Kenyans can now expect more transparency and accountability in the management of public resources following the release of the Public Sector Entities Model Internal Audit Manual. The manual, developed by Public Sector Accounting Standards Board (PSASB) in collaboration with the National Treasury, aims to guide government functions.
The Internal Audit Manual is designed to give internal auditors practical tools, clear procedures, and professional guidance to support better governance, risk management, and internal control across all public entities. It provides a structured way of ensuring that every shilling of public funds is accounted for and spent prudently.
“The manual is a game-changer for public sector accountability. It provides practical tools and professional guidance that will enable internal auditors to deliver more effective oversight and support government institutions to achieve their mandates,” said Ms. Georgina Muchai, CEO of PSASB.
The manual is anchored on the Public Finance Management Act, 2012 and aligns with international best practices through the International Professional Practices Framework (IPPF). It is also consistent with the Constitution of Kenya, relevant regulations, and audit committee guidelines, ensuring a uniform approach to internal auditing in both national and county governments.
Speaking during its unveiling, Ms Georgina emphasised that the manual marks a major milestone in the country’s journey toward more transparent governance.
“This manual will help internal auditors across the public sector to bring a systematic and disciplined approach to auditing. It will strengthen how government institutions manage risk, enhance accountability, and ultimately build public trust,” said Ms. Georgina.
One of the key objectives of the manual is to enhance the quality and effectiveness of internal audit work. It provides clear procedures for planning, conducting, reporting, and following up on audits, ensuring that the function meets international standards. It also acknowledges the unique environment of the public sector and offers practical steps that can be adapted to fit different government institutions while remaining compliant with the law.
Ms. Georgina added that the manual will also serve as a reference document for internal auditors, audit committees, and management teams across the country.
“Internal audit is not just a compliance requirement; it is a strategic function that ensures public funds are used for the intended purposes. This manual will help strengthen internal controls and promote good governance in all government entities,” she said.
The manual was developed by PSASB in collaboration with the National Treasury and Heads of Internal Audit from various public entities and is backed by Section 194 of the PFMA, which empowers PSASB to prescribe internal audit procedures. Its introduction follows Gazette Notice No. 11033 of August 2024, which formally adopted the IPPF for use in Kenya’s public sector.