Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Search
Close this search box.

The Institute of Certified Public Accountants of Kenya (ICPAK), established in 1978 under the Accountants Act No.15 of 2008, serves as the statutory body for setting standards and regulating the accountancy profession in Kenya. As a member of the Pan African Federation of Accountants (PAFA) and the International Federation of Accountants (IFAC), ICPAK is committed to maintaining high standards in financial and non-financial reporting.

On 6 September 2023, ICPAK announced the intention to adopt the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, called S1 (Sustainability-related disclosures) and S2 (Climate-related disclosures), in Kenya. This significant event was attended by key stakeholders, including regulators, corporate users, preparers, representatives from PAFA, the African Union, International Sustainability Standards Board (ISSB) and the IFRS Foundation.

Currently, organizations worldwide face the challenge of navigating multiple fragmented sustainability reporting frameworks. Kenya, too, has experienced various sustainability initiatives, including:

  • Nairobi Securities Exchange Environmental, Social, and Governance Disclosure Guidance
  • Code of Corporate Governance Practices for Issuers of Securities to the Public by the Capital Markets Authority
  • Sustainable Finance Initiative Industry Principles for the banking sector
  • Guidance on Climate-Related Risk Management for the banking sector by the Central Bank of Kenya

Despite these initiatives, the absence of a unified reporting framework has hindered comparability. ICPAK, in collaboration with ISSB, is spearheading the adoption of a global baseline for sustainability-related disclosures that will provide consistent and comparable information for investors and other market participants.

A. Establishment of a Committee

ICPAK as the Kenyan standard setter, commenced collaboration with industry players, regulators, development partners and other stakeholders to ensure preparedness towards adoption of the IFRS Sustainability Disclosure Standards. To facilitate this, ICPAK established a Multi-Stakeholder Sustainability and Climate Change Reporting Committee to develop a Roadmap for Adoption of IFRS Sustainability Disclosure Standards in Kenya.

B. Phased Approach to Adoption

ICPAK requires the adoption of the IFRS Sustainability Disclosure Standards in a phased approach to ensure a smooth transition for organizations of all sizes as provided below. This approach will allow organizations to build capacity, gather necessary data, and align their internal processes with the new standards.

Phase

Timelines (Accounting period beginning on or after)

Organisations Involved

Phase 1 – Voluntary Adopters

1 January 2024

All organisations

Phase 2 – Mandatory Adoption

1 January 2027

Public Interest Entities (PIEs)

1 January 2028

Non-PIEs (Large Enterprises)

1 January 2029

Non-PIEs (SMEs)

Phase 3 – Government Organisations

To be determined by ICPAK

Government organisations

C. Next Steps and Call to Action

ICPAK calls on all Kenyan organizations to:

  1. Build Internal Capacity: Train staff, develop robust systems for data collection and sustainability reporting.
  2. Engage Stakeholders: Actively communicate with investors, customers, employees, and other stakeholders to foster understanding and support for sustainability initiatives.
  3. Leverage ICPAK Resources: Utilize the guidance, tools, and training programs provided by ICPAK for successful transition.

 

ICPAK remains committed to supporting Kenya and all entities within the jurisdiction in understanding and implementing the IFRS Sustainability Standards. Through ongoing training, guidance, and advocacy, ICPAK aims to facilitate a seamless transition to these standards, ultimately contributing to a more sustainable and resilient economy.

Sustainability Guidance

Roadmap for Adoption of IFRS Sustainability Disclosure Standards in Kenya 

Sustainability Reporting Readiness Assesment Survey Results

Technical Bulletin on Sustainability Reporting IFRS S1- general requirements for disclosure of sustainability-related financial information & IFRS S2 – climate-related disclosure  

KENYAN SUSTAINABILITY AND CLIMATE CHANGE STEERING COMMITTEE

CPA Jona Wala-Director Accounting Services, National Treasury & ICPAK Council
CPA Dr. Grace Kamau-ICPAK CEO
CPA Prof. Solomon Ngahu Head of Financial Reporting Unit-National Treasury
Mr. Hillary Korir-Climate Finance & Green Economy Unit
CPA Caroline Mackola, Director Finance- CBK
FCPA Wycliffe Shamiah, CEO NSE
Ms Tamara Cook-CEO, FSD Kenya
Kenya Bankers Association (KBA) Mr Raimond Molenje Ag. CEO, KBA
Mr Akinyemi Awodumila, Deloitte Partner
Mr. Edward Kerich PwC Partner
CPA Gurmit Santokh ,PKF Partner
CPA Maurice Gachuhi KPMG Partner
Mr Godfrey Kiptum CEO, IRA
CPA Peter Njuguna, EBS CEO, SASRA
CPA Risper Genga Ohaga
CPA Zipporah Chege-CFO, ICEA Lion
Karen Basiye
CPA Patrick Ng’ang’a, Lybra Consulting
Antony Mwangi CEO, KAM
Sustainability Consultant CPA Mercy Maina, PKF
CPA Catherine Asemeit
Committee Secretariat CPA Elvis Moenga Assistant Manager- Standards & Technical Services