Firms urged to embrace global standards

Business
By Sofia Ali | Aug 03, 2025
Icpak CEO Grace Kamau emphasized that financial reporting is no longer a procedural formality but a strategic requirement for integrity and public trust. [File, Standard]

Kenya’s private and public sector organisations have been urged to embrace International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) as tools to attract capital, boost investor confidence, and enhance global competitiveness.

Speaking during the official launch of the 24th edition of the Financial Reporting (FiRe) Award in Nairobi, key sector regulators reaffirmed their commitment to promoting transparency, accountability, and comparability through internationally recognised financial reporting frameworks.

The event in Nairobi brought together executives from the Capital Markets Authority (CMA), Institute of Certified Public Accountants of Kenya (Icpak), Nairobi Securities Exchange (NSE), Retirement Benefits Authority (RBA), and the Public Sector Accounting Standards Board (PSASB).

Icpak CEO and FiRe Award Executive Committee chairperson Grace Kamau emphasised that financial reporting is no longer a procedural formality but a strategic requirement for integrity and public trust.

Dr Kamau said the FiRe Award continues to be East Africa’s most esteemed and rigorous platform for recognising excellence in financial reporting, corporate governance and sustainability disclosures. 

Originally a modest initiative to promote transparent reporting, it has evolved into a regional benchmark, attracting entries from across East Africa including listed firms, pension schemes, banks, Saccos, public institutions, and non-profits.

“We champion excellence in financial reporting as the foundation of investor confidence. Strong disclosures are the language through which credibility is built,” she said.

“This move will strengthen public financial management, improve accountability, and ensure better service delivery,” she said in remarks delivered by CPA Edwin Tito.

CMA CEO Wycliffe Shamiah, highlighted the importance of timely disclosures and international cooperation, noting Kenya’s May 2025 signing of the Enhanced Multilateral Memorandum of Understanding (EMMoU) on securities regulation.

NSE CEO Frank Mwiti, underscored that the FiRe Award reflects Kenya’s commitment to global financial norms and investor transparency. He reiterated that these years, the FIRE Award is anchored on the theme of "Fostering Compliance with International Standards to Enhance Transparency, Comparability, and Accountability.

This theme speaks directly to the challenges and opportunities that organisations face in today’s evolving financial landscape. The adoption of international financial reporting standards (IFRS), integrated reporting, and enhanced disclosure frameworks are no longer optional, they are essential. These standards provide a common language through which investors, regulators, and the public can evaluate the financial health and long-term value of organizations.

“This award supports our efforts to align capital markets with global best practices. It signals to investors that Kenya values credible and comparable disclosures,” he said.

RBA CEO Charles Machira called on pension schemes and retirement benefits providers to lead by example in governance, sustainability, and transparency reporting.

Participation in the FiRe Award has grown steadily, with entries rising from 793 in 2022 to 1,032 in 2024. Organisers expect even higher numbers this year, driven by growing emphasis on environmental, social and governance (ESG) reporting and sustainability.

ICPAK, through the FiRe Award platform, announced plans to enhance capacity building, expand training on IFRS and IPSAS, and strengthen evaluation criteria to reflect emerging trends such as integrated and climate-related disclosures.

The FiRe Award 2025 evaluation process is now officially open, with the winners set to be announced in early December. 

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