Public Sector Accounting Standards Board (PSASB) has unveiled new and revised annual financial reporting templates for the 2025/2026 financial year, a move aimed at strengthening accountability, transparency and consistency in public sector financial reporting.
PSASB, working in collaboration with the National Treasury, announced the rollout as part of Kenya’s ongoing transition from cash-based to accrual-based accounting.
In a circular dated 15th June 2026, Principal Secretary for the National Treasury, Dr. Chris Kiptoo, directed all Accounting Officers in national and county governments, constitutional commissions, independent offices, state corporations, semi-autonomous government agencies, Technical and Vocational Education and Training (TVET) institutions, Teachers Training Colleges (TTCs), public funds, government-owned enterprises, and public senior schools to adopt the prescribed templates when preparing annual financial statements for the year ended 30th June 2026.
PSASB Chief Executive Officer, FCPA Georgina Muchai, said the new templates mark a major milestone in Kenya’s financial reporting reforms.
“Among the key developments is the introduction of four new reporting templates covering the consolidation of National Government Ministries, Departments and Agencies (MDAs), accountability reporting for the Receiver of Foreign Loans and Grants, Kenya Revenue Authority’s Revenue Accountability Report, and the Government Digital Payments (e-Citizen) Revenue Accountability Report,” she explained.
The revised templates also incorporate requirements arising from the second year of implementing the cash-to-accrual transition roadmap. Public sector entities will now be required to report inventory as a mandatory element alongside financial assets and liabilities.
“Additionally, the reporting formats have been updated to align with newly effective International Public Sector Accounting Standards (IPSAS), including IPSAS 43 (Leases), IPSAS 44 (Non-Current Assets Held for Sale), IPSAS 45 (Property, Plant and Equipment) and IPSAS 46 (Measurement). The existing IPSAS and IFRS financial reporting templates have also been revised to reflect the new standards and stakeholder feedback,” Muchai said.
Public senior schools, which began using a financial reporting template in 2021, will continue with the revised version. The update now requires reporting on inventories, non-current assets, and statements of changes in net assets to support their gradual migration to accrual accounting.
The circular reiterated that all Accounting Officers must prepare annual financial reports that comply with PSASB standards and submit them to the Office of the Auditor-General within statutory timelines.
To facilitate implementation, the National Treasury and PSASB have made the templates available on their websites and pledged continued technical guidance, training, and support to ensure compliance.
Muchai emphasised that the adoption of the revised templates will enhance the credibility of public sector financial statements. “The adoption of the revised reporting templates is expected to improve the quality, comparability and credibility of public sector financial statements to enhance transparency, informed decision-making and public confidence in the management of public resources,” she said.
The rollout is part of Kenya’s broader reforms under the Public Finance Management (PFM) Act, 2012, which requires standardised reporting across the public sector. By moving towards accrual-based accounting, the Government aims to provide a clearer picture of assets, liabilities, and resource utilisation, thereby strengthening oversight and accountability.
The reforms are expected to have far-reaching implications for how public institutions manage and report finances, particularly in ensuring that public resources are used effectively and transparently.
“The adoption of the revised reporting templates is expected to improve the quality, comparability and credibility of public sector financial statements to enhance transparency, informed decision-making and public confidence in the management of public resources,” FCPA Georgina said.
