PSASB Releases New Financial Reporting Templates to Boost Accountability

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.

Public Participation Invitation: Draft QAIP External Assessment Templates

PSASB invites stakeholders to submit comments on the Draft QAIP External Assessment Templates by 8th April 2026.

The Public Sector Accounting Standards Board (PSASB) invites all stakeholders to submit comments on the Draft Quality Assurance and Improvement Programme (QAIP) External Assessment Templates.

The templates have been developed to strengthen:

  • Conformance to the Global Internal Audit Standards (GIAS) and the relevant regulatory framework
  • Achievement of performance objectives
  • Continuous improvement of internal audit functions in the public sector

Your feedback matters in shaping public sector audit standards in Kenya.

Access the Draft Templates:
psasb.go.ke/consultation-papers-and-exposure-drafts

Submit your comments to:
auditstandards@psasb.go.ke

Deadline: 8th April 2026

When submitting comments, please use the table format below:

S/NoTemplate NameArea of ConcernRecommendationJustification
     
     

For further inquiries, contact us at info@psasb.go.ke or call 020 251 1557.

OAG, PSASB Join Hands to Enhance Efficiency in the Use of Public Resources

The Office of the Auditor-General (OAG) and the Public Sector Accounting Standards Board (PSASB) on Wednesday 4th February 2026 signed a Memorandum of Understanding (MoU) to strengthen financial accountability structures and advance their shared commitments to enhancing accountability and transparency in the public sector.

The partnership aims to promote the adoption and implementation of high-quality accountability standards across public sector entities, while facilitating information and expertise exchange between the two institutions to improve financial reporting and auditing practices.

“Public trust is earned through transparency and accountability. And in that regard, our role is simple: to confirm whether public money has been applied lawfully and effectively. This is a broad responsibility that requires us to go beyond account certification and compliance. In doing so, we follow the standards set or prescribed by PSASB,” Auditor General, FCPA Nancy Gathungu, CBS, said during the signing off event.

The Auditor General said that PSASB plays a central role in setting accounting and financial reporting standards, prescribing internal audit procedures, and guiding all public sector entities on best practices in financial management.

“Our mandates are distinct yet deeply interconnected. High-quality financial reporting is the foundation for high-quality public audits. When public entities prepare financial statements that are accurate, compliant, and credible, the audit process becomes more effective, more efficient, and more meaningful,” the Auditor General said.

She added that OAG and PSASB functions complement each other. She said that while PSASB’s mandate is to set accounting and financial reporting standards for the public sector, her office provides practical insights into how those standards operate in real institutions, under real constraints. It is thiscomplementarity of mandates that made the collaboration beneficial.

“I am glad that the Board, through the FiRe Awards, both at the Regional and National levels, recognises efforts by entities to prepare and promote integrated reporting. This has enhanced accountability, transparency, and integrity in financial reporting. Indeed, the Awards are a great motivation to entities,” the Auditor General said.

PSASB chairman, FCPA Pius Nduatih, who was also present during the event, said that the Board has made significant progress in transitioning public sector entities from cash to accrual accounting. Some of the achievements realized include the issuance of standardized accrual reporting templates, guidelines, and capacity-building for entities to prepare accrual-based financial statements.

The chairman also added that both entities are confident that the partnership will contribute to measurable improvements: higher-quality public sector financial statements, better decision-making by Parliament, county assemblies, and other oversight bodies, and greater citizen trust in the management of public resources.

PSASB CEO, FCPA Georgina Muchai, reaffirmed PSASB’s commitment to professional collaboration grounded in mutual respect; to transparency, confidentiality, and the responsible management of intellectual property; and, above all, to delivering tangible improvements in public sector financial management.