[PHOTO/kbc.co.ke]

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The Kenyan financial system is set to be thrown into a serious turmoil in two months after the new accounting system comes into force.

According to the Capital Markets Authority, most listed companies are not likely to gain compliance with the International Financial Reporting System-IRFS9 that comes into force on January 1, 2018.

Capital Market Head of Market Development Justus Agoti has said that a taskforce bringing together all players in the financial system is currently compiling a report on corporate Kenya’s preparedness to switch to the new accounting standard.

Even though the clock is fast ticking, each passing day is clear evidence that corporate Kenya will be caught unprepared by the new accounting regime, International Financial Reporting System-IFRS 9.

The country's policy makers and accountants are not ready to implement it since there are no guidelines to aid in the application of IFRS-9.