RELEASE OF THE NATIONAL ROADMAP FOR ADOPTION OF THE INTERNATIONAL NON-PROFIT ACCOUNTING STANDARD (INPAS) IN KENYA
The Institute of Certified Public Accountants of Kenya (ICPAK) is the statutory body of Accountants established by the Accountants Act CAP 531.The Institute is also a member of the Pan Africa Federation of Accountants (PAFA) and the International Federation of Accountants (IFAC), the global umbrella body for the accountancy profession.
ICPAK is pleased to announce the launch of the National Roadmap for the Adoption of the International Non-Profit Accounting Standard (INPAS) in Kenya. This milestone underscores the Institute’s commitment to strengthening transparency, accountability, comparability, and public trust in the non-profit sector.
- Why INPAS?
Kenya’s non-profit sector plays a critical role in advancing social, economic, environmental, and humanitarian objectives. However, financial reporting practices across the sector have historically been influenced by varying donor requirements, regulatory expectations, IFRS-based reporting, and other reporting frameworks. This has often resulted in inconsistent reporting approaches, reduced comparability, and increased reporting burdens for organizations operating across multiple funding and regulatory environments.
Recognizing the need for a globally consistent reporting framework for non-profit organizations, the International Non-Profit Accounting Standard (INPAS) was developed through the International Financial Reporting for Non-Profit Organizations (IFR4NPO) initiative. IFR4NPO is a global project bringing together standard setters, regulators, accounting professionals, donors, and non-profit organizations from across the world to develop high-quality, internationally recognized financial reporting guidance tailored to the unique nature and operating environment of non-profit entities.
The introduction of INPAS provides an opportunity to establish a harmonized global reporting framework tailored to the unique characteristics of non-profit organizations. The standard aims to:
- Improve the quality, consistency, and comparability of financial reporting;
- Enhance donor confidence and stakeholder trust;
- Strengthen governance, stewardship, and accountability;
- Support more effective decision-making by boards, regulators, donors, beneficiaries, and management.
As a member of the global accounting profession and a strong advocate for high-quality financial reporting, ICPAK has actively supported the IFR4NPO initiative and the development of INPAS particularly as a member of the technical advisory group. ICPAK participated in stakeholder engagement, awareness creation, and capacity-building efforts aimed at ensuring that the perspectives and practical realities of Kenyan and African non-profit organizations are reflected in the development of the standard. The Institute remains committed to supporting the adoption and implementation of INPAS to strengthen accountability, transparency, and public trust within Kenya’s non-profit sector.
- ICPAK’s Adoption Approach
To support successful implementation, ICPAK has established a Multi-Stakeholder INPAS Technical Subcommittee under the Professional Standards Committee (PSC) comprising regulators, development partners, practitioners, and representatives from the non-profit sector.
The Committee will guide:
- Development and implementation of the National INPAS Adoption Roadmap;
- Ensuring alignment with Kenya’s Public Financial Management (PFM) reforms and accountability frameworks;
- Producing Kenya-specific implementation guidance and illustrative reporting templates;
- Supporting stakeholder consultations and exposure processes;
- Recommending transition timelines and readiness considerations.
- Phased Implementation Timeline
Phase 1: Awareness, Capacity Building and Voluntary Early Adoption
Effective from 1 January 2026
Key focus areas:
- Sector sensitization and awareness;
- Voluntary alignment with INPAS principles;
- Introduction of structured narrative reporting;
- Pilot implementations and technical guidance.
Phase 2: Structured Implementation and Enhanced Narrative Reporting
Effective from 1 January 2027
Key focus areas:
- Mandatory adoption of INPAS financial reporting requirements;
- Strengthened narrative reporting practices;
- Rollout of standardized reporting templates;
- Expanded professional training and technical support.
Phase 3: Full Sector Integration and Institutionalization
Effective from 1 January 2028
Key focus areas:
- Full compliance with both financial and narrative reporting requirements of INPAS;
- Post-implementation monitoring and continuous improvement;
- Ongoing technical support and guidance.
- Entities to be Impacted
The roadmap is expected to be relevant to qualifying non-profit entities including:
- Public Benefit Organizations (PBOs);
- Companies Limited by Guarantee;
- Charitable Trusts and other qualifying trusts;
- Community-Based Organizations (CBOs);
- NPOs operating under Host Country Agreements or established as foreign branches of Companies domiciled abroad
- Certain societies and other public-benefit entities that meet the INPAS definition of a qualifying non-profit organization.
Entities should assess eligibility based on their objectives, governance arrangements, public-benefit purpose, and whether surpluses are retained for public benefit rather than distributed to members or owners.
- What Should Organizations Do Now?
ICPAK encourages non-profit organizations and practitioners to begin preparations by:
- Assessing current financial and narrative reporting practices against INPAS requirements;
- Reviewing governance and accountability frameworks;
- Strengthening financial management and reporting systems;
- Investing in staff training and professional development;
- Participating in ICPAK technical forums, consultations, and capacity-building programmes.
The adoption of INPAS marks a significant step towards enhancing accountability, transparency, and credibility within Kenya’s non-profit ecosystem while aligning the sector with emerging international best practices.
The full roadmap can be accessed through the link alongside: https://www.icpak.com/INPAS-Kenyan-Roadmap
For further inquiries on financial reporting, adoption of standards, and other related technical matters please reach out to the Standards & Technical Services Directorate and the Professional Standards Committee of ICPAK at: technicalservices@icpak.com or through ceo@icpak.com
CPA DR GRACE KAMAU
CHIEF EXECUTIVE OFFICER
