About Us

Transforming Kenya's Public Financial Management through Modern Accounting Standards

Project Background

The transition to accrual-based accounting is established under the Public Finance Management Act, providing a comprehensive framework for transforming Kenya's public financial management system through modern accounting standards and practices.

Legal Framework

Constitutional Basis

  • Public Finance Management Act (Cap. 412A)
  • Section 194(1)(f) - Implementation dates
  • Section 192 - PSASB establishment

Regulatory Framework

  • International Public Sector Accounting Standards (IPSAS)
  • Gazette Notice No. 5440 of 2014
  • Current Gazette Notice (August 12th, 2024)

Role of PSASB

Core Functions

  • Setting accounting standards
  • Prescribing minimum standards
  • Developing reporting formats

Implementation Oversight

  • Framework provision
  • Standards setting
  • Compliance monitoring

Implementation Strategy

The transition to IPSAS follows a structured three-year implementation plan, designed to progressively transform public sector accounting practices through capacity building, technical support, and systematic adoption of international standards.

Scope of Implementation

  • Primary Government Entities:
    • National Government and its departments
    • County Governments and their entities
    • National Government Entities
    • Public Funds and Government Projects
  • Educational Institutions:
    • Technical Training Colleges
    • Teacher Training Colleges
  • Special Considerations:
    • State corporations with commercial activities continue with IFRS
    • All other public sector entities to transition to IPSAS

Steering Committee

The IPSAS Implementation Steering Committee provides strategic direction and oversight for the transition to accrual-based accounting across Kenya's public sector.

Committee Structure

  • Chairperson - PSASB Chairperson
  • Vice Chairperson - National Treasury Representative
  • Technical Committee Representatives
  • County Government Representatives
  • Development Partners Representatives

Key Responsibilities

  • Provide strategic direction for IPSAS implementation
  • Monitor implementation progress and milestones
  • Review and approve implementation frameworks
  • Coordinate stakeholder engagement
  • Oversee capacity building initiatives

Technical Working Groups

  • Financial Reporting Standards
  • Capacity Building and Training
  • Systems and Technology
  • Change Management
  • Quality Assurance

Implementation Oversight

A comprehensive oversight framework ensures the successful transition to IPSAS, with dedicated phases for planning, execution, and review, supported by technical working groups and regular monitoring of implementation milestones.

Phase 1: Planning and Preparation
  • Establish implementation frameworks
  • Develop training materials
  • Set up monitoring mechanisms
Phase 2: Implementation
  • Monitor adoption progress
  • Provide technical support
  • Coordinate capacity building
Phase 3: Review and Support
  • Evaluate implementation success
  • Address challenges
  • Ensure sustainability
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