Accountants of Kenya (ICPAK) has unveiled a roadmap for adopting the IFRS Sustainability Disclosure Standards. This initiative aligns Kenya’s financial reporting practices with global standards, strengthening the nation’s commitment to sustainability and transparency.
Why the Shift? ICPAK highlights that sustainability reporting is crucial for Kenya’s development, addressing climate risks and aligning with international best practices.
Currently, fragmented frameworks hinder comparability across sectors, but IFRS standards will streamline reporting and offer a unified approach.
The goal is to make sustainability data more accessible and reliable for investors, regulators, and stakeholders.
A Phased Rollout The adoption process is set in stages:Voluntary Adoption (2024–2026): Organisations can begin preparations through readiness assessments.
Mandatory Implementation (2027–2029): Large enterprises, SMEs, and PIEs will gradually be required to comply.
Public Sector Review: Standards for government bodies will align once public sector sustainability standards are in place.
“I would like to commend the businesses and public sector entities that have initiated the integration of sustainability into their operations and reporting practices.We eagerly anticipate the developments in this adoption process over the coming years” Said Grace Kamau- CEO of ICPAK .
Support and Accountability To ease the transition, ICPAK has formed a Multi-Stakeholder Sustainability Committee and will provide guidance, training, and assurance services.
The roadmap also includes measures for transparency, mandatory stakeholder engagement, and phased assurance levels leading to full compliance by 2032.
A Vision for Sustainable Growth ICPAK’s chairman, CPA Philip Kakai, emphasized the broader impact of this move, noting that Kenya is poised to become a leader in sustainable corporate practices.
“Kenya is entering a new era in corporate governance and financial reporting. The adoption of the IFRS Sustainability.
Disclosure Standards will formalize sustainability disclosures, ensuring companies provide relevant, reliable, and comparable data on essential environmental, social, and governance (ESG) factors for investors, consumers, and communities” said CPA Philip Kakai, ICPAK chairman.
He urged businesses to adopt the standards not only as a regulatory measure but as a commitment to environmental and social responsibility, reinforcing Kenya’s economic resilience and sustainability goals.
