Kenya’s financial regulators have renewed their push for stronger compliance with international reporting standards.
They said public and private organisations must follow IFRS and IPSAS to improve accountability and strengthen the country’s capital markets.
In a joint statement released on Friday following a FiRe Award conference in Nairobi, the organisers – ICPAK, the Capital Markets Authority, the Public Sector Accounting Standards Board, the Nairobi Securities Exchange, and the Retirement Benefits Authority – stated that Kenya cannot grow its financial markets without consistent and transparent reporting.
“A coalition of Kenya’s leading financial regulators is intensifying the push for public and private sector entities to adhere strictly to International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS),” they said.
ICPAK CEO Grace Kamau said that proper reporting is key to good governance and public trust. She said transparent financial information helps investors make decisions and supports national growth.
“Adherence to International Standards is the cornerstone of sound governance, accountability and public trust. When institutions embrace high-quality and transparent reporting, they do more than protect their stakeholder. Transparent reporting drives national growth, deepens investor confidence, and elevates Kenya’s standing as a market built on credibility, resilience, and ethical leadership,” she said.
Her comments come as investors continue to complain about inconsistent reporting across Kenyan companies. Many say these gaps make it harder to assess risk and put money into the Nairobi Securities Exchange (NSE).
NSE CEO Frank Mwiti said the theme of this year’s FiRe Award reflects global efforts to harmonise financial reporting. He said companies that follow international standards improve their credibility and support the growth of the capital markets.
Regulators warned that companies that fail to comply with IFRS risk lower valuations, reduced liquidity and possible penalties.
Public entities that do not follow IPSAS could face poor audit results and may struggle to get favourable financing from lenders like the World Bank and IMF.
PSASB CEO Georgina Muchai said IPSAS is critical for transparency in the public sector. She said Kenya’s move to full accrual accounting by 2028 will help track public money better and support the standards required under the Constitution.
Listed companies, banks and state corporations already follow IFRS, but compliance across the wider private sector remains uneven. ICPAK has focused more on training than enforcement, leaving many SMEs with weak reporting practices.
CMA CEO Wyckliffe Shamiah said globalisation and digital financial systems have changed how regulators work. He said they now rely on faster information sharing and greater collaboration to improve investigations and enforcement.
The regulators said they plan to take firmer action going forward. Public bodies that fail to comply with IPSAS rules may face immediate audit consequences.
Listed companies could face fines, trading suspensions or delisting for serious breaches. They said the goal is to speed up compliance and reduce financial risks, not to punish institutions.
RBA CEO Charles Machira praised pension schemes in the FiRe Award for showing strong reporting and good governance, saying this protects members’ savings.
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