall county budget under the County 

Executive thus creating a situation of 

financial dependency of all the county 

entities at the mercies of the county 

executive. It has been the case of many 

county executives applying budget and 

budgeting powers to curtail the operations 

of the County Assembly with a view to 

weakening the oversight function. 

Closely related is the aspect of 

separation of powers between the County 

Executive and the County Assemblies. 

Separation of powers principle is 

an important tenet of democracy. 

Montesquieu gave one of clearest 

statements of the separation of powers in 

1748: When the legislative and executive 

powers are united in the same person, or 

in the same body of magistrates, there 

can be no liberty… there is no liberty if 

the powers of judging is not separated 

from the legislative and executive… 

there would be an end to everything, 

if the same man or the same body… 

were to exercise those three powers. In 

Kenya, separation of power is manifested 

horizontally through the relationships 

between and among the legislature, 

executive and the judiciary. Similarly, one 

of the objects of devolution, Article.174 

of the Constitution, is to enhance 

checks and balances and the separation 

of powers. How do we make County 

Assemblies independent to enable them 

effectively play their oversight role and 

have the County Assemblies observe the 

principles of separation of power in order 

to entrench effectiveness in the discharge 

of the oversight role? 

It is therefore justifiable to state that 

the county assemblies have made subtle 

effort to oversight the affairs of the 

counties. The situation of the inadequacy 

of assembly oversight role has thus 

given rise to oversighting at the Senate 

level which in our view though a legal 

process, may not be timely and adequate. 

Oversight at the Senate level should be 

complimentary, not the primary oversight 

as is the case now. 

In my opinion, for effectiveness 

of the oversight role, the assemblies 

must entrench themselves as centres 

of oversight which would then dictate 

that they operate within a structure that 

respects the principles of independence. 

As such, there is need to rethink this area 

and create functional independence of the 

assemblies by ring-fencing their funding 

from control of the county executive. 

We need to continuously develop 

the capacity of the County Assemblies, 

specifically to bridge the knowledge 

gap on public financial management 

by oversight committees. The first step 

would for the electorate to appreciate the 

magnitude of the role of over sighting 

at the county and proactively assess the 

competence of the people they elect to 

the assemblies. There will also be need 

for continuous capacity building of the 

assembly members by equipping them 

with appropriate knowledge on matters 

of public sector management in general 

and in specific terms, public financial 

management. The role to capacity build 

the assemblies can be achieved through 

collaboration with stakeholders including 

professional bodies like ICPAK. 

The county assemblies must be made 

to understand that their effectiveness 

as oversight institutions is driven by 

observance of the principles of separation 

of powers. It is thus incumbent upon 

the County Assemblies to focus on their 

core roles of legislation, representation 

and oversight and limit to the extent 

possible, the desire to team up with the 

executive in discharging the executive 

role by engaging in any form of policy or 

programme implementation. By doing 

this, County Assemblies will fulfil their 

rightful mandate of being the legislative 

and oversight authority at the counties. 

How well are county assemblies 

performing in relation to protecting 

public resources, overseeing the 

utilization of public funds and value for 

money? 

This can be subjective, but we can say 

the performance of county assemblies 

have been both good and bad. Good 

because the assemblies have made good 

inroads; mainly in ensuring public 

participation and representation in 

budgetary approvals. There is at least 

some attempt. Also, holding executive 

officers in counties accountable, marked 

by impeachment motions or refusing to 

approve county budgets is not necessarily 

wrong; these actions, though unpopular, 

reinforce governance awareness and 

sound decisions in counties, especially if 

they are not politically instigated. 

The bad part is the visible compromise 

on the oversight role. There are blatant 

cases of conflicts of interest, with 

Members of County Assemblies’ 

(MCAs) getting involved in budget 

implementation instead of monitoring. 

MCAs have also been involved in graft 

cases across counties. 

In conclusion, it is worth noting that: 

• Some counties both at the executive 

and assembly levels have not established 

Audit Committees even after the 

gazettement of guidelines by the National 

Treasury on 15th April 2016. Relevant 

oversight bodies need to urgently take 

this one up. 

• Effective oversight is easily achievable 

if we work together as partners. We 

encourage collaboration between 

equivalent bodies or committees in the 

Houses (County Assemblies, National 

Assembly and Senate) and other levels 

oversight – ICPAK, OAG and the Office 

of the Controller of Budget. 

• County Assemblies will administer 

their oversight role if they are 

appropriately supported by the right 

professionals. We advocate recruitment of 

professional accountants – CPA(K)s and 

members of ICPAK. 

• Charity begins at home; MCAs will 

need to oversight themselves to be able to 

oversight others. 


WORK PLACE 

FIRED OR RETRENCHED? 

IT’S TIME TOCelebrate! 

In the market place the democracy of 

the wallet reigns supreme 

By CPA Wainaina wa Njeri, 1922stiras@yahoo.com 


WORK PLACE 

If you are in the category of those 

who judge books by their cover, then 

you may be forgiven for concluding 

that I am the most terrible sadist 

that ever lived, for daring to write 

about job losses as a celebration. You must 

be wondering: What is there to celebrate 

about; when a promising career has been 

cut short abruptly? What is there to 

celebrate about; when your savings are fast 

running out with no prospects of a new job 

in sight? What is there to celebrate about; 

when you cannot maintain your former 

lifestyle? What is there to celebrate about; 

when your friends appear to have taken 

off after learning of your predicament? 

What is there to celebrate about; when 

your spouse and children or fiancé have 

started showing signs of disrespect? What 

is there to celebrate about; with the piling 

unpaid bills and creditors’ calls? 

Take heart, that you are still alive to read 

this. 

If you are in the category of persons 

who have lost their jobs recently, as a 

result of organization re-engineering, 

restructuring, reorganization, business 

closure, and others, you may still be trying 

to find your bearing in the new reality. It 

really does not matter the reasons your 

former employer used to get rid of you, all 

that was PR, double speak that is typical 

of the political class. The most important 

outcome is that you are no longer 

in somebody’s payroll. The monthly 

economic-in-patient support pipeline has 

been cut off! 

As a normal human being, you could 

still be going through the motions of 

denial, bitterness with former employer 

and your bosses for stabbing you at the 

back, uncertainties of what the future 

holds for you, loneliness and depression 

and other concerns. You are not alone. 

Thousands if not millions of employees 

and entrepreneurs go through that painful 

experience every day. The very competitive 

nature of the business environment, 

coupled with intensified disruptive 

technological innovations and ever 

shifting consumer tastes and preferences 

continue to conspire to make employees 

‘endangered species’. Job security as we 

used to know it, that is, secure tenure, 

until death or retirement is no more. 

Wrong questions to ask 

You may doubt your God/Allah’s tender 

loving care for letting this misfortune 

befall his son or daughter. You must be 

wondering around why He has forsaken 

thee at the hour of need. Like many 

before you and many that will follow, you 

may be asking some silent and at times 

audible questions like: 

• Why me? 

• What is wrong with me? 

• Why this time? 

These are not only wrong but also illogical 

questions to ask. Indulging in them just 

prolongs your pains and delays your search 

for a new beginning in the new reality. 

When you pause the question: Why me? 

What do you have in mind? Who else 

would you have selected instead? Isn’t this 

selfishness of the highest order? When 

you are serving in your former job, there 

were millions who were jobless, did you 

use to ask your God why he had favored 

you so much? Did you use to ask the same 

question whenever you were going to the 

bank to receive your salary? 

When you ask yourself the question: 

What is wrong with me? 

This is the most ludicrous question to 

ask whenever you find yourself in certain 

unsatisfactory situations. It is the epitome 

of confessed self-doubt. 

When everything is panning out 

well, do you ever ask yourself the contra 

question: What is right with me? When 

you were being interviewed for your former 

post and you emerged victorious, did you 

go around wondering, what is right with 

me? When driving on a highway and you 

come across a fatal accident, do you start 

wondering around, what is right with me 

to be safe? Obviously not! 

The ‘what is wrong with me?’ Is a 

misguided question that leads to self-hate 

and destroys self-belief. By planting the 

seeds of self-doubt, you are unknowingly 

engaging is acts of self-sabotage that grow 

into fear of taking any action. 

When you ask yourself the question: Why 

this time? 

There is always the right time for 

everything. Everything happens at its 

right time. Flashback to your appointment 

date, you must have celebrated and tossed 

for the deserved job offer. You did not 

argue with the employer to delay the 

appointment for a moment. During 

interviews, when candidates are asked 

about the earliest reporting date, some 

say, ‘immediately’. When the shoe is on 

the other foot, the issue of why this time 

becomes redundant. Getting you on board 

as a new employee was the right time 

to ‘plant you as a seed’ in the company. 

Letting you go is the equivalent of ‘the 

right time to harvest’. 

For employers, the clock never stops to 

run from the time an employee is hired, 

nor does it stop running when one or 

several are ‘harvested’ or fired. When the 

thunderbolt of separation strikes, those 

left in shock wondering why this time 

are the ones whose life clocks stopped 

functioning on recruitment! 

Life happens in the now. And the 

now is always the right time to take the 

appropriate action. Like the birds of the 

air which know when and how to store 

food for the winter, smart and proactive 

employees should master the seasons 

of their employer’s environment. With 

discernment, nobody would be found 

unawares as the employer’s fortunes 

change. 

Being fired is normal 

If you think that the recent rounds of 

retrenchments in the financial sector 

as a reaction to the capping of interest 

rates on loans and deposits are merciless, 

insensitive, and untimely, just hold your 

breath, you ain’t seen anything yet! All 

those quoted companies that are issuing 

profit warnings and others that are 

bleeding fewer than billions of losses are 

also busy shedding thousands of jobs. 

Coupled with the often quoted statistic 

to the effect that 90% of micro, small 

and medium enterprises do not live to 

see their fifth birthday, you get the feel 

of corporate bloodletting. ‘Corporate 

massacres’ of investors’ dreams and career 

aspirations of millions of workers are as 

old as capitalism and entrepreneurship. 

The arsenal of mass destruction allegedly 

amassed by the disgraced Saddam 

Hussein or the mayhem by the blood 

thirsty terrorists’ pale in comparison with 

daily corporate massacres. 

Customers fire entrepreneurs 

Every day, thousands of businesses are 

registered, thousands open shop as 

others close down. Nobody risks money, 

time, energy and reputation in starting 

a business with the intention of failure. 

Everybody including social investors 

aspire to have thriving successful 

enterprises that are sustainable in the long 

haul. 


WORK PLACE 

In the market place, the democracy of 

the wallet reigns supreme. By exercising 

their freedom to choose, through their 

expenditure preferences, customers 

determine winners and losers. If an 

enterprise continuously gets fewer and 

fewer ‘votes’ in terms of shillings sales, they 

have no choice but to close shop. As kings 

and queens, customers are the ultimate 

employers. The last persons to be fired 

by customers are the owners of business, 

investors and shareholders. 

Employees fire themselves 

When someone is fired, one feels very 

bitter towards the employer. Such 

employers are perceived to be uncaring, 

bloody sucking capitalists, heartless, mean, 

exploitative, and insensitive to one’s family 

commitment, high unemployment rates, 

or outright sadists. 

What many employees forget, and 

conveniently so, is that employers are not 

in charity to create jobs. One can state 

authoritatively that there is no employer 

in the whole world who starts a business 

with the primary objective of creating jobs. 

Employees are hired to support in the 

implementation of the founder’s dreams. 

As a factor of production, an employee 

comes in at a cost; the remuneration. For 

the employer-employee relationship to 

make business sense, the market value of 

an employee’s contribution must be higher 

than the payroll cost. Any time there is 

some disequilibrium to the disadvantage 

of the employer, the employee becomes a 

loss making investment that is disengaged 

or decommissioned or discontinued or 

fired at the earliest convenient time! If 

left unattended for a prolonged period, 

‘corporate bleeding’ (losses) just kills the 

patient (the business). Only a fool would 

leave a bleeding patient unattended. 

Employees determine 

performance and rewards 

Every employee is 100% responsible for 

their contribution. Every employee has 

the free will and the freedom to choose 

what to contribute during the 8am-5pm 

day. Nobody is a slave. Nobody can cheat 

on measurable performance. When the 

going gets tough and a company starts 

struggling to pay bills because of declining 

sales, owners of business have to move 

with speed to save the ship from sinking. 

For the ship to land safely in the ‘Nineveh’ 

of survival, some ‘Jonahs’ have to be 

thrown out. The choice of Jonahs is pretty 

easy, namely, the poor performers. Never 

be cheated, like the shrewd soccer club 

managers who pay a premium to get the 

Messis’ and Ronaldos’ in their teams, every 

employer desires to retain superstars in 

their teams. The laggards, the late comers, 

the whiners, and all the other miscreants 

are quickly shown the ‘red’ cards-fired. 

Like the Jonah’s story in the Bible 

( Jonah has been called to go preach the 

good news in Nineveh. In disobedience, 

he took a detour in a ship. The vessel 

experience serious turbulence in the seas. 

To avoid ship wreck, the captain called 

all present to pick some secret ‘ballot’. 

Jonah picked the NO and he had to be 

thrown out into the deep sea as the rest 

continued with the journey), a company’s 

future cannot be jeopardized to save 

careers of a few employees. A conscious 

self-enlightened decision has to be made 

pretty fast to save the founder’s dream by 

separating saboteurs. If you are hired to 

support somebody’s dream and you try to 

sabotage it through non-performance, the 

dreamer has a right to show you the exit 

door. In any case you will have preselected 

yourself by your results. Results do not 

discriminate. A cow that gives ten litres of 

milk cannot complain when her feed ration 

is made commensurate to performance 

compared to one that gives thirty litres. 

It’s pure common sense. 

Therefore, being bitter with the 

employer for firing you is being dishonest 

with yourself. You are still entertaining this 

dishonesty in carrying out an assessment 

of your worth or contribution during 

your working days. You knowingly or 

unknowingly signed your dismissal or the 

‘RTS’ (return to sender) letter the moment 

you started earning your employer lesser 

revenues than what it cost to maintain 

you in the payroll. That is the moment 

your salary is GREATER THAN your 

contribution in terms of results (income) 

you get fired or you are blacklisted for 

retrenchment, if the ‘corporate pain 

persists’ , to paraphrase drugs adverts that 

caution patients to see the doctors if pain 

persists. 

Attitude of gratitude 

Somebody who gave you an opportunity to 

serve, gave meaning to your life, advances 

your career, and more importantly pays 

bills for months or years, surely deserves to 

be appreciated. If you honor your parents 

or guardians for nurturing you to be who 

you are, the more so you should honor your 

former employer for providing financial, 

relational and network nourishment. There 

is no doubt you have grown, career wise, 

financially, and even physically. You should 

celebrate the wonderful time you had with 

your former teammates. 

A heart of gratitude and thanks giving 

enriches your life and is a great health 

booster. Bitterness is corrosive, wrinkles 

your face and shortens your life. Why 

engage in life threatening acts over the 

past that you cannot change? You have 

lost a job; money is in short supply, so why 

use it on things that can be avoided like 

medical bills? 

As for me and my house, I am forever 

grateful and indebted to all my former 

employers; all ten of them for giving me an 

opportunity to serve, earn money and make 

friends. I have been fired six times (once as 

an employee and five times as a founder 

of businesses that failed.) My failures were 

great lessons in my entrepreneur journey. 

Being fired, the best thing in 

your life 

Guess what, being fired could be the best 

thing in your life. Remember it could have 

been worse, for example, losing your job 

while on duty, got serious injuries at work 

or other terrible things. 

Being fired could be a wakeup call 

from somebody who really cares about 

you. Could be you have stagnated in 

one position, you have been ‘passed’ over 

promotion for reasons you could not 

understand (the truth is, your results were 

not satisfactory), the job was no longer 

challenging or meaningful but you lacked 

the guys to move on among other reasons. 

Could be your employer is facing a bleak 

future for failure to innovate and adapt to 

disruptive technologies. In such a scenario, 

being selected for retrenchment with 

some package may turn out to be the best 

decision if the company goes bankrupt and 

others leave with nothing. 

Accept the new reality 

This is the time for you to pause, be 

grateful for all the years you have worked 

and figure out what you can do. It is a 

time to reflect on your life. It time to reengineer 

and re-imagine your next life. 

You have many things working in your fair 

unlike your former college buddies you 

may still be languishing at home jobless. 

You have valuable experience, networks, 

some working capital and time in your 

favor. Build on your strengths. Move on! 


WORK PLACE 

Wherever, you find yourself, 

it is never too late, and like 

they say, there is always 

room for improvement. 

Whatever your level of 

current income, ensure you 

spend wisely (budget), Save 

regularly and invest smart 

Spending time in at the grave side 

your former titles, carpeted offices, free 

newspapers, club membership, official 

vehicles, holidays and other trappings 

of power will just delay your healing 

process and deplete your funds. 

Accept that the buttered loaf of 

bread has moved. The new reality is that 

you are jobless but heavy laden with 

experience, networks and determination 

to reinvent your life. Arise and rise. 

Prove to your detractors that the reasons 

that got you fired were a mere detour in a 

great life that is ahead of you. You spent 

time executing your employer’s dreams. 

This is your opportunity to execute your 

dreams and hire others to support you. 

The distance between your dreams 

of a life of greatness and significance 

is ACTION. Wake up from the bad 

dreams of losing your last job, that was 

not your destination, it was just one of 

the many stations in a life of greatness 

that is ahead of you. 

Dream it, 

Frame it, 

Act it, 

And become successful. 


WORK PLACE 

IS 

SELF EMPLOYMENT 

BETTER? 

Can you handle it? 

By Dauglas Muhati, likhaya.d@gmail.com 


WORK PLACE 

Does this thought ever come 

to your mind anytime you 

are meditating on your life. 

Maybe yes; maybe not; But 

just how does it feel to be 

your own boss? Let’s see… 

Self-employment is that situation where 

a person works for himself instead of 

working for someone as an employee 

being paid a salary at the end of a specified 

interval. A self-employed person will earn 

his income through profitable operations 

from trade or a business that they operate. 

Often seen as one and the same, an 

entrepreneur and a person who is selfemployed 

may share the similarity of 

owning a business, but beyond that they 

begin to stray down vastly different paths. 

Defined below, we can see where these 

two roles intertwine as business owners. 

But when we take a deeper look, we see 

that the major difference is that the selfemployed 

are owners of the business, 

whereas an entrepreneur simply operates 

a business. 

Self-Employed - Working for oneself as 

a freelancer or the owner of a business 

rather than for an employer. 

Entrepreneur - A person who organizes 

and operates a business or businesses, 

taking on greater than normal financial 

risks in order to do so. Typically the 

majority of business owners fall under the 

category of “self-employed”. They begin 

with a skill or a set of skills and find that 

the opportunity to make money arises. 

This is where the crash course in business 

begins. From insurance and licenses to 

accounting and marketing, soon many 

owners are smothered in the infinite 

amount of hours required to keep the 

business alive. While many individuals 

are still the “owners” of the business, they 

typically carry all the responsibilities of 

an employee. This combination of duties 

can create many limitations on the success 

of the business. Essentially working 

anywhere from 2-10 jobs often the selfemployed 

are overworked, underpaid and 

lucky to get a few days off in a year. On the 

other hand an entrepreneur is all about risk 

and reward. They think outside the box for 

the best ways to succeed and move on to 

their next venture. While the businesses 

might be of interest it is really the passion 

of the start-up and leading something to 

success that drives them every day. Often 

this can lead to selling the business or 

moving on to start a new one once they 

have everything set for the future. 

With many qualities overlapping, where 

do you see yourself categorized below? 

Entrepreneurs 

•Flexible 

•Creative 

•Confident 

•Passionate 

Self-Employed 

•Hard Working 

•Goal Oriented 

•Quality Conscious 

•Good Communicator 

Entrepreneurship means different things 

to different people. Some imagine tech 

geniuses with Silicon Valley startups, 

while others picture small business owners 

opening up their shop doors on Main 

Streets. Ultimately, entrepreneurship 

encompasses these and many other 

business ventures that share a commitment 

to turning an idea into a profitable business. 

People who are thinking about starting 

their own businesses should understand 

that successful entrepreneurship involves 

much more than having a great concept, 

said Elizabeth Amini, CEO and cofounder 

of Anti-Aging Games LLC, a 

company that develops online games to 

train memory and focus, and an adjunct 

professor at the University of Southern 

California’s Marshall School of Business. 

“Most people think being an 

entrepreneur is all about coming up with 

an idea, but that’s just one part,” Amini told 

Business News Daily. “It’s also important 

to know, right from the start, how you will 

reach interested customers in an effective 

and affordable way.” 

“Entrepreneurship is much broader 

than the creation of a new business 

venture,” added Bruce Bachenheimer, a 

clinical professor of management and 

executive director of the Entrepreneurship 

Lab at Pace University. “At its core, it is a 

mind-set — a way of thinking and acting. 

It is about imagining new ways to solve 

problems and create value.” 

Who are entrepreneurs? 

There are no specific traits that every 

entrepreneur shares, but many do possess 

a few common characteristics. In another 

Business News Daily article, Jenny Ta, 

founder and CEO of social commerce 

platform Sqeeqee, said; successful 

entrepreneurs are typically confident and 

self-motivated. They are tenacious but 

understand their own limitations. Instead 

of following the status quo, entrepreneurs 

have a healthy disrespect for established 

rules, and often set out to do things that 

others may not have the courage to. They 

are also willing to fail and start over again, 

taking the lessons they’ve learned to create 

something new and improved. 

MJ Gottlieb, co-founder of consulting 

firm Hustle Branding and author of “How 

to Ruin a Business Without Really Trying” 

(Morgan James Publishing, 2014), said it 

takes a special kind of person to become a 

successful entrepreneur. “An entrepreneur 

is someone who can take any idea, whether 

it be a product and/or service, and have the 

skill set, will and courage to take extreme 

risk to do whatever it takes to turn that 

concept into reality and not only bring it to 

market, but make it a viable product and/ 

or service that people want or need.” 

Research shows that Africans, particularly 

Kenyans are increasingly choosing 

entrepreneurship over employment. A 

study by one of the reputable firms revealed 

that nearly 65 percent of workers would 

rather be an entrepreneur or independent 

employee than work in an office. 

Tips for aspiring 

entrepreneurs 

If you’re ready to enter the world of 

entrepreneurship, here are a few important 

tips to keep in mind; 

Learn from others’ failures 

Rather than admiring the small percentage 

of businesses that grow to become 

successful, study those that end up failing. 

Gottlieb said this research will greatly 

increase your chances of success, because 

most companies have made common 

mistakes that have led to their demise. He 

said that having the humility to learn from 

the mistakes of others before making them 

yourself is the secret to success. 

Make sure this is what you 

want 

Because entrepreneurship entails so much 

hard work, it is critical to ensure you’re 

following the right path, Amini said. “If this 

is something you really want, then think 

long-term, and be persistent,” she said. 

“The vast majority of great entrepreneurs 

failed multiple times before they finally 

found the business idea that took off and 

brought them success.” 


WORKPLACE 

KCB’s mentorship programme 

“LION’S DEN” panel of investors 

Solve problems 

“Entrepreneurs should always be in search 

of problems to solve, and not the other 

way around”, said Ajay Bam, a lecturer in 

entrepreneurship and innovation at the 

University of California, Berkeley’s Haas 

School of Business. In other words, “they 

should not start with a solution looking 

for a problem,” he said. 

Be passionate 

“Successful entrepreneurs are driven 

primarily by a need for achievement 

and the desire to make a meaningful 

difference”, Bachenheimer said. “The 

most important traits are passion and 

persistence, but these must not be confused 

with arrogance and stubbornness,” he said. 

Get advice from those who have done it 

Amini advised would-be business owners 

to find mentors who are successful, as well 

as read books, network with people they 

admire and look into great educational 

programs to help them throughout the 

process. You can borrow a leaf from 

KCB’S mentorship programme “LION’S 

DEN” 

Let us now look at some of the 

advantages and disadvantages of selfemployment 

As an employee you will always be 

governed by someone superior to you 

and would always be commanded around. 

Self-employment is for people who hate 

to be bossed around and are talented 

enough to generate a salary by selling 

their expertise independently. 

Let us look at some of the benefits of 

self-employment; 

1. You are your own boss: 

Do you hate that some lame person who 

is not as talented as you are governing 

you? Do you hate the feeling of being 

told what to do and how to do it all the 

time? Well it is time for you to start your 

journey from a salaried job to becoming 

self-employed where you are your own 

boss. You would be more pleased with 

what you do and hence lead a content life 

personally. It is important to be happy and 

content with what you do that helps you 

lead a life with luxury. 

2. More opportunities to earn 

money: 

Going self-employed, you can earn more 

than what you did when you were a 

salaried person as the company deductions 

are not included in your earnings and 

you get what you receive. You can start 

with the basic charges and slowly raise 

your rates based on the positive reviews 

that you receive for your work. The 

opportunities will knock on your door if 

you can give your clients what they want. 

It is important to build good reviews as it 

puts an extra weight on the rates that you 

are quoting. 

3. There is less investment: 

You can save a lot of your daily expenses 

based on the work that you choose. 

You save on gas as you work from the 

comfort of your home thus avoiding the 

lengthy commutes to your workplace 

like you used to. Getting up early for 

meetings and hence going on expensive 

lunch outs can also be avoided and you 

can get to have a healthy and delicious 

home cooked food. Leaving your kid 

behind with a day care and wondering 

how your kid’s day has been could be 

taking an emotional toll on you. One of 

the benefits of being self-employed is 

that you can divide time for your family 

and profession without taking anything 

else for granted. You can also save on the 

expensive day care expenses that add on 

to your daily needs. 

4. Variety of projects that 

you can execute: 

When you are working in a corporate 

firm, your roles and responsibilities 

are defined and you are asked to work 

within a framework. The structure does 

not allow you to explore other options 

that are creative and innovative as you 

need to stick to the designed solution as 

agreed upon by the seniors and clients. 

Being a freelancer you can select new 

challenging projects pushing yourself 

to innovate and evolve at every step and 

hence, giving you the job satisfaction. 

5. Drama Free environment: 

We always love to work in a team as 

we get the responsibility divided and 

hence also the work pressure. But does 


WORKPLACE 

working remotely and being isolated from 

everyone sound really bad? You would be 

free from the loudspeakers of your team 

who are continuously over the phone 

talking out loud. You would not have 

to listen to the music during your work 

hours as your colleague plays on them on 

his or her phone. Your work friends will 

still be your friends no matter where you 

go or what you do. 

6. No worries about the sick 

leave: 

If you are ill then you don’t have to worry 

about whether you would be getting 

your sick leave or not. You can inform 

your clients regarding the state of your 

health and take a day off from your work 

or resume few hours later. You no longer 

have to beg or give long explanations on 

why you were on leave and prove your 

point on the fact that you were really ill. 

You have the liberty to choose your own 

health insurance based on your needs and 

not what your company has decided for 

you. 

7. It is your work area: 

It is your area and your call on how 

you want to decorate it. You can put up 

photographs of people or places you like. 

You can have fengshui items on your desk. 

You can use dual monitors if you want or 

go for a single one, it is completely on 

you. You can keep a standing desk, sitting 

desk just go for it. It is your work area and 

you can decorate it how you want, not 

worrying about the company norms and 

what your colleagues will think. 

8. You want new equipment 

go get it! 

In a workplace to get new equipment 

for your project you need to go through 

a proper channel where you need to 

apply the requirement in the system and 

support that requirement with needed 

documents justifying your request. Being 

a freelancer you don’t have to get into this 

channel of bureaucracy, all you have to do 

is get up, go to the market and buy the 

needed equipment for your projects. No 

worries about the approval process and no 

more waiting time. 

9. No Dress code: 

If you are not a shirt, pant and tie kind of 

a guy then this is one of the advantages 

for you to work as a freelancer. Same goes 

with the female workforce. You don’t 

like wearing formals? then you would 

be happy to work in your pajamas at the 

comfort of your home or work in funky 

outfits that define you when you work 

from any place other than your home. The 

only time you would have to be dressed 

up as corporate employee would be when 

you are attending a meeting with your 

clients. 

10. It is your time and hence 

your schedule: 

You know yourself best and would love 

to have the flexibility of working based 

on your time rather than the time set by 

someone else. If you are not a morning 

person, then you set your schedule based 

on when you get back and work with an 

extra zeal and focus. You can ensure that 

you are able to connect with everyone 

on your project rather than missing a 

meeting because you got up late! It is 

your schedule hence, making you more 

responsible regarding your planned day! 

11. You are a valued person 

now: 

When you are working in a corporate 

setup there are many people that you 

are competing against in terms of 

recognition and at times your work and 

efforts get ignored because some other 

guy took the share of your cake. Being 

a freelancer, that will never happen as 

you would be working on the projects 

and the clients would appreciate your 

work giving you the full credit and share 

of recognition. Your efforts will not go 

unnoticed and this will give you an extra 

boost to work harder for the upcoming 

projects. 

12. You choose your 

customers: 

You can choose for the customer you 

want to work for and avoid some senior 

guy sitting on your head forcing you to 

work on a project that you don’t want to. 

If you are not happy with the attitude of 

a client then you will be responsible as 

you chose to work with him on a project. 


WORK PLACE 

The responsibility to choose the right 

clients is on you as a freelancer and not on 

anyone else. Hence, you need to be careful 

when you are bidding for your project and 

signing the contract. 

Demerits or Disadvantages of Self- 

Employment: 

Every setup comes with advantages 

that we discussed above and also with 

disadvantages. As an individual we need 

to take a call and move on the path of 

self-employment accepting all the pros 

and cons of the setup. Let us now look 

at some of the disadvantages of the selfemployment. 

1. Paying more taxes: 

Even if you’re a sole person working as a 

freelancer you would realize that freedom 

from corporate world does come with a 

price. You would end up paying a little 

more taxes than you used to as a corporate 

employee. You would be responsible for 

filling your taxes on time. 

Entrepreneurs should always be in 

search of problems to solve, and not 

the other way around”, said Ajay Bam, 

a lecturer in entrepreneurship and 

innovation at the University of California, 

Berkeley’s Haas School of Business. In 

other words, “they should not start with a 

solution looking for a problem 

2. No more paid leave: 

There will be no more paid leave for you. 

As a freelancer if you are working on 

daily requirements and have taken a few 

days off, then there is a possibility of you 

missing out on those requirements and 

hence on the monthly payment. You need 

to keep in mind that as a freelancer there 

is nothing called paid leave. 

3. Multitasking all the time: 

Since you are working as a freelancer, you 

will have all the responsibilities of getting 

the project, executing it and closing it. 

You would be solely responsible till you 

start employing other freelancers or 

employees to your business. 

4. Unsteady Pay: 

There is no guarantee that every month 

you would be getting a minimum of say 

1000 bucks. Some days or months you 

will earn exceptionally well while you can 

also end up with no payment at all as you 

had no projects in hand. You need to be 

ready to face the unsteady pay structure of 

being a freelancer and plan your finances 

accordingly. You need to be prepared for 

the month where there would be minimal 

payment or no payment at all. 

5. You are Socially isolated: 

Being on your own comes at a price 

of being socially isolated. If you are 

working alone then there would be no 

social gatherings like that of corporate 

jobs. There will be no social contacts or 

friends that you could make through your 

workplace. It might get a little lonely after 

a while and you might begin to miss the 

charm of working with a huge team and 

the celebrations that come with it when 

you reach the milestones in your project. 

Working alone might achieve your 

milestone but celebrating with yourself is 

not that inviting and exciting! 

6. Distractions at home: 

Before getting comfortable working from 

you, you might want to think about the 

various distractions that come with it. 

If you have children then their running 

around and the urge to play with you 

might distract you from your work. Your 

helpers making the noise of cleaning and 

other activities they do. Your door bell 

ringing like an alarm after every hour with 

some other person trying to get into your 

way of work can also lead to distractions. 

You might end up solving your personal 

issues more than your work issues. 

What do you need to know 

and have, now that you are 

self employed? 

You’ve grown tired of commuting to a job 

where you sit in a cubicle and do someone 

else’s bidding. You’ve got a better idea, 

you can build a better mousetrap, you 

know you have the knack of being in 

the right place at the right time, and so 

you’re thinking of self-employment. But 

how do you determine if this is a pipe 

dream or an idea worth pursuing? 

Can you handle it? 

Whether you’re running your own 

business or working as an independent 

contractor, you’ll soon realize that 

working for yourself isn’t just another 

job, it’s a way of life. Are you someone 

who likes a nine-to-five routine and 

collecting a regular paycheck? When 

you’re self-employed, you must be 

willing to make sacrifices for the sake 

of the job. You’re going to work long 

hours, which means that you won’t have 

as much time as you used to for family 

or leisure activities. And if the cash flow 

becomes a trickle, you’re going to be the 

last one to get paid. Can you get along 

well with all types of people? Being 

self-employed is all about managing 

relationships--with your clients or 

customers, your suppliers, perhaps with 

your employees, certainly with your 

family, and probably with your banker, 

lawyer, and accountant, too. If you are 

the type who wants to be alone to do the 

few things that you’re good at, then you 

should do that--for someone else. Are 

you a disciplined self-starter? 


WORK PLACE 

Being self-employed means 

that you are your own boss 

There may be days when you’ll have to 

make yourself sit at your desk instead of 

going for a long lunch, or (especially if 

you work out of your home) place those 

business calls instead of reading the 

newspaper. 

Finally, do you enjoy wearing many 

hats? Depending on your line of work, you 

may be involved in handling marketing 

and sales duties, financial planning and 

accounting responsibilities, administrative 

and personnel management chores--or all 

of the above. 

Your dreams come true 

Think about how great it will feel to get 

paid to do what you love to do anyway. 

If you’re working for yourself, chances 

are you’ll be doing work that you enjoy. 

You’ll get to pick who you’ll work for 

or with, and in most cases you’ll work 

with your customers or clients directly- 

-no go-betweens muddying the waters. 

As a result, you may have days when it 

hardly feels as if you’re working at all. 

Such harmony between your working life 

and the rest of your life is probably what 

attracted you to self-employment in the 

first place. 

Being your own boss means 

you’ll be in control of the 

decisions affecting your 

working life 

You’ll decide on your business plan, your 

quality assurance procedures, your pricing 

and marketing strategies--everything. 

You’ll have job security; you can’t be fired 

for doing things your way. As you perform 

a variety of tasks related to your work, 

you’ll learn new skills and broaden your 

abilities. You’ll even have the flexibility 

to decide your own hours of operation, 

working conditions, and business 

location. If you’re working out of your 

home, your start-up costs may be reduced. 

You’ll also experience lower operating 

costs; after all, you’ll be paying for the 

rent and utilities anyway. If the location of 

your work isn’t important (perhaps you’re 

a freelance writer or a consultant), you 

can live wherever you want. At any rate, 

if you work at home, you’ll greatly reduce 

your daily commuting time and expense. 

If all goes well and you’re making money, 

chances are you can make more than you 

did working for someone else. And since 

you’re working for yourself, you may not 

have to share the proceeds with anyone 

else. The fruits of your labour will be all 

yours, because you own the vineyard. 

On the other hand 

When you’re self-employed, particularly 

if you’re starting your own business, you 

may have to take on a substantial financial 

risk. If you need to raise additional 

money to get started, you may need 

a cosigner or collateral (such as your 

home) for a loan. Depending on 

how much or little work you can 

line up, you may find that your cash 

flow varies from a flood to a trickle. 

You’ll need a cash backup so you can 

pay your bills while you’re waiting for 

business to come in or waiting to be 

paid for completed work. Since you’ll 

have to pay your own creditors first, 

this means that sometimes you may 

eat cereal instead of steak. Remember 

that you’re not making any money if 

you’re not working. You don’t have 

any employer benefit package, which 

means that it’s going to be hard for 

you to go on vacation, take a day off, 

or even stay home sick without losing 

income. It also means that you’ll have 

to provide your own health insurance 

and retirement plan. Remember, too, 

that you can choose your clients or 

customers, but you can’t control their 

expectations or actions. If you don’t 

come through for them, or if you do 

something that offends them, you 

might not get paid for your work. 

Because you’re working for 

yourself, you’re going to have to 

take care of everything yourself, 

from figuring your taxes to wiping 

your office window panes. You’ll 

probably need some new skills, such 

as bookkeeping and filing tax returns. 

You can learn to do these things 

yourself--many software programs 

are designed just for this market--or 

you can hire others (an accountant) 

to take care of them for you. If you’re 

not careful, however, you may find 

that you’re spending more time on 

the business of being in business for 

yourself than you are on the work that 

attracted you to self-employment in 

the first place. 

The bottom line 

If you can work long and hard, 

tolerate risk and stress, cope well with 

potential disaster and failure, and 

work well alone and with others, then 

perhaps self-employment is right for 

you. If not, then perhaps you should 

keep that job in the cubicle. 

The author is CEO/founder of Livetech 

Business Solutions; an ICT company. 


INSPIRATION 

THE VIRTUES OF HOPE 

An assessment of our ability to survive now and 

into the future and a celebration of Easter 

Never deprive someone of hope; it might be all they have - H. Jackson Brown, Jr. 

By Angela Mutiso, cananews@gmail.com 

Hope is broadly defined as a 

feeling of expectation and 

desire for a certain thing to 

happen. It is a powerful tool 

in our lives. 

In this feature, we look at hope broadly; 

this is a time when Easter is celebrated. 

And it is commemorated with hope, faith 

and love. 

Discussing hope in desiringgod.org, 

staff writer Marshall Segal comes up 

with an interesting subject matter titled; 

Your Hope Is as Alive as Jesus. In his indepth 

analysis of hope, Segal states that 

hope can be a very dangerous thing. Your 

greatest wounds may be tied to unrealized 

dreams or unexpected disappointments. 

Unfortunately, the daily and worldly hopes 

we know in this life create some category 

confusion when it comes to our hope in 

Christ. 

Segal observes that Peter’s first letter 

is written to Christians in conflict. Since 

following Jesus, they have not found the 

peace or safety or prosperity or relief that 

they might have expected. This world 

and their lives continue to be marred by 

inconvenience, disease, disappointment, 

persecution and even death. They’re 

experiencing trials of every kind (1 

Peter 1:6). Some are enduring sorrow, 

while suffering unjustly (2:19). They are 

receiving evil, being reviled (3:9) and 

slandered (3:16). They were maligned (4:4) 

and insulted (4:14). And these sufferings 

were common “throughout the world” 

(5:9). There’s suffering on every page of 

the book, and that is the scary, uncertain, 

painful context into which Peter speaks 

hope. 

The first note Peter strikes is one of 

praise. Blessed be the life-giving, deathdefying, 

overpowering God of absolutely 

miraculous mercy. If you believe and 

follow Jesus, you will face really difficult 

— maybe even more difficult — things in 

this life, but the God who raises the dead 

is your God and he’s with you. God has 

given you a new, true, full life through his 

Son, Jesus. And the life he gives is filled 

with an unconquerable, unquenchable 

hope. 

Hope That Always Comes True 

He goes on to say that God has caused us 

to be born again to a living hope, a hope 

which Peter makes deliberately distinct 

from a lot of the other hopes we’ve known. 

We hope all the time, and we’re often 

disappointed. I hope I get an A on that 

test. I hope they hire me. I hope she says 

yes. I hope we can get a new car. I hope 

he remembers our anniversary. Our hopes 


INSPIRATION 

don’t always come true. 

This is not the kind of hope we have 

in God. Our hope in God is unlike any 

we’ve ever had, and that is because there 

is a moment in history that sets this hope 

apart from any other. Peter writes, “… 

he has caused us to be born again to a 

living hope through the resurrection of 

Jesus Christ from the dead…” The tomb 

could not hold the living, breathing, 

scarred, but victorious body of our Jesus. 

The man who claimed to be God, who 

committed no sin (2:22), and who died 

before hostile crowds, appeared again, 

just days later, before crowds bearing the 

wounds of the cross, but demonstrating a 

power and victory over it. He is alive. And 

here in verse 3, Peter connects this life, the 

God-man’s life after death, witnessed by 

hundreds, celebrated at Easter, with your 

hope. Believer, if Jesus lives, you will live; 

God established and secured your hope 

when he raised his Son. Therefore, your 

hope is as alive as Jesus…asserts Segal in 

this fascinating piece. 

Meanwhile, writing about how to 

create a more hopeful life in life hack, 

Maria Hill says hope is our emotional 

engine, the basis for engaging with life. 

In a spellbinding feature, Hill says hope is 

directly related to our sense of possibility; 

the greater our perception of possibilities, 

the greater our hope. 

How do we experience hope? 

Hope is what we feel when we think 

that life is worth living, that our work is 

worth doing. Hope is what we have when 

we have a positive relationship with our 

existence. It is the deepest of the three 

emotions. Happiness and optimism 

cannot exist without hope, but hope can 

exist without happiness or optimism. 

Hope is our energy, our fuel for living, so 

people will go to great lengths to create it 

and protect it. Without it you lack energy 

to engage with life. Hope is so essential 

that a negative childhood can reduce 

the brain’s ability to create dopamine 

which may lead to addiction because 

drugs increase dopamine levels in people 

who do not have the ability to create it 

naturally. Hope has to be real. It has to be 

based on something tangible. We can fake 

optimism and pretend to be happy but 

deep down inside, we know whether or not 

we have hope. We cannot really be fooled. 

When we are sizing up our hopes we are 

essentially taking an existential account of 

where we are. It is an assessment of our 

ability to survive now and into the future. 

Our assessment tells us where to put our 

energies and our time. 

Hope recognizes our interdependency 

with our families, culture, society and our 

environment. So a genius in a war torn 

country probably is less hopeful than an 

average person in a peaceful place. When 

hope is damaged it affects more than one 

person. When real hope is denied it is hard 

to replace. When a person has lost hope it 

can be hard to find motivation again. The 

most important impact we have on each 

other is through how we affect each other’s 

hopes. Hope breeds hope. 

When hope exists we engage with 

our environment more. We give more of 

ourselves to what we do – as does everyone 

else around us. Hope engages our creativity 

and our problem solving skills. It gets its 

hands dirty in the business of creating our 

lives. It values all of the details, skills and 

challenges that go into creating our world. 

Hope is grounded in present reality. It 

is our link to each other, the past and the 

future. It enables us to respect the efforts 

of our ancestors even as we decide not to 

repeat their mistakes. It respects the needs 

of other living creatures and future needs 

as well. It is the “something larger than 

ourselves” that we are all a part of. Living a 

hopeful life is to recognize that everything 

and everyone matters. That includes you 

since you are part of the hopefulness in 

the world. Taking care of yourself matters. 

The quality of the work you do matters. It 

matters how you are treated and how you 

treat others. 

In order to be an effective part of a 

hopeful world there are certain things that 

you need to do regularly: conduct a hope 

audit of your life, care for your health, have 

a stress reduction strategy, create hopeful 

relationships. Learn to forgive. Develop 

a daily journal writing habit if it helps 

you to let go of negative experiences and 

emotions. Help others see the best in 

themselves, being in Hope with Others 

God established and secured your hope 

when he raised his Son. Therefore, your 

hope is as alive as Jesus…asserts Segal 


INSPIRATION 

Hill says; The easiest way to control 

others is to destroy people’s hope. Hope is 

so important that totalitarian regimes will 

go to great lengths to control or destroy it. 

Divide and conquer is an old social control 

mechanism. It creates fear instead of hope. 

So when we level the playing field, or bring 

down barriers, we are inevitably increasing 

hopefulness by reducing obstacles to it; 

So hope is energy – your positive energy, 

your talents, value and your soul. It is the 

lifeblood of the human race. She notes 

that if you surround yourself with people 

invested in creating a hopeful world with 

you, then you are fortunate. However, not 

everyone will necessarily have a hopeful 

outlook. You can still support hope in 

someone else’s life whether they are able 

to value it or not. Look for ways to make 

hopefulness tangible. Don’t let it be just 

something for the future. Hope is all of 

the little things we do each day to make 

our lives. Everything you do contributes 

to hopeful living or takes away from it; 

concludes Hill. 

Hope is actually a positive emotion; 

this fact was not lost to the 44th President 

of the United States Barack Obama, he 

believed in it and walked with it to the 

White house. Audacity of hope became 

the title for the then upcoming President 

Barack Obama’s 2004 Democratic 

National Convention keynote address 

and the title of his second book. In his 

speech during the Democratic National 

Convention in 2004, Senator Obama 

who became better known to Americans 

after his speech and later became the US 

president said: “In the end, that’s what 

this election is about. Do we participate 

in a politics of cynicism or a politics of 

hope? John Kerry calls on us to hope. 

John Edwards calls on us to hope. I’m 

not talking about blind optimism here — 

the almost willful ignorance that thinks 

unemployment will go away if we just 

don’t talk about it, or the health care crisis 

will solve itself if we just ignore it. No, I’m 

talking about something more substantial. 

It’s the hope of slaves sitting around a 

fire singing freedom songs; the hope of 

immigrants setting out for distant shores; 

the hope of a young naval lieutenant 

bravely patrolling the Mekong Delta; the 

hope of a mill worker’s son who dares to 

defy the odds; the hope of a skinny kid 

with a funny name who believes that 

America has a place for him, too. Hope in 

the face of difficulty. Hope in the face of 

uncertainty. The audacity of hope! 

Hope is our energy, 

our fuel for living, 

so people will go 

to great lengths 

to create it and 

protect it. Without 

it you lack energy 

to engage with 

life. Hope is so 

essential that a 

negative childhood 

can reduce the 

brain’s ability to 

create dopamine 

which may lead to 

addiction because 

drugs increase 

dopamine levels in 

people who do not 

have the ability to 

create it naturally 

Mercedes S-Class saloon 

Hopeful Quotes 

“One who has hope lives differently.” 

Pope Benedict XVI 

“We must accept finite disappointment 

but must never lose infinite hope.” 

Martin Luther King, Jr. 

For every bad thing in life, there are more 

good things to tip the balance.” 

Richelle Mead, Succubus on Top 

“When it is dark enough, you can see the 

stars.” 

Chris Bradford, The Way of the Dragon 

“It is not as much about who you used to 

be, as it is about who you choose to be.” 

Sanhita Baruah 

“There is always a way out, as there is a 

way in” 

Bernard Kelvin Clive, Your Dreams 

Will Not Die 

“Don’t lose hope. If your hope gets lost, the 

other side called “failure” begins to win! 

The quickest medicine to heal a depressed 

soul is to command; “arise my soul and 

praise the Lord”. Hope is the clothe piece 

in which wraps a healthy soul!” 

Israelmore Ayivor, The Great Hand 

Book of Quotes 

My mother is my friend Who shares with 

me her bread All my hopelessness cured! 

Her company makes me secured!” 

Israelmore Ayivor, The Great Hand 

Book of Quotes 

“Hope is the heartbeat of the soul~” 

Michelle Horst 

Happiness is always there. You just have 

to choose to see it. There’s no point 

dwelling in the dark and ignoring the 

light of the stars.” 

Carrie Hope Fletcher 

NB (lifehack, quoted above, is a source 

for tips to help improve all aspects of your 

life. They (lifehack) are widely recognized 

as one of the premier productivity and 

lifestyle blogs on the web. This site is 

dedicated to lifehacks , which is a phrase 

that describes any advice, resource, tip or 

trick that will help you get things done 

more efficiently and effectively.) 


SOCIETY 

POSTPARTUM DEPRESSION 

IS A SOLITARY EXPERIENCE 

By Carol Ngura, carolngura@gmail.com 

Nduku sits at her balcony staring blankly 

at her one year old baby sleeping on her 

lap. She seems lost in thought; she still 

cannot believe that a few months ago she 

could not take care of her own baby or 

family; thanks to postpartum depression. A condition 

she only knew of after being diagnosed with it. 

The reality is Nduku is not alone in this. Statistics 

show that 20% of women are affected by postpartum 

depression after childbirth. Many assume it is a 

disease that exclusively affects women, but they are 

wrong. Men are also affected! 10% of fathers suffer 

postpartum depression after childbirth. Considering 

most men do not easily open up or report cases of 

depression, these figures are believed to be higher. 

Postpartum depression is a type of clinical 

depression that is currently under screened, under 

diagnosed, and undertreated. It is a mood disorder 

that can affect both sexes after childbirth and is often 

mistaken for baby blues. Often, the affected persons 

and their caregivers confuse it with baby blues and do 

not seek medical help until it is too late. 

So, what is the difference between baby blues and 

postpartum depression? 

Baby blues 

• Symptoms disappear after a few days or within two weeks 

after childbirth 

• Has no effect on one’s ability to care for the baby or perform 

daily tasks 

• The symptoms are mild and go away without medical 

intervention 

Postpartum depression 

• Symptoms can last for months after childbirth 

• Eventually interferes with one’s ability to care for their baby 

and handle other daily tasks 

• The symptoms are severe and treatment by a medical doctor 

is needed besides counseling and support groups. 


SOCIETY 

Unfortunately, postpartum depression has 

no known cause but several physical and 

emotional factors are known to trigger its 

onset. After childbirth, women go through 

a dramatic drop in estrogen hormone and 

progesterone hormone causing some 

chemical changes in the brain which then 

trigger the onset of postpartum depression. 

Reduced levels of hormones produced by 

the thyroid gland also result in fatigue and 

worsen the depressed state of the affected 

mother. In men, testosterone levels go 

down and estrogen levels go up. Generally 

lower levels of testosterone are associated 

with depression and the rising estrogen 

levels are believed to be the cause of men 

feeling more emotional than usual. 

For many, childbirth brings with it 

pride and excitement and most tend to 

imagine it is pure bliss. But reality is, it is 

not all that rosy. There are sleepless nights, 

a crying baby in constant need of care, less 

attention from your partner and a great 

shift in priorities. It requires significant 

coping skills, and for many parents, it is 

quite overwhelming. Constant lack 

of enough sleep leads to physical 

discomfort and exhaustion, which may 

result in the symptoms of postpartum 

depression. 

Apart from the environmental and 

physical factors, other risk factors 

include: 

a) A family or personal history of any 

form of mental illness or mood stability 

problems 

b) Medical complications during 

childbirth, could be premature delivery 

or having a baby with medical problems 

c) Mixed feelings about the pregnancy, 

whether it was planned or unplanned/ 

unwanted 

d) Having difficulties breast-feeding 

e) A lack of strong emotional support 

from the spouse, family, or friends 

f ) Alcohol or other drug abuse 

problems 

g) A depressed partner; especially 

for men if their partner is depressed, 

chances of them suffering the same 

increase 

h) A stressful life event during 

pregnancy or shortly after giving birth, 

maybe death of a loved one, domestic 

violence, or personal illness 

i) Feeling disconnected from baby or 

partner; sometimes mother’s afraid he 

will ‘do it wrong’, end up excluding their 

partners from helping and caring for 

the baby. They get caught up in bonding 

and caring for the baby failing to 

recognize their partner also wants time 

with them. This often affects the men 

and may push them into postpartum 

depression. 

j) Depression during or after a 

previous pregnancy 

How can one know they have 

postpartum depression? What are 

the telltales to look out for? The truth 

is, postpartum depression is a very 

solitary experience and the symptoms 

and signs that characterize it vary from 

one person to the other. However, they 

generally include: 

• Depressed or severe mood swings 

• Crying excessively and for no 

apparent reason 

• Trouble bonding or forming an 

emotional attachment with the 

baby 

• Withdrawing from family and 

friends 

• Loss of appetite or eating much 

more than usual 

• Worrying or feeling overly anxious, 

sad, hopeless, empty, or 

overwhelmed 

• Inability to sleep (insomnia) or 

sleeping too much 

• Low energy levels and fatigue 

• Reduced interest and pleasure in 

activities you used to enjoy 

• Intense irritability, anger and rage 

• Persistently doubting her ability to 

care for her baby 

• Feelings of worthlessness, shame, 

guilt or inadequacy 

• Low ability to think clearly, 

concentrate or make decisions 

• Severe anxiety and panic attacks 

• Thoughts of harming yourself or 

your baby 

• Suicidal thoughts and Impulsivity 

• Risk-taking behaviors, often 

including turning to substances 

like alcohol and drugs 

• Headaches, muscle aches, stomach/ 

digestion issues among other 

physical symptoms 

Postpartum depression is a slow erosion 

of self and sometimes those suffering 

from it do not acknowledge that they are 

depressed. Due to the stigma associated 

with mental illnesses, most refuse to accept 

they are unwell and remain in denial. 

It is therefore the duty of those around 

them to contact a qualified professional 

to determine whether it is postpartum 

depression or something else. In case one 

is diagnosed with this type of depression, 

two forms of treatment exist and can be 

used alone or together. 

1) Medication: This includes 

antidepressants for mood regulation. 

Most are considered safe for breastfeeding 

mothers and take a few weeks to be 

effective. 

2) Talk Therapy/ counselling: this 

involves one on one talks with a mental 

health professional could be a psychiatrist, 

therapist, counsellor or social worker. 

These two types of counselling are known 

to be effective in treating postpartum 

depression; 

• Cognitive behavioral therapy (CBT), 

helps victim recognize and change their 

negative thoughts and behaviors. 

• Interpersonal therapy (IPT), helps 

victim recognize and work through 

strained relationships 

Depression being a mental disorder, the 

patient requires so much support from 


SOCIETY 

immediate family members and close 

friends. With a good support system, 

the patients are known to recover much 

faster. As family and caregivers, offering 

emotional support, assisting with daily 

tasks such as caring for the baby or the 

home, sympathetic listening, patience, 

affection, being positive and creating a 

less stressing environment contributes 

massively to the patients healing process. 

The patient needs to also play a part in 

accelerating his/her treatment through; 

• Healthy lifestyle choices: Make 

exercises part of his/her daily routine, get 

adequate rest. Eat healthy foods and avoid 

drugs and alcohol. 

• Opening up: Talk about their feelings 

with family and friends. Join a support 

group and hear about the stories of other 

parents and how they are coping. 

• Set aside some self-time: Take time to 

do what they love/enjoy (can be going 

shopping or going for a movie or anything 

else they like). 

• Be realistic: Scale back their expectations 

and just do what they can 

• Ask and accept help: Let people close 

to them know when they need help and 

take them up on when they offer. This 

gives them time to relax and engage in 

other activities. 

In instances of untreated postpartum 

depression in either the mother or father, 

children are the most affected. It is almost 

impossible for the depressed parent to give 

their child attention, affection, discipline 

or even playtime. Thus, the baby may end 

up being anxious, fearful, withdrawn, 

whiny, and may even stop reacting to 

people at all. The baby is likely to have 

emotional and behavioral problems, 

such as sleeping and eating difficulties, 

excessive crying, and attention-deficit/ 

hyperactivity disorder. They may also 

delay in developing a language. 

Untreated depression in one’s partner 

may lead them into depression and mood 

stability issues. It is not easy supporting 

a depressed person and being the persons 

closest to them, their spouses are likely to 

suffer the same. 

For the depressed persons, untreated 

postpartum depression can end up as a 

chronic depressive disorder especially if it 

lasts long. Even when treated, it increases 

their risk of future incidences of major 

depression. 

The societal stigma associated with 

depression remains high especially in 

Kenya and creating awareness is part of 

dealing with it. Most parents feel shamed 

when they do not feel the excitement of 

having a new born. They feel they are 

not good parents and beat themselves up 

instead of seeking medical attention. The 

only way to raise a psychologically healthy 

family is if the parents are psychologically 

healthy themselves. 

Think of the family as one entity. If 

one part is sick, the whole suffers, and the 

emphasis should be on healing the sick 

part. 

Let us all remember, the best way to 

take care of our babies is to take care of 

ourselves. 


ENVIRONMENT 

KENYA’S GREEN BUILDINGS 

GAINING MOMENTUM 

Indifference among property developers 

in the country has been a set back 

By anthony@gsurveyors.com 

Knowing how much you are 

charged for your energy and 

how the charges come about, 

might well make you re-think 

your energy usage. 

Many people are yet to catch up with 

the habit of switching off and this is 

costing them and their employers a lot of 

money. It is however encouraging to note 

that this has been recognized and green 

buildings are rapidly gaining momentum 

in Kenya. 

Architectural Association of Kenya 

(AAK) has signed a contract with UN- 

Habitat to help encourage and provide 

guidelines and technological measures 

that architects around the country will use 

to produce buildings that promote greater 

environmental responsibility. 

In order to push the agenda there is also 

a push from the Kenya Green Building 

Society (KGBS). They recommend 

that county governments should form 

partnerships with the society so that it can 

give them guidance during the formulation 

of their by-laws to ensure that all building 

regulations adhere to the sustainable 

building agenda. Despite repeated appeals 

to developers encouraging them to put up 

green buildings, not much progress has 

been achieved – according to Dr Vincent 

Kitio the Chief of UN Habitat’s Urban 

Energy Unit. This has been somewhat 

discouraging but all efforts are being made 

to ensure that Kenya is not left behind in 

this very significant matter. 

Building green actually works in 

Western countries because governments 

there understand the value that they 

deliver to the economy and hence offer 

incentives for their contractors to go 

green. However, in Kenya, green building 

is yet to be profitable because the costs of 

putting up an energy-efficient structure 

are exorbitant. This was explained by Mr 

Samuel Onyango, a contractor at an event 

that was organised by the Kenya Green 

Building Society. 

Architects have in the past complained 

of the lack of awareness of uniform green 

building standards that should be applied 

by builders in the country. It is important 

to note that standards cannot just be 

borrowed from green building standards in 

Europe and be applied in Kenya. One must 

be cognisant of the climatic differences 

between sub-Saharan Africa and Europe. 

What is needed are green building 

standards laid out and approved for 

application in Kenya by the government. 

This was the sentiment of the Agricultural 

society of Kenya in their annual gathering 

last year. 

The other set back is due to the 

indifference among property developers in 

the country. This has been a talking point 

at the United Nations habitat forums for 

some time now. Consequently the United 

Nations Environmental Programme 

(UNEP), in collaboration with the United 

Nations Human Settlements Programme 

(UN-Habitat) has launched a programme 

known as Promoting Energy Efficiency in 

building in East Africa. This is now being 

promoted across the 47 counties in Kenya 

and it is hoped that positive changes will 

be seen as a result of this initiative. 

Since two years ago the UN – Habitat 

Energy Unit has been carrying out 

training of architects, engineers and other 

professionals on the aspects of green 

buildings such as the ability of a building 

to use natural light, harvest rain water and 

tap solar energy. 

In fact the Architectural Association 

of Kenya (AAK) has signed a contract 

with UN-Habitat on this matter. This 

is a pact between the association and 

UN-Habitat. It provides guidelines and 

technological measures that architects 

around the country will adopt to promote 

greater environmental responsibility going 

forward. 

Apart from these professionals, UN- 

Habitat is also looking to raise awareness 

among ordinary citizens about simple 

building practices that will enable them 

to go green. Currently new shopping 

complexes have embraced green energy 

technology quite comfortably. A good 

example is the Two Rivers Mall and 

Garden City. The Kenya Green building 


ENVIRONMENT 

Society in collaboration with the 

association of architects have also 

partnered with developers of residential 

housing such as real estate firm Dunhill 

to ensure that even houses are built in 

such a way that they are sustainable. The 

KGBS hosts regular training events as 

indicated by their secretary to the board, 

Mr Amrish Shah. KGBS is the only body 

in Kenya that’s mandated to certify the 

built environment. In this regards KGBS 

assesses buildings and awards ratings. 

In this regard, KGBS assesses 

buildings and awards ratings with regard 

to the processes used in the design, 

construction and maintenance of the 

building, ensuring that the buildings 

are environmentally friendly. Currently, 

KGBS uses the comprehensive Green 

Star rating tool adopted from South 

Africa. The rating tool assesses the 

environmental attributes of new and 

existing facilities in the building industry 

in Kenya. It can be applied from the 

design phase of a project up to two years 

from practical completion,” explains Mr 

Shah. 

For those living in non-green 

buildings Energy Audits is advised with 

a view to drastic reduction and hence 

saving on running cost. The following 

will encourage you going forward; 

Kenya’s utility providers will charge 

commercial buildings based on the 

amount of energy consumed or estimates 

where inefficiencies are rampant. The 

following energy cost management 

recommendations will go a long way in 

improving efficiency of use and hence 

lower your cost. Keep in mind how each 

one will impact both your consumption 

and demand. Many office buildings 

can benefit from quick low-cost/ 

energy-saving solutions, such as turning 

equipment off. Turning equipment off 

seems simple, but remember that for 

every 1,000 kWh that you save by turning 

equipment off, you save kshs 10,000 

on your utility bill, assuming average 

electricity costs of 10.17 t0 17.50 cents 

per kWh. Note that these values exclude 

fixed and demand charges. The domestic 

(DC) cost is based on the 50-1500kWh 

usage band lights. 

Occupancy sensors and timers can help, 

but a less expensive alternative would 

be to educate and motivate employees 

to turn off lights at the end of the day; 

Computers and office equipment; the 

typical desktop computer, monitor, and 

shared printer draw about 200 watts per 

day. Most of the equipment sold today 

goes into a low-power sleep mode after a 

period of inactivity. Unfortunately, most 

office buildings in the Kenyan towns and 

cities spend an annual average of ksh 

70.00 per square foot on electricity. In a 

typical office building, lighting, heating, 

and cooling represent between 54 and 

71 percent of total use depending on 

climate, making those systems the best 

targets for energy savings. 

Energy represents about 19 percent of 

total expenditures for the typical office 

building. This clearly makes energy a 

significant operational cost deserving 

management attention. In order to better 

manage your building’s energy costs, it 

helps to understand how you are charged 

for those costs. 

Electricity is charged based on two 

measures: consumption and demand. 

The consumption component of the bill 

is based on the amount of electricity in 

kilowatt-hours (kWh) that the building 

consumes during a month. The demand 

component is the peak demand in 

kilowatts (kW) occurring within the 

month, or, for some utilities, during the 

previous 12 months. Demand charges 

can range from a few shillings per 

kilowatt-month to upwards of kshs 1600 

per kilowatt-month for average families. 

Since it can be a considerable percentage 

of your bill, care should be taken to 

reduce peak demand whenever possible. 

As you read the Lighting Measures :- 

• Fluorescent lamps. If your facility 

uses T12 fluorescent lamps, re-lamping 

with modern T8 lamps and electronic 

ballasts can reduce your lighting energy 

consumption by 35 percent. 

• Adding specular reflectors, new lenses, 

and occupancy sensors or timers can 

double the savings. Paybacks of one to 

three years are common. 

• Smart lighting design in parking lots. 

Institute of Electrical Engineers – UK 

recommends parking lots be lit at an 

average of one foot-candle or less of 

light, but most parking lots are designed 

with far more lighting than that. When 

designing lighting for a new parking lot, 

consider using low wattage metal halide 

lamps, instead of high-pressure sodium 

lamps, in fixtures that direct the light 

downward. 

• Using lower-wattage bulbs can actually 

increase the safety of your lot: An overlit 

lot can be dangerous to drivers if their 

eyes cannot adjust quickly enough in the 

transition from highly lit to dark areas. 

• Even with a lower wattage, an office 

building could safely use fewer lamps if 

this choice is made. Metal halide is less 

efficient than high-pressure sodium in 

conventional terms, but it puts out more 

light in the blue part of the spectrum, 

which turns out to be easier for our eyes 

to see under low-light conditions. 

• Daylighting. Light shelves, installed 

high on the inside of a window, will 

shade and prevent glare in the bottom 

6 feet of a floor, which is where most 

occupants work. The shelves also reflect 

the daylight up onto the ceiling, which 

indirectly illuminates a room. 

• High-Efficiency HVAC Units A highly 

efficient packaged air-conditioning/ 

heating unit can reduce cooling energy 

consumption by 10 percent or more 

over a standard-efficiency, commercial 

packaged unit. 

• For hotels – considered movement 

sensitive lighting which will only come 

on when there is movement along 

corridors and even toilets. Occupancy 

sensors and timers can help. 

No doubt if these practical measures 

are put in place, there is a big chance 

that the green energy momentum 

will be progressively embraced by all 

stakeholders in Kenya and that we will 

all be better off for that. 


WHERE WOMEN 

ACCOUNTANTS BELONG! 

Our Vision: To be a globally recognized women 

accountants’ association. 

Our Mission: Building capacity among women 

accountants to enable them access opportunities. 

WHY AWAK: 

• An avenue of professional growth and development 

• Knowledge, information and inspiration 

• Accords Networking opportunities 

• Placement for Jobs and internships for women 

Accountants 

• Enhances Mentorship and Support for the girl-child 

• Earn CPD Hours from affordable events and trainings 

HOW TO BE A MEMBER: 

Requirements for full membership:- 

• Final KASNEB Certificate/Result Slip 

• One Passport Size photo 

• Copy of your National ID 

• Registration fees of Kshs. 500 

• Annual subscription fees of Kshs.3,000 

Requirements for Associate membership:- 

• CPA 2 KASNEB Certificate/Result Slip 

• One Passport Size Photo 

• Copy of your National ID 

• Registration fees of Kshs. 500 

• Annual subscription fees of Kshs. 1,500 

www.awak.co.ke 

“Association of Women Accountants of Kenya-AWAK” 

@AWAK2016 

For more information and guidance on application, 

MAY - JUNE 2016 55 

call 0720 016 556 or email awak@awak.co.ke

HEALTH 

DEALING WITH 

CONSTIPATION 

Compiled by Angela Mutiso, cananews@gmail.com 

When the Muscle 

Contractions in Your 

Intestines Are Too Slow to 

Push Out Toxins 

Constipation can trigger a lot of pain and 

distress. However, there are a number of 

measures you can take to ease your pain. 

These encompass what you eat, how you 

live, and how you use the bathroom. 

There is intermittent constipation, 

persistent constipation, travel-related or 

age-related constipation. Constipation 

occurs when the muscle contractions in 

your intestines are too slow to push the 

stool out of your body, or when there isn’t 

enough water in your stool to soften it 

and move it through your intestines. 

Measures you can take range, from 

adjusting your diet to trying a few overthe-counter 

medications. According 

to Wikipedia, fiber-rich foods are 

known to help stimulate your bowels. 

Unfortunately, these foods, such as 

many fruits and vegetables, often get 

overlooked in a person’s daily diet. Don’t 

think of vegetables or fruits as optional 

side dishes, but as crucial parts of every 


HEALTH 

balanced meal. Not only will these foods 

relieve constipation, but will also promote 

digestive health by improving your diet. 

You should aim for at least 24-38 grams of 

fiber a day. 

What you should know 

Avoid foods that cause constipation; 

constipation can result from over 

consumption of fats, refined sugar, and 

dairy in comparison to fiber from whole 

grains, bran, fruits and vegetables. Avoid 

too much cheese, red meat, white bread, 

white rice, and hard boiled eggs. You don’t 

have to cut these foods out of your diet 

completely, but you should cut down on 

them if you’re having trouble evacuating 

your bowels. Also avoid; chips and crackers; 

frozen dinners, which are often high in fat 

and low in fiber; cookies; unripe bananas; 

fried foods like fries, doughnuts, and 

onion rings; heavily breaded foods; dairy 

products like butter, ice cream, cheese, or 

yogurt, says Wikipedia. 

Here are some foods Wiki suggests 

you can add to your diet. Avocado, split 

peas, broccoli, kale, green peas, and 

lentils; bran cereal, oatmeal, brown rice, 

and flax seeds; black beans, kidney beans, 

lima beans, navy beans, pinto beans, 

and soybeans; raspberries, blackberries, 

strawberries, blueberries, and oranges; 

cabbage and cauliflower; almonds, dried 

figs, and olives; papaya and peaches. 

Note that some processed or synthetic 

fibers such as Citrucel, Metamucil, or 

Perdiem can do the trick. Also, hydrate 

well. Constipation can also be caused 

by insufficient hydration. Generally 

drink a minimum of 33-66 ounces (1.5- 

2 liters) per day, or more depending on 

your size, the weather, or amount of 

exercise. Constipation results from a lack 

of liquid in your stool, and hydrating 

can help this problem. If you’re having a 

bout of constipation, increase your water 

consumption for 3-4 days, starting with 

a big glass in the morning and drinking 

regularly throughout the day. In general, 

you should be drinking at least 10 glasses 

of warm water daily. Water is one of the 

best liquids that wash waste and toxins 

out of the body. 

It notes that other drinks, such as juice 

and soda, cannot compare regardless of 

how healthy or natural they are, because 

they tend to contain excessive sugar that 

could actually exacerbate constipation, 

additionally, scheduling a time to have 

a bowel movement promotes regularity 

and can trigger your body to have a 

bowel movement. Make time for a bowel 

movement, whether it’s in the morning, 

after your afternoon meal, or several 

times a day that are convenient for you. 

If you don’t have a regular schedule, your 

body can be confused and unready to 

have a movement. Heed the call; if your 

body is telling you that it’s time to have 

a movement, don’t put it off. Even if it’s 

only a mild suggestion, you should spend 

some time in the bathroom, even if you’re 

in the middle of a busy day. If you ignore 

your body when it’s telling you to have 

a movement, this can cause constipation 

later in the day. You may be ready to have 

a movement later, but your body won’t 

be. When you’re going through a bout 

of constipation, try some light exercise 

instead of sitting down. Just taking a 20 

to 30 minute walk can help stimulate your 

digestive tract. 

What you can do 

Any form of exercise can help your body 

promote healthy bowel movements. 

Plugging exercise into your weekly 

routine can help ease your constipation 

over time. Yoga has been known to relieve 

stress and improve overall digestive 

health. Wiki says there are also a few yoga 

poses that can stimulate the bowels, and 

holding these poses alone can be effective 

in relieving your constipation. Here are 

some poses to try: The shoulder stand. Lie 

on your back and raise your legs straight 

up in the air, so they’re perpendicular to 

your torso. Then place your hands on your 


HEALTH 

lower back, using your arms to support 

your legs as you straighten your spine. 

The wind-relieving pose: Lie flat on your 

back. Bend one knee and extend it to your 

chest, holding it for ten seconds. Then 

switch and do this with the other knee; 

Alternate between knees at least five to 

ten times. 

Try Kapalbhati Pranayam yoga. Many 

people say it is effective in relieving 

constipation. It should be done on an 

empty stomach or 5 hours after a full 

meal. When you sit on the toilet, don’t put 

your feet on the ground. Instead, lift them 

up so you’re squatting into the toilet a bit 

more, or place them on a footstool. This 

position is ideal for moving your bowels. 

If you want to try squatting, get a child’s 

step stool or stack of phone books and 

prop up your feet while you’re sitting on 

the toilet. If you don’t feel comfortable 

squatting, pull your legs in as close as 

you can get to the toilet bowl and raise 

your heels so you are doing “tippie-toes” 

with your feet. Then lean as far forward 

as you can without losing your balance, 

this will get your body into a “squatting 

position” without actually squatting. This 

will let stools out easier. Find something 

Make time for a 

bowel movement, 

whether it’s in the 

morning, after your 

afternoon meal, 

or several times 

a day that are 

convenient for you. 

If you don’t have a 

regular schedule, 

your body can 

be confused and 

unready to have a 

movement 

about knee-high with handles you can 

grab. Position it so the handles are right 

above your toes. Two tall, wooden stools 

might work. Grab the handles and press 

down for stability and strength while 

trying to move your bowels. Massaging or 

pressing a few key pressure points in your 

body with a free hand or just two fingers 

can help stimulate your colon and relieve 

your constipation. Try applying pressure 

to the following points: The outer end of 

the elbow crease The highest spot of the 

muscle on the back of the hand that sticks 

out when you bring your index finger and 

thumb close together, if your constipation 

lingers for three weeks or more, you 

should see a doctor because it could be a 

sign of more serious digestive conditions. 

You should also see your doctor if: You 

have severe constipation and have never 

been constipated before; you have blood 

in your stool; you’re bleeding frequently 

from straining; you’ve lost weight without 

trying. Use a rectal glycerin suppository. 

This suppository works by drawing water 

into the intestines. This usually results in 

a bowel movement within 15 minutes to 

an hour. This method is not meant to be 

used often, but is a measure to be taken in 


HEALTH 

more extreme cases. Follow the directions 

on the label and don’t use it more often 

than recommended. 

Wikipedia concludes that you should 

be wary of painkillers. Painkillers, 

especially narcotic ones such, can cause 

constipation. Though you shouldn’t stop 

taking painkillers just to relieve your 

constipation if you really need them, 

talk to a doctor about alternatives. It is 

estimated that millions of people suffer 

from it in fact; it’s thought to affect 

around 20% of Americans, resulting 

in 8 million doctor visits per year. 

Constipation can be brought about by 

foods you eat or avoid; lifestyle choices, 

medication or disease. When you are 

constipated, your stool becomes hard and 

your bowel movements are fewer, hard, 

dry and difficult to pass. 

NDTV update 

In a recent popular survey done by a 

global marketing research agency, 14% 

of India’s urban population was found to 

be suffering from chronic constipation. 

The common symptoms these people 

experienced, besides the stool issue, 

were irritability, lack of interest in work, 

mood swings, worry and embarrassment. 

Then there was also abdominal swelling, 

nausea, weight-loss and in some severe 

cases, even vomiting. Loosen Up - This 

is probably the most well known cure 

for occasional constipation. Take some 

warm water and add lemon juice and 

honey to it. Lemon is a stimulant for 

your digestive system and can help flush 

out toxins. Honey cuts the sour taste and 

some researchers believe that it works as 

a mild laxative. You could also use some 

salt instead of honey for two reasons: salt 

is rich in magnesium which encourages 

contraction of the bowel muscles and 

two because it helps flush toxins from 

the stomach and small intestine. How 

to have it: Warm some water and add 

about 1 teaspoon of lemon juice and half 

a teaspoon of honey or a pinch of salt. 

Ayurveda to the Rescue - Try having two 

or three Triphala tablets (you could also 

use the powdered form) with warm water 

before you sleep. Triphala is made with 

Harad also known as black myroblan and 

works as a fantastic laxative. It has antibacterial, 

anti-fungal and anti-parasitic 

properties which makes it a great form of 

treatment for diarrhea and other kinds of 

infections as well. How to have it: Mix 

one spoon Triphala powder in warm 

water and drink it all in one go. Don’t eat 

or drink anything after and let Triphala 

work its magic through the night. The 

mix tastes extremely bitter and in case 

you have difficulty gulping it down, add 

a spoon of honey to it. 

Grease it Right - It’s important to 

oil the tracks and so doctors suggest you 

add more olive oil or ghee to your diet. 

Castor oil works too. It’s a great laxative 

as it increases the movement of the 

intestines and helps clean them out. How 

to have it: Take a spoon full of oil or use 

a measuring cup to be sure. Have it on 

an empty stomach and wait for around 8 

hours or so for it to work its magic. Get 

Your Fiber Fix - On an average, a woman 

needs around 25 grams of fiber a day 

and a man needs somewhere between 30 

and 35 grams a day. In order to get your 

digestive system back on track, you must 

make sure what you’re eating is the right 

amount. Oats are high in fibre and so are 

lentils, flaxseeds and chia seeds. Prunes 

are also rich in fibre and a natural laxative, 

so you can have them as is or drink some 

prune juice. Raisins are another great way 

to get your system going. You can have 

them as is or soak them in hot water, 

crush and then eat. Dr Rupali Datta 

recommends you include vegetables like 

broccoli and spinach that are rich in 

insoluble fibre. She also suggests figs and 

honey. Fizzle it Out - The answer lies in 

baking soda. When sodium bicarbonate 

reacts with the acids in the stomach, it 

produces salt, carbon dioxide and water. 

This facilitates bowel movement and 

cleanses the colon. How to have it: Take 

1 teaspoon of baking soda and about 

1/4th cup of warm water. This mix also 

works for acidity and mild stomach pain. 

The Right Diet - According to David 

Frawley, author of the book Ayurvedic 

Healing: A Comprehensive Guide, the 

right kind of diet would be one without 

oil, fat or sweets. 

You must also avoid things like cheese, 

breads, potatoes and pork. And instead, 

you should include warm milk, ghee, 

licorice tea, and ginger juice. Certain 

ayurvedic doctors also recommend herbs 

like aloe, psyllium and rose. 

Health Tips 

• Laxative Senna is commonly 

used to relieve constipation. 

It is usually not recommended 

for people who are pregnant, 

breastfeeding or have certain 

health conditions, such as 

inflammatory bowel disease. 

• Probiotics may help treat 

chronic constipation. You can try 

eating probiotic foods or taking a 

supplement. Supplements should 

be taken daily for at least 4 weeks 

to see if they work. 

• You can speak to your doctor 

or pharmacist about choosing 

an effective laxative; they 

may recommend one of the 

following types: Bulking agent: 

Stool softener: Stool softeners 

contain oils to soften the stools 

and ease their passage through 

the gut. Stimulant laxative: 

These stimulate the nerves 

in your gut to increase bowel 

movements. Osmotic laxative: 

Osmotic laxatives soften your 

stool by pulling water from the 

surrounding tissues into your 

digestive system. 

• Try a Low-FODMAP Diet; 

Constipation can be a symptom 

of irritable bowel syndrome (IBS). 

The low- FOODMAP diet is an 

elimination diet that’s often used 

to treat IBS. It could be effective 

at treating your constipation if IBS 

is the cause. FODMAP stands for 

fermentable oligo-saccharides, 

disaccharides, monosaccharides 

and polyols. The diet involves 

limiting high-FODMAP foods 

for a period of time before 

reintroducing them to determine 

which ones you are allergic to. 

Magnesium citrate supplement 

also fight constipation as can 

prunes because of their laxative 

effect. 

• Dairy intolerance can also 

cause constipation, if you suspect 

it; try removing it for a short 

period and see if that makes a 

difference. 

• However, most of these 

laxatives shouldn’t be taken 

on a regular basis without first 

speaking to your doctor. 

authoritynutrition.com 


TID BITS 

Below are selected articles from Africa.com. You can follow them up on the web from the indicated sources for more detailed information. 

Risky operation removes 

parasitic twin from baby 

A baby girl whose twin failed to develop 

properly and fused to her growing body in 

the womb is recovering after a successful 

operation in the US. A team of five 

surgeons at Advocate Children’s Hospital 

in Chicago removed baby Dominique’s 

parasitic twin. In this extremely rare case, 

her parasitic twin was attached to her back 

and shoulder. This made her look like she 

had two extra legs and feet. Dominique 

travelled from Ivory Coast for the 

operation and will return soon. Dr John 

Ruge, who led the surgery, said one of 

the biggest challenges had been to ensure 

Dominique was not left paralyzed. He 

said: “There were a lot of challenges to her 

skeletal system... we could destabilize her 

spine and cause her impairment.” Another 

of the surgeons, Frank Vicari, said: “We 

had an enormous amount of imaging, 

specialized imaging that would allow 

us to identify her own native anatomy, 

the anatomy of the parasitic twin and 

anticipate the problems we might see... so 

that we could pre-plan what we intended 

to do and minimize any opportunity for a 

surprise during surgery.” 

Source BBC 

Zambia announces tough 

measures against fake 

churches 

The Zambian government has 

announced tough measures to deal with 

mushrooming churches amid calls to 

curb “fake churches” and mercenary 

clergymen. Godfridah Sumaili, Minister 

of National Guidance and Religious 

Affair, said Wednesday no church would 

be registered without clearance from 

her ministry. In a ministerial statement 

delivered in parliament, the minister 

said a legal instrument would soon be 

announced that would compel all churches 

to be registered under the Registrar of 

Societies. According to Sumaili, currently 

some churches hide under the guise 

of companies by registering under the 

Patents and Companies Registration 

Agency (PACRA). “This scrutiny will be 

extended to foreign mission. Foreigners 

who come into the country for missionary 

work will be subjected to this same scrutiny 

before travel visas are issued for them 

to travel to Zambia for their missionary 

work to avoid fake people,” she said. The 

government, she said, was concerned with 

the mushrooming of churches and fake 

church leaders who were deceiving people. 

There has to be a minimum standard for 

churches in the country, and the ministry 

is working with the existing church 

organizations to empower them so that 

they can regulate these churches, she 

added. The conduct of some churches and 

clergymen has been a source of concern in 

Zambia for some time, with stakeholders 

calling on the government to come up with 

regulatory measures. Some churches and 

their leaders have been accused of taking 

advantage of the gullibility of people to 

make quick money on the pretext that 

they were able to end all their problems. 

News headlines of clergymen engaging 

in illegal and clandestine activities in the 

name of the church are common in this 

nation, where about 87 percent of the 

people are Christians. Some clergymen 

were reportedly demanding for money 

and sexual favors in exchange for miracles 

to change people’s lives. 

Source: Xinhua 


TID BITS 

Pope Francis asks for forgiveness for church’s role in Rwanda genocide 

Pontiff acknowledges some Catholic priests and nuns ‘succumbed to hatred and violence’ by taking part in 1994 killings Pope 

Francis has asked for forgiveness for the Catholic Church’s role in the1994 Rwandan genocide, in which 800,000 people 

were slaughtered in 100 days of violence. The “sins and failings of the church and its members” had “disfigured the face” of 

Catholicism, he said. Speaking after meeting the Rwandan president, Paul Kagame, the Vatican acknowledged that some 

Catholic priests and nuns had “succumbed to hatred and violence” by participating in the genocide. According to the Vatican, 

Francis “expressed the desire that this humble recognition of the failings of that period, which unfortunately disfigured the 

face of the church, may contribute to a ‘purification of memory’ and may promote, in hope and renewed trust, a future of 

peace”. About 200 priests and nuns – Tutsi and Hutu – were among those slaughtered. But other priests and nuns were 

complicit, or even took part, in the violence. Thousands of people were butchered in churches where they sought refuge. An 

estimated 5,000 people were killed at the Ntarama Catholic church on 15 August 1994: the site is now one of six major 

memorials in Rwanda. 

Source: The Guardian 

Funding needed to deal with 

tuberculosis drug resistance 

The World Health Organization (WHO) 

points out that poor funding of research is 

to blame for the rise in drug resistance cases 

of tuberculosis infections. It notes that the 

need for research and development of new 

antibiotics was the key to tackling the 

danger of tuberculosis. Tuberculosis is one 

of the world’s deadliest, yet preventable 

communicable diseases and continues to be a 

problem in Africa. 

Technological advancement 

LG’s Managing Director, East and Central Africa Mr. Janghoon 

Chung has pointed out in an informative article in the standard that 

electricity is one of the most importance advances that science has given 

to mankind. It is very hard to estimate just how important electricity is 

to nearly every aspect of modern life, from simple lighting to powering 

massive manufacturing. He goes further to note that for countries, 

then, securing adequate supplies of electricity is a paramount task. It 

is also a prerequisite for creating economic growth… our drive for 

energy is accelerating climate change and exacerbating environmental 

problems such as acid rain, a global issue that requires innovative 

responses. 


BOOK REVIEW 

Reviewed by Angela Mutiso, cananews@gmail.com 

Title: The Lucifer Effect – How good people turn evil 

Author: Philip Zimbardo 

Category: Psychology 

Publisher: Random House 

This is an intensely entertaining 

and thought provoking book. 

In the preface of The Lucifer 

Effect, highly rated author, 

Philip Zimbardo says he 

wishes he could say that writing this 

book was a labor of love; it was not that 

for a single moment of the two years it 

took to complete. He says first of all it 

was emotionally painful to review all 

the videotapes from the Stanford Prison 

Experiment (SPE) and to read over and 

over the typescripts prepared from them. 

”Time had dimmed my memory of the 

extent of creative evil in which many of 

the guards engaged, the extent of the 

suffering of many of the prisoners, and 

the extent of my passivity in allowing 

the abuses to continue for as long as I 

did –an evil of inaction.” He recalls that 

he had also forgotten that the first part of 

this book was actually begun thirty years 

before (the book was published in 2007) 

under contract from a different publisher, 

however he quit shortly after beginning to 

write because he was not ready to relive 

the experience while he was still so close 

to it. 

Excerpts from some editorial Reviews… 

In The Lucifer Effect, the award-winning 

and internationally respected psychologist, 

Philip Zimbardo, examines how the 

human mind has the capacity to be 

infinitely caring or selfish, kind or cruel, 

creative or destructive. He challenges our 

conceptions of who we think we are, what 

we believe we will never do - and how and 

why almost any of us could be initiated 

into the ranks of evil doers. 

At the same time he describes the 

safeguards we can put in place to prevent 

ourselves from corrupting - or being 

corrupted by - others, and what sets some 

people apart as heroes and heroines, able 

to resist powerful pressures to go along 

with the group, and to refuse to be team 

players when personal integrity is at stake. 

Using the first in-depth analysis of his 

classic Stanford Prison Experiment, and 

his personal experiences as an expert 

witness for one of the Abu Ghraib 

prison guards, Zimbardo’s stimulating 

and provocative book raises fundamental 

questions about the nature of good and 

evil, and how each one of us needs to be 

vigilant to prevent becoming trapped 

in the ‘Lucifer Effect’, no matter what 

kind of character or morality we believe 

ourselves to have. Amazon 

Psychologist Zimbardo masterminded 

the famous Stanford Prison Experiment, 

in which college students randomly 

assigned to be guards or inmates found 

themselves enacting sadistic abuse or 

abject submissiveness. In this penetrating 

investigation, he revisits—at great length 

and with much hand-wringing—the SPE 

study and applies it to historical examples 

of injustice and atrocity, especially the Abu 

Ghraib outrages by the U.S. military. His 

troubling finding is that almost anyone, 

given the right “situational” influences, can 

be made to abandon moral scruples and 

cooperate in violence and oppression. (He 

tacks on a feel-good chapter about “the 

banality of heroism,” with tips on how to 

resist malign situational pressures.) The 

author, who was an expert defense witness 

at the court-martial of an Abu Ghraib 

guard, argues against focusing on the 

dispositions of perpetrators of abuse; he 

insists that we blame the situation and the 

“system” that constructed it, and mounts 

an extended indictment of the architects 

of the Abu Ghraib system, including 

President Bush. Combining a dense but 

readable and often engrossing exposition 

of social psychology research with an 

impassioned moral seriousness, Zimbardo 

challenges readers to look beyond glib 

denunciations of evil-doers and ponder 

our collective responsibility for the world’s 

ills. Publishers Weekly 

Social psychologist Zimbardo is best 

known as the father of the 1971 Stanford 

Prison Experiment, which used a simulated 

prison populated with student volunteers 

to illustrate the extent to which identity 

is situated within a social setting; student 

volunteers randomly chosen to play 

guards became cruel and authoritarian, 

while those playing inmates became 

rebellious and depressed. With this book, 

Zimbardo couples a thorough narrative 

of the Stanford Prison Experiment with 

an analysis of the social dynamics of the 

Abu Ghraib prison in Iraq, arguing that 

the “experimental dehumanization” of the 

former is instructive in understanding the 

abusive conduct of guards at the latter. 

This comparison, which is the book’s 

core insight, is embedded in a sprawling 

discussion about situational influences 

that cobbles together a discussion of the 

psychology of evil, a strong criticism of 

the Bush administration, and a chapter 

celebrating heroism and calling for greater 

social bravery. This account’s Abu Ghraib 

focus will generate demand. Brendan 

Driscoll- From Booklist 

So, how can good people become 

evil? How can honest people be induced 

to behave illegally, and moral people 

seduced to act immorally? The answers 

to such questions lie at the heart of this 

fascinating exploration of the darker side 

of human nature. 

The Lucifer Effect, a book that won 

the William James Book Award in 2008, 

is spell binding from start to finish. 

This book is available at amazon.com, 

from Prestige bookshop and other leading 

bookshops 


MEMORABLE QUOTES 

“Every Kenyan who owns a mobile 

phone is now empowered to invest 

in Treasury Bills and Bonds.” 

Jaindi Kisero; Columnist; explaining 

in the Daily Nation why M-Akiba is 

set to be a game-changer 

“Cases of files disappearing cannot 

be tolerated if we have to ensure 

public confidence in the judiciary.” 

High Court Judge John Mativo 

; describing the habit of files 

disappearing as an old habit that 

gives the judiciary a bad name. This 

is reported to have occurred after a 

file reported missing was found. 

“In accordance with Chinese 

tradition, it was imperative that we 

invite some relatives to accompany 

us to Kenya for the deceased’s final 

ritual.” 

Mr. Luo Jiyao; whose daughter 

Ms Luo Yi died in Kenya during a 

holiday in 2013, is along with his 

family, seeking compensation for 

their daughter, who was killed by 

a hippo at Lake Naivasha while 

allegedly taking pictures of the 

Hippo and its young one. 

“He travels a lot and frequently, 

he seems to walk in and out of 

Tanzania. He has visited India, 

Uganda as well as Burundi. He is a 

frequent traveler and the likelihood 

of him running away is real.” 

Prosecution lawyers, presenting their 

case regarding a 28 year old man 

alleged to have hacked into the 

taxman’s systems. Nearly 4 billion 

was allegedly lost. 

“Just installing CCTV cameras 

within your building is not enough 

and that’s what we call Generation 

I. CCTV are just there to monitor 

movements and the security team will 

be alerted if there is danger, but that 

is not enough. That’s why we have 

the Generation 2 where the security 

system is more advanced.´ 

Ariel Adoram; Managing Director, 

Glosec Group Company; Explaining 

that when it comes to securing high 

end homes and government offices, 

Glosec applies a three-pattern 

formula. 

“This will dramatically change the 

savings culture of our people. The 

success of M-Akiba is a testimony of 

how collaboration can democratize 

finance and there are many other 

products coming to showcase Kenya 

as a hot bed for innovation beyond 

financial technology.” 

Patrick Njoroge: Central Bank of 

Kenya Governor speaking during 

the launch of M- Akiba - which 

will enable Kenyans to invest in 

government paper. 

“Banks may have the options for 

looking at alternative investments 

and as long as the treasury bills 

appear attractive and as long as 

the rates are distortionary, they will 

still remain an attractive investment 

target for the banking sector until 

there is realignment and the rates 

come to within what is expected.” 

Habil Olaka; Chief Executive Officer 

CEO of the Kenyan Bankers - (KBA) 

saying banks are expected to divert 

more funds to treasury bills and 

bonds as they consider government 

debt less risky and more profitable in 

the wake of the rate-control law. 

“By applying these new guidelines, 

surgical teams can reduce harm, 

improve quality of life and do their 

bit to stop the spread of antibiotic 

resistance.” 

World Health Organization 

guidelines: advising doctors not to 

give antibiotic drugs to patients after 

surgery. It is also recommended that 

antibiotics should be taken before 

and during surgery to prevent 

infection. Not afterwards. 

“We have a 10 year roadmap, 

working with several local and 

international partners to build a 

world class innovation forum here in 

Kenya. We have seen tremendous 

results of our efforts so far… While 

celebrating the success of selfsponsored 

programs, we note that 

reduced government capitation, 

reduced student enrollment at 

institutional level and increased 

cost of living have generated new 

challenges to university financial.” 

Professor Peter Mbithi; University 

of Nairobi’s Vice Chancellor; 

explaining that the university will 

offer more support for upcoming 

entrepreneurs; He was speaking 

during the launch of Nairobi 

Innovation Week. The theme of 

the conference was ‘innovating 

to solve pressing local and global 

challenges.” 

“If a man does not keep pace 

with his companions, perhaps it 

is because he hears a different 

drummer. Let him step to the music 

which he hears, however measured 

or far away.” 

Henry David Thoreau 

“A man without a purpose is like a 

ship without a rudder.” 

Thomas Carlyle 

“The greatest discovery of my 

generation is that human beings 

can alter their lives by altering their 

attitudes of mind.” 

-William James 

“Whether you think you can or think 

you can’t - you are right.” 

Henry Ford 

“Knowledge conquered by labour 

becomes a possession - a property 

entirely our own.” 

Samuel Smiles 

“You don’t have to be great to get 

started, but you have to get started 

to be great.” 

Les Brown 

“We can no more afford to spend 

major time on minor things than we 

can to spend minor time on major 

things.” 

Jim Rohn 

“The only difference between success 

and failure is the ability to take 

action.” 

-Alexander Graham Bell 

“The time to repair the roof is when 

the sun is shining.” 

John F. Kennedy 

“A leader can shape his followers 

best by showing them the way 

forward rather than telling them 

about it.” 

Unknown 


STAR OF THE MONTH 

STAY FOCUSED 

A 

great commitment to work 

and to tasks at hand and 

a constant willingness to 

learn and listen seem to 

be some of the factors that 

have propelled our star to success; at 

least that is what was discernable in 

this interview. 

At 26, CPA Derrick Majani, head 

of Finance Bandari Sacco limited 

has a lot to be grateful about. It 

is rare for anyone this young to 

achieve as much as he has so 

fast and to rise so quickly. But 

CPA Majani, attributes all these 

to focus hard work, and an 

instinct for accomplishment. 

He believes in churning out 

results as fast as possible and 

being ahead in whatever role 

he plays. He refers to himself as 

a reliable and highly experienced 

accountant professional. 

He has 4 years experience; 

leading effective teams in all areas of 

audit and applying audit techniques 

and procedures to analyze financial 

information and provide assurance 

services. Before becoming head of 

Finance, he had worked as an Internal 

Auditor for Bandari Sacco Ltd and AAR 

Nyali Health Care as an Accountant. 

He is currently a member of the Youth 

and Student Affairs Sub-Committee of 

ICPAK and is in addition, an elected 

County Representative for the Institute 

at the Coast Branch in Mombasa. 

CPA Majani attained a Bachelor 

of Commerce – (Finance Option) at 

Kenyatta University; CPAK (Certified 

Public Accountant of Kenya); CS Part II 

(Certified Secretarial); CISA (Certified 

Information System Audit) and is 

currently at Strathmore University 

where he is pursuing an ICEAW 

Chartered Accountant Qualification 

(ACA). Our Star believes that if you set 

your sights on your dream and work 

relentlessly to achieve it, enormous 

and unremitting success will 

constantly follow. These are the factors 

that impel him to work diligently and 

to be a fine example to his workmates 

and upcoming accountants. It is worth 

adding that CPA Majani has and is 

using his youthfulness to great effect 

and moving forward at great speed. 

Below are excerpts from our 

interview: 

What does your present job entail? 

a) Preparation of Annual Financial 

Statements 

b) Answering accounting procedure 

questions by researching and 

interpreting accounting policy and 

regulations. 

c) Overseeing finance department and 

correlation with other departments in 

the Company. 

d) Preparation of Annual Budget and 

Cash flow statements to the Board. 

e) Coordinating the implementation 

of Internal control Framework so as to 

streamline Internal Control and Risk 

Management in the Sacco’s business 

processes. 

f) Coordinating and liaising with 

external audits of the Sacco to 

ensure external audits and Financial 

reporting processes are efficient and 

effective 

What was your first job? 

Accountant at Nyali HealthCare 

Mombasa 

What did your first job entail? 

• Debtors Invoicing. 

• Maintaining financial security by 

following internal controls. 

• Preparing payments by verifying 

documentation, and requesting 

disbursements. 

• Answering accounting procedure 

questions by researching and 

interpreting accounting policy and 

regulations. 

• Preparing special financial reports 

by collecting, analyzing, and 

summarizing account information and 

trends. 

• Bank Reconciliation 

Professional development and other 

training 

I currently serve as a member 

of the youth and student affairs 

subcommittee member of 

Membership Services –ICPAK; 


STAR OF THE MONTH 

I am also the County Convener in 

Mombasa Branch – ICPAK.I have made 

publications in the Accountant Journal 

including designing the first Accountant 

Crossword. 

Trainings presented and attended 

include; 

• Unclaimed Financial Assets 

Authority (UPAR) 

• Tax Compliance Workshop 

Earnest & Young 

• FRS workshop ICPAK 

• Forensic Audit Workshop ICPAK 

• Inaugural Public Sector Audit 

ICPAK 

• Assessment, Testing and 

Documenting Risks for Small 

Entities ICPAK 

• Tax Compliance Seminar- 

Hammond Tutu & Gunther 

• IFRS and IAS Training Seminar- 

Hammond Tutu & Gunther 

• Annual Tax Workshop – ICPAK 

1. Main gains 

• Growth in reporting skills and service 

to the Accountancy profession 

In your view, how has the 

accounting profession advanced 

lately? 

The profession has developed widely 

with growing concerns amongst 

shareholders to bring value through 

reporting and accountability. Changing 

business needs and dynamics has had 

various implications on reporting and 

accountants play a big role towards 

helping stakeholders achieve value 

based on reporting and audit approach. 

The profession still has potential to 

help bridge the expectation gap arising 

from the audit process and perception 

to shareholders 

What would you say was your 

biggest challenge? 

Working under pressure and preventing 

creative accounting which may lead 

to false representation of financial 

statements. 

Are there changes would you like to 

see? 

I would like to see more disclosure 

by accountants; and more embracing 

of integrated reporting to give the 

shareholder value and information. I 

would also like to see an enforcement 

of ethical standards within the 

profession. 

Advice to upcoming accountants 

To really embrace the profession 

through representation in various 

sectors of the economy and support 

the Institute of Certified Public 

Accountants towards creating a better 

future for the members. 

Major work highlights? 

Management reports and meetings 

form part of my major work 

Lowest moments? 

When there is no coordination within 

the department and most items 

are not posted in time leading to 

misreporting to the Board of Directors 

What are your hobbies? 

Reading IFRS books, Designing Code 

word and playing educative and video 

games 

Professional contributions 

• Presented on IAS 37 (Provisions, 

Contingent Liabilities and Contingent 

Assets) and IAS 24 (Related Party 

Transactions) at Whitesands Training 

sponsored by Capabuil Ltd. 

• July 2015 Appointed to Membership 

Services Committee by ICPAK. 

Serving in Youth Affairs Subcommittee 

and in Good standing 

• November 19th-20th 2015 Presented 

on IAS 1 (International Accounting 

Standard) at Hammond Tutu & 

Gunther Training workshop 

• Successful Implementation of 

ICPAK Internship Policy. 

• Implementation of TAPEF (Trainee 

Accountant Practical Experience 

Framework) 

PUBLICATIONS MADE 

• May –June 2016 Accountant 

Journal- Information Ethics and the 

Accountant Crossword. 

• March- April 2016 Accountant 

Journal- Audit Communication- The 

Missing Piece 

• March- April 2016 Accountant 

Journal- The Accountant Crossword. 

• November-December 2015 

Accountant Journal- Explaining Audit 

Purpose to the Auditee - ICPAK. 

What is your hope for your 

organization? 

I would like to help the organization 

achieve greater growth 

Who has inspired you most in your 

life? 

My Inspiration is from my mentor; 

DR Patrick Ngumi. He has been a 

mentor to the youth and inspiration 

to me towards seeking higher goals. 

He has changed the face of the 

Institute and inclusion of youth in 

leadership to set pace for leadership 

and advancement. I am a beneficiary 

of ICEAW Scholarship as a result of 

partnership between the Institute and 

ICEAW through the stewardship of the 

ICPAK CEO 

What do you like reading? 

The Accountant Journal and 

International Financial Reporting 

Standards (IFRS) 

What are you reading now? 

2016 IFRS Book majorly concentrating 

on Financial Instruments (IFRS 9) 

What inspires you? 

The zeal to know more though 

understanding and interaction with 

relevant professional members 

If you would like to be featured in our star of the month, send your profile to accountant@icpak.com 


TRAVEL 

By Clive Mutiso, clivemutiso@gmail.com 

FISHING FOR PEARLS 

ON KAMPALA’S 

HIGHEST HILL 

The first hotel ever to have been purpose-built in 

Uganda to international five-star standards of luxury 

Most people in the region 

know that the British 

statesman Winston 

Churchill described 

Uganda as “the Pearl of 

Africa”, so it is no surprise that the Carlson 

Rezidor hotel management chain have 

chosen the name Pearl Of Africa Hotel 

for the new five-star Kampala property 

with which they are launching their luxury 

Quorvus Collection brand in East Africa. 

The landmark 296-bedroom hotel sits at 

the top of Nakasero, the highest hill in 

Uganda’s capital city, and is the largest and 

tallest building in the country, visible from 

all directions up to 10 kilometres away. 

Even before its scheduled opening at 

the end of April this year, the Pearl Of 

Africa Hotel has attracted society wedding 

parties of more than 1,000 guests at a time, 

who have been hosted in the wedding 

garden that is a feature of the 14 acres 

of landscaped grounds. Carlson Rezidor, 

and the hotel’s owners, the Aya Group, 

are targeting not just the well-heeled 

elite of Uganda, but business, conference, 

and leisure visitors from around East 

Africa and the world. It is the first hotel 

property to be built to international fivestar 

standards in Kampala, and is expected 

to be a game-changer for the country’s 

hospitality industry. In one bold move, 

the developer has doubled the number of 

luxury hotel rooms that the city can offer. 

There are eleven different sizes and types 

of room and suite, although the cost 

of an overnight stay has not yet been 

announced. But whichever room a guest 

opts for, it is guaranteed to have a view of 


KAMPALA ««««« PICTORIAL PROGRESS REPORT NOV. 2015 

TRAVEL 


AYA Investments Uganda Limited 


w 

ae 

Lake Victoria because the tower housing 

the hotel has two wings, and they are all 

so high that they overlook the lake that 

almost surrounds the city. The height of 

the hill also ensures a refreshing breeze 

throughout the day on the hotel’s outdoor 

terraces, and a panoramic view of the city’s 

other hills. 

However there is much more to the 

Pearl Of Africa hotel than picturesque 

views - it is the interior of the hotel and 

and the unique features of the grounds 

that make it special. It is the first hotel 

ever to have been purpose-built in Uganda 

to international five-star standards of 

luxury. There are other upmarket hotels in 

Kampala, but they are all either four-star 

at best, or renovations of old hotels where 

the re-modelers have been constrained 

by room sizes designed for a different 

era, or budgetary constraints on what 

new features can be added to modernise 

ited AYA Investments Uganda Limited 

a property. In the Pearl Of Africa, no 

fexpense has been spared, and no possible 

attraction has been omitted. 

Just one of the unique features is 

the spa, gym, and sports centre, with 

its sauna, steam, and massage rooms, a 

massive indoor swimming pool, exercise 

equipment, and dedicated squash, tennis, 

and basketball courts. Access to these 

facilities is not restricted to hotel residents, 

but is also open to weekly, monthly, and 

annual members from the wider Kampala 

community. The spa is managed as a 

franchise of the South African Amani 

brand. 

That is not the only South African 

connection to the Pearl Of Africa - the 

hotel’s general manager, Robert Kucera, 

was formerly AYA Investments the general Uganda manager Limited of 

the gigantic Cape Westin Hotel which 

towers over downtown Cape Town. 

Mohammed Hamid, chairman of the 

Aya Group, and the hotel’s owner, said: 

“a big part of Rob’s brief will be training 

local Ugandan hotel professionals to 

reach and exceed the standards that have 

made South Africa the continent’s prime 

tourism destination. Our job has been to 

provide him with a world class hotel as 

a platform on which to build. With the 

support of Carlson Rezidor, we expect the 

Quorvus Collection brand to be the new 

standard to match, not just in Uganda, but 

throughout East Africa.” 



TRAVEL 


KAMPALA 

There was stiff competition from 

among international hotel management 

companies to add the hotel to their 

portfolio, Rezidor’s offer to designate the 

hotel as the launchpad for the Quorvus 

Collection brand in Africa is one of the 

key factors that put them ahead of their 

peers. In a single stroke, they have been 

able to establish themselves as the group 

that other hotel chains will have to try to 

match. 

In striving to set a new standard, 

Hamid has created a small city within 

the city, straddling the biggest plot in the 

centre of Kampala, with its own electrical 

power station to give total 24-hour backup 

in the event of a mains failure, to run 

the guest rooms, restaurants, kitchens, 

bakery, laundry, and communications, and 

to operate the twelve lifts that serve the 

complex. 

Apart from the indoor swimming 

pool in the spa area, there are three 

outdoor swimming pools cascading down 

the landscaped grounds of the hotel, 

overlooked by both the main specialty 

restaurant and the pool bar, which are 

housed in a two-storey wing beside the 

main tower. There are other restaurants 

and dining areas in the main tower, with 

a massive self-contained ballroom in the 

deep lower ground floor, with a VIP prefunction 

room above it. The executive 

lounge in the centre of the ground floor 

gives on to one of the hotel’s many paved 

terraces, which are also a feature of the 

sports bar beside the entrance atrium. 

Although many modern hotels have 

reduced the size of their business centres, 

or done away with them altogether, the 

Pearl Of Africa has taken the opposite 

tack, with a huge business centre and 

three adjacent lounge areas beside the 

lift lobby on the mezzanine floor of the 

hotel, which also houses nine different 

meeting and breakout rooms that can 

accommodate conferences, cocktails, 

and business presentations. Although 

meetings and conferences are being 

heavily promoted in Uganda, and are 

becoming increasingly important revenue 

earners for the hospitality industry, it is 

social functions on a Hollywood scale for 

which Kampala is unique in East Africa. 

One manufacturing company famously 

n AYA Investments Uganda Limited A 

x 

68 MAY - JUNE 2017 

AYA Investments Uganda Limited

TRAVEL 

held an all-day party for 2,000 guests just 

to launch a new brand of bathing soap. 

With this in mind, the Pearl Of Africa 

has positioned itself to set a new record 

in scale, with the capacity to host four 

functions of more than 1,000 guests each at 

the same time, both indoors and outdoors, 

in the ballroom and the gardens, all being 

catered from different kitchens, with 

different menus. It is the different menus, 

spanning African, Asian, European and 

Middle Eastern dietary preferences, that 

will create many more jobs than the 2,000 

people directly employed on the premises. 

Suppliers will be needed for specialty 

foods, fruits, and vegetables, and several 

hundred more jobs will be created in the 

AYA Investments companies Uganda supplying Limited goods and services 

to the Pearl Of Africa. 

“Job creation and technology transfer 

were two of my primary objectives in 

building this hotel,” said Mohammed 

Hamid, “Ugandans are well-educated, and 

quick to learn, and exposure to the systems 

and training of Carlson Rezidor will 

help them to achieve more professional 

advancement in the future, while building 

Uganda as a market leader in leisure, 

business, and conference tourism.” 


Job creation and technology transfer were 

two of my primary objectives in building 

this hotel,” said Mohammed Hamid, 

“Ugandans are well-educated, and quick 

to learn, and exposure to the systems 

and training of Carlson Rezidor will 

help them to achieve more professional 

advancement in the future 

KAMPALA ««««« PICTORIAL PROGRESS REPORT NOV. 2015 KAMPALA ««««« PICTORIAL PROGRESS REPORT NOV. 2015 

ak 


aj AYA Investments Uganda Limited AYA Investments Uganda Limited 


ACCOUNTABLE RECIPES 

By Sharon Gatonye, Sgatonye@outlook.com 

The Black & White Kitchen 

Warm Bacon 

Brussels sprouts 

Ingredients 

250g Brussels sprouts, washed and 

trimmed 

200g Streaky bacon, cut into chunks 

3 tbsp honey 

1.5 tbsp olive oil 

Salt and Pepper to taste 

Method 

Blanch the sprouts in boiling salty 

water for 2 min. 

Into a hot pan add the olive oil and 

chunks of bacon and fry till crispy. 

Add the Brussels sprout and honey, 

about a minute. 

Remove from heat and serve 

immediately. 

Stir fry Noodles 

Perfect dish for a midweek meal. Its quick and tasty 

Ingredients 

250g Noodles 

2 tbsp sunflower oil 

1/2 Onion, julienne 

1/2 Ginger, strip 

2 cloves of Garlic, slices 

2 Carrots, julienne 

2 Zucchini, julienne 

1 Red pepper, Julienne 

1/2 bunch of coriander, chopped 

For the sauce 

2 tbsp of light Soy sauce 

1 tbsp Sesame oil 

1 Red Chili, chopped 

Method 

In a small bowl , combine the sauce ingredients 

and set aside. 

In a large pot of boiling water, cook noodles 

according to package instructions. Drain well. 

Heat the sunflower oil in a large wok or pan 

over medium high heat. 

Add onion, garlic, ginger, Carrots, zucchini and 

red pepper. Cook, stirring frequently until 

tender for 3-4 minutes. 

Stir in the noodles and sauce mixture, gently 

toss to combine. 

Sprinkle the coriander and serve immediately. 


PEN OFF 

DO YOU KNOW 

HOW TO LISTEN? 

By FCPA Jim McFie, a Fellow of the Institute of Certified Public Accountants of Kenya 

The Institute of Internal 

Auditors has extensive notes 

on interpersonal skills. Why? 

Because most of the work 

internal auditors do requires 

dealing with others, individually and in 

groups. But the same can be said of external 

auditors, management accountants, chief 

financial officers and finance directors. 

Interpersonal skills are not just the skills 

involved in communicating with others, 

but also self-awareness and the ability to 

interpret information, manage change and 

solve problems. Communication as a skill 

is a ‘meta-competence’ underpinning your 

ability to perform your duties. 

The accountant needs skills in receiving 

and interpreting messages from a range 

of channels. There are two basic types of 

channels: reading and listening: being 

a good listener and reader will help you 

interpret and respond to messages more 

effectively. I want to concentrate on 

listening. 

The average human has an eightsecond 

attention span. With electronic 

distractions competing for your time and 

an abundance of responsibilities at work, it 

can make listening attentively to someone 

else speaking difficult. 

“We are living in a time when it’s 

more challenging to be consistently aware 

and intentional because so many things 

are demanding our attention. Our brains 

haven’t caught up with the technology 

that’s feeding them,” says Scott Eblin, 

author of ‘Overworked and Overwhelmed: 

The Mindfulness Alternative’: the impact 

of this leaves people in a chronic condition 

of fight or flight.” 

It is important to remember that one 

acquires new data and new information 

by listening. “Often, whether realizing it 

or not, people listen to each other out of 

generosity, not out of curiosity,” says Ajit 

Singh, partner for the early stage venture 

fund Artiman Ventures and consulting 

professor in the School of Medicine at 

Stanford University. “Listening is good, 

but the intent has to be curiosity, not 

generosity. True dialogue does not happen 

when we pretend to listen, and it certainly 

cannot happen if we are not listening at 

all.”“Each day, ask yourself, ‘What am 

I going to be curious about?’” says Hal 

Gregersen, executive director of the MIT 

Leadership Center. “Stewart Brand, editor 

of the ‘Whole Earth Catalogue’, wakes 

up every day asking himself, ‘How many 

things am I dead wrong about?’ Both 


PEN OFF 

questions effectively open your ears. It’s 

having a beginner’s mind-set walking into 

a conversation.” 

Be ready to learn from the other 

person: while you cannot control someone 

else’s listening habits, you can control your 

own, and that involves quieting down 

your mind.“Turn off those agendas,” says 

Gregersen. “Really listen to what someone 

else is trying to say. We need information 

that is disconfirming, not confirming. If 

we ever finish a conversation and have 

learned nothing surprising, we weren’t 

really listening.” 

Be ready to think about what is being 

said and be ready to ask questions: one of 

the simplest ways to be a better listener 

is to ask more questions than you give 

answers, says Gregersen. When you ask 

questions, you create a safe space for 

other people to give you an unvarnished 

truth.“Listening with real intent means 

I’m going to be open to being very 

wrong, and I’m comfortable with that in 

this conversation,” says Gregersen. “In 

a world that’s getting more polarized, 

being able to listen is critical to reducing 

unnecessary conflict at any level, within 

a team, organization, or on a broader 

political country level,” he says. 

Measure your talk/listen ratio: this 

may be taking things a little too far, but 

strive for a 2:1 ratio of listening to talking, 

says Eblin. “If you’re a note taker during 

meetings or conversations, try keeping 

track of how much you listen versus 

how much you talk,” he says. “Mark off a 

section of the paper and write down the 

names of all the people on the conference 

call. Whenever a person talks for more 

than a sentence or two, put a check mark 

by his or her name. That includes you, too. 

The visual representation of comparing 

listening to talking might hold some 

lessons for you.” 

A number of problems interfere 

with people’s ability to understand 

accurately what another person is trying 

to communicate, says Adam Goodman, 

director of the Center for Leadership 

at Northwestern University. “Am I 

anticipating what the other person is 

about to say? Do I agree or disagree with 

what’s being said? Maybe I’m agreeing 

too quickly and, upon reflection, I’d 

find myself disagreeing later?” he asks. 

“Put simply, there’s more opportunity to 

misunderstand then there is to actually 

understand.”Instead, implement a 

process called active listening. “It’s been 

Be ready to learn 

from the other 

person: while you 

cannot control 

someone else’s 

listening habits, 

you can control 

your own, and that 

involves quieting 

down your mind. - 

says Gregersen 

around for a long time, and works if 

done correctly,” says Goodman. The basic 

concept is repeating back to the speaker 

what you heard. If the speaker agrees that 

what you heard is what he or she intended 

to say, you can move on. If not, the speaker 

needs to reword their statement until the 

listener really does understand. 

Be ready to wait for the person to 

finish speaking before you start talking: 

the most difficult component of listening 

effectively is waiting for a period at the 

end of a sentence before formulating a 

reply, says Leslie Shore, author of ‘Listen 

to Succeed’.“When we begin working 

on a reply before the speaker is finished, 

we lose both the complete information 

being offered and an understanding of the 

kind of emotion present in the speaker’s 

delivery,” she writes in her book.This is 

dangerous, says Gregersen. “When I’m 

the most important thing in the world, 

that’s the moment when I’m most likely 

to be thinking about next thing I’m 

going to say instead of listening to you,” 

he says. “At the very core, that’s what 

going on; I’m declaring to the world I 

am more important than you. That’s an 

uncomfortable moment of self-awareness, 

and a self-serving way of approaching 

life.” 

We all require self-focus, but leaders 

who make a difference are the ones 

who know the purpose is bigger than 

themselves, says Gregersen. “When a 

leader is operating on the edge of what’s 

possible, they’re in strong listening mode,” 

he says. 

The Institute of Internal Auditors 

speaks of “comprehensive listening” - the 

listener is trying to take in everything 

the speaker is putting out: words, 

tone of voice, body language. Often, 

comprehensive listening cannot occur 

early on when meeting someone for the 

first time, because the listener does not yet 

know enough to take in all the material. 

“Critical listening” involves forming 

opinions about what is being said, 

making inferences and separating fact 

from opinion. “Relationship listening” 

is about getting to know the speaker 

instead of simply hearing the speaker’s 

words, understanding the person instead 

of understanding the message. This is the 

sort of listening that helps build rapport. 

The Institute of Internal Auditors 

advises you to know your listening style. 

The accountant should be able to apply 

a variety of listening styles depending 

on the situation: understanding the 

listening styles of others can help you 

deliver messages better.“People listeners” 

show concern for others’ feelings; they 

can exhibit empathy. “Action listeners” 

are focused on the actual words, especially 

the content that is action-oriented. 

“Content listeners” take their time 

digesting material, valuing information 

that is complex. As opposed to action 

listeners, content listeners will be more 

likely to take into account the opinion 

of the speaker. “Time listeners” are the 

watch-tappers; they value only the most 

basic and vital information. This is a style 

that would seem to have a negative effect 

on speakers, but time listeners tend to 

excel at time management and can keep 

speakers on task. 

Whatever your style, you will be a 

better accountant, and a better person, if 

you improve your listening skills. 


33 rd ANNUAL SEMINAR 

Venue: Mombasa • Date: 23 rd - 26 th May 2017 

Theme: Professionals as vanguards of public good; 

introspection from the accountancy profession 

The following topics and presentations have been lined up for the 33rd Annual Seminar 

• Economic Stewardship, the Score Card and the Role of Professionals 

• Seizing Opportunities and Confronting Challenges in Accountancy; 

Lessons and Experiences from the Indian Institute of Accountants (ICAI) 

• The Shifting Playground for Modern Day Accountants 

• Accountability, Transparency and the Rule of Law as Drivers for Inclusive Growth & Development 

• Boardroom Dynamics; the role of Board CPAs 

• Recent Changes and Developments in the Accountancy Profession Globally and impact on Kenya 

• Unlocking the SMEs potential; experiences and lessons of SMPs in Kenya 

• Leadership/ Motivation 

For more information or enquiries please call Tel: +254 (0) 20 2304226, 2304227 

Mobile: +254 (0) 727 531006 / 0733856262 / 0721 469796/ 0721469169 

Email: makokha.wanjala@icpak.com or visit www.icpak.com. 

For Exhibitions and Sponsorships, please get in touch with 

CPA Makokha Wanjala on the above lines or email.

The Accountant-May-June 2017

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