FiRe Award Promoters Push for Compliance with International Standards
Nairobi, Kenya, 4th December 2025…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).
The push – spearheaded by promoters of the Fire Award namely the Institute of Certified Public Accountants of Kenya (ICPAK), Capital Markets Authority (CMA), Public Sector Accounting Standards Board (PSASB), Nairobi Securities Exchange (NSE) and Retirement Benefits Authority (Kenya) (RBA) – aims to enhance corporate transparency and accountability, a move seen as critical to deepening local capital markets and compliance with international standards.
“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,” CPA Dr. Grace Kamau, ICPAK CEO, said during the FiRe Award conference held in Nairobi.
This concerted push is a direct response to pressure from institutional investors demanding globally comparable financial disclosures. Lack of standardisation has been repeatedly cited as a key friction point, deterring international fund managers from committing significant capital to the NSE and other local ventures.
NSE CEO, Frank Mwiti, said that this year’s theme “reflects the accelerating global shift toward harmonised reporting frameworks and the growing need for organisations to align with internationally recognised standards. With globalisation, compliance with these standards strengthens institutional credibility. For the NSE, this Award reinforces the pillars on which strong capital markets are built.”
The promoters argue that uniform IFRS compliance is mandatory for building investor confidence. For publicly traded companies, failure to comply risks market penalties, lower valuations, and reduced liquidity, while for the public sector, it threatens the efficacy of external audits and the ability to secure favourable terms on multilateral funding from organisations like the World Bank or IMF. The outcome of this regulatory drive is a crucial bellwether for Kenya’s ambition to solidify its position as East Africa’s premier financial hub and a potential first‑world economy.
“The rigorous application of IPSAS is the foundational pillar of accountability in the public sector. It is the non-negotiable investment needed to build citizen trust, secure favourable international funding, and ensure every shilling spent is tracked with precision. The adoption and implementation of accrual accounting, particularly by public sector entities, enhances transparency and accountability, which are key principles of public finance as envisioned by the Constitution,” Ms Georgina Muchai, PSASB CEO, said during the event.
While IFRS remains mandatory for all listed companies, financial institutions, and government-owned entities, compliance enforcement remains uneven across the wider corporate landscape. Historically, ICPAK, the primary professional body, has focused on a strategy of capacity building in the private sector, rather than instituting immediate disciplinary measures. This approach has left a significant compliance gap among the thousands of smaller private companies and Small and Medium-sized Enterprises (SMEs), where the level of accurate financial disclosure is reportedly low.
The CMA Chief Executive Officer, Wyckliffe Shamiah said that “CMA recognises that the regulatory oversight approach has changed due to increased globalisation, interconnectedness of financial markets, and advancements in technology. This has prioritised enhanced and timely information sharing and cooperation, as support pillars of effective investigation of breaches and enforcement actions.’’
The regulators are now signalling a shift toward stricter sanctions. Entities in the public sector that fail to conform to IPSAS rules, which Kenya is aiming to transition fully to the accrual basis by 2028, face immediate repercussions in the form of qualified audit opinions. For listed firms, non-compliance could lead the CMA to impose significant fines or even initiate a trading suspension or delisting process. The ultimate goal of the regulators is not punitive, but rather to use these higher stakes to accelerate the adoption of global standards, thereby mitigating domestic financial risk and ensuring the corporate governance framework meets the rigorous requirements of international capital. The theme for this year’s Award is “fostering compliance to international standards to enhance transparency.”
The CEO of RBA, Charles Machira, added that “Excellent financial reporting and robust governance are the foundation of public trust in the retirement sector. The RBA’s mandate is securing members’ funds, and that security is directly correlated with the standards of transparency upheld by our regulated entities. We commend the pension schemes that submitted entries to participate in the FiRE Award 2025 for setting the standards and demonstrating their unwavering commitments to disclosure that assures every Kenyan that their retirement savings are being managed with the highest level of integrity.”
About the FiRe Award
The Financial Reporting (FiRe) Award is a prestigious and coveted Award in East Africa for financial reporting. The Award is conducted annually by the joint promoters. The Award aims to promote integrated reporting by enhancing accountability, transparency, and integrity, in compliance with relevant financial reporting frameworks and other disclosures on governance, social, and environmental reporting, among private and public sector entities in East Africa.
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About the Promoters
ICPAK:
The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body that regulates the profession of accountancy in Kenya. The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body of accountants established under by the Accountants Act of 1978, and as repealed under the Accountants Act Number 15 of 2008, mandated to develop and regulate the Accountancy Profession in Kenya. It is also a member of the International Federation of Accountants (IFAC), the global umbrella body for the accountancy profession. For more information, please contact: Head of PR and Corporate Communications, on Email: mercelline.maroma@icpak.com
PSASB:
The Public Sector Accounting Standards Board (PSASB) was established under sections 192 to 195 of the Public Finance Management (PFM) Act 2012. The Board is mandated to provide frameworks and set generally accepted accounting standards for the development and management of accounting and financial systems and internal audit procedures by state organs and public entities, as outlined in Section 192 -195 of the PFM Act 2012. For more information, please contact: Head of Corporate Communications, on Email: benuel.bosire@psasb.go.ke
NSE:
The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE), an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE). For more information, please contact: Senior Officer, Communications, on Email: bmbogo@nse.co.ke
CMA:
The Capital Markets Authority (CMA) is charged with the prime responsibility of regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. CMA’s regulations include licensing and supervising all the capital market intermediaries; ensuring compliance with the legal and regulatory framework by all market participants; regulating public offers of securities such as equities and bonds and the issuance of other capital market products; promoting market development; reviewing the legal framework to respond to market dynamics; promoting investor education and public awareness; and protecting investors’ interest. For more information, please contact: Manager Corporate Affairs & International Relations on: amwangi@cma.or.ke
RBA:
The Retirement Benefits Authority (RBA) was established under the Retirement Benefits Act and is mandated to regulate and supervise the establishment and management of retirement benefits schemes; protect the interests of members and sponsors of retirement benefits sector; promote the development of the retirement benefits sector; advise the Cabinet Secretary, National Treasury and Economic Planning on the national policy to be followed with regard to retirement benefits industry and implement all government policies relating to the retirement benefits industry. For more information, please contact: Head of Corporate Communications, on Email: jratemo@rba.go.ke
