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KCB Cuts Ties With KPMG, Hires NBK Auditor PwC

[IMAGE/ COURTESY]

The Kenya Commercial Bank (KCB) will on Thursday appoint PricewaterhouseCoopers (PwC) as its external auditor, automatically replacing KPMG.

The changes will see KPMG lose at least Ksh55 million in revenues, that KCB parts with every year as auditing fees. This is the second job KPMG is losing less than a year, after losing Absa Group Kenya’s job last year.

“To appoint Messrs PwC, Certified Public Accountants, as the new Auditors of the Company in place of KPMG, Certified Public Accountants whose term expires at the end of this meeting,” reads AGM notice in part.

Also, this is the second topmost job PwC is gaining in less than three years, after being appointed to be the external auditor for Equity Bank in 2017.

Read: CBK Nods To Acquisition of Ksh3.2 Billion Imperial Bank Assets By KCB

PwC has been the external auditor for National Bank which was recently acquired by KCB. With the two jobs, it is expected that the auditing fees will jump to over Ksh100 million annually.

Net earnings increased from Ksh24 billion in 2018 on the back of loan book growth, non-funded income from the digital banking and cost management initiatives across the business.

In Kenya, there are four major auditors that compete for jobs from top lenders, that include KPMG, PwC, Ernst & Young and Deloitte.

For the year ended December 2019, KCB posted a 5 percent jump in profit after tax to Ksh25.2 billion.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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