Directorate Of Accounting Standards Highlights In The Public Sector

Public Sector Accounting Standards Board (PSASB) through the Directorate of Accounting Standards (DAS) has trained over 250 school auditors from the Directorate of Schools Audit Services, at Ministry of Education, who will be trainers of public secondary school bursars on the implementation of the just released financial reporting template.

The preparation of the financial annual statements is in accordance with the International Public Sector Accounting Standards (IPSAS) and Section 81(1) of the Public Finance Management Act, 2012 that requires, at the end of each financial year, each National Government School to prepare financial statements in respect of that school.

Over the past years, DAS has supported the public sector entities by providing reporting templates that conform to the IPSAS reporting framework prescribed by the Board.


Going back in time, on 8th August 2014, PSASB through gazette notice number 5440 approved the adoption of reporting frameworks as follows:

  • The National and County Governments and their respective entities – IPSAS cash based standard.
  • The Semi-Autonomous National and County Government Agencies – IPSAS accrual-based standards.
  • The State and County corporations carrying out commercial activities -International Financial Reporting Standards
  • Regulatory and non-commercial State and County Corporations – IPSAS accrual-based standards.

Lately, the DAS has developed the following guidelines to aid public sector entities in the application of standards.

  • Guideline on IPSAS 2 Cash Flow Statement
  • Guideline on IPSAS 17 Property Plant and Equipment
  • Guideline on IPSAS 24 Presentation of Budget information in the financial statement
  • Guideline on IPSAS 16 Investment Property

The DAS has also been instrumental in encouraging public entities to participate in the Financial Reporting (FiRe) Award. In 2020, the Fire Awards attracted 244 Public Sector entities from across the country.

The climax for the event was the FiRe Awards Conference and Award Ceremony that took place on 26th March 2021. The Chief Guest for the event was Retired Chief Justice David Maraga. The event was also attended by the Chief Administrative Secretary of the National Treasury, Nelson Gaichuhie.

During the event, some of the entities awarded from the public sector include:

  • National Intelligence Service
  • Winner State Department for Co-operatives
  • Kenya Electricity Generating Company Ltd
  • Kenya Deposit Insurance Corporation
  • Competition Authority of Kenya
  • Kenya Tsetse and Trypanosomiasis Eradication Council
  • National Authority for Campaign Against Drug Abuse
  • Kenya National Commission of Human Rights
  • National Cohesion and Integration Commission
  • Independent Policing Oversight Authority
  • Bomet County Assembly

DAS continues to dispense its mandate to promote sound financial reporting in the public sector.