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Mandate and Function

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What we do

Our Mandate

The mandate and functions of PSASB are established in Part VI of the Public Financial Management Act i.e. Sections 192 to 195 of the Act.

The purpose or mandate of the Board can be summarised as follows:

  1. Set generally accepted accounting and financial standards for the Public Sector.
  2. Prescribe and pronounce generally accepted internal auditing standards.
  3. Mainstreaming of best practices for good governance, internal controls and risk management in the Public Sector.
  4. PSASB is, therefore, established as the ‘de facto’ and only authorized setter of financial accounting and internal audit standards for the Public Sector in Kenya.

Our mission

Prescribe and promote the adoption of accounting, internal audit, and risk management standards in the public sector.

Our Vision

Transparent and Accountable Public Sector

Our Function

The specific functions to be undertaken by the Board are clearly outlined in Section 194 of the PFMA, 2012.

  1. The Accounting Standards Board shall provide frameworks and set generally accepted standards for the development and management of accounting and financial systems by all State organs and public entities, and shall in particular perform the following functions:
    1. Set generally accepted accounting and financial standards.
    2. Prescribe the minimum standards of maintenance of proper books of account for all levels of Government.
    3. Prescribe internal audit procedures which comply with the PFM Act.
    4. Prescribe formats for financial statements and reporting by all state organs and public entities.
    5. Publish and publicise the accounting and financial standards and any directives and guidelines prescribed by the Board.
    6. In consultation with the Cabinet Secretary on the effective dates of implementation of the standards, gazette the dates for application of the standards and guidelines.
    7. Perform any other functions related to advancing financial and accounting systems management and reporting in the Public Sector.
  2. In setting the above standards, the Board shall take into account any relevant factors including:
    1. Best international accounting practices.
    2. The capacity of the relevant entity to comply with the standards.
  3. The Board may set different standards for different categories of entities to which these standards apply including to develop content, structure and format of county frameworks and accounting and financial guidelines which are in line with the setting of county standards.
  4. The Board shall monitor the adherence to the standards by all State organs and public entities.
  5. The standards set by the Board shall promote transparency and other Constitutional values and principles in effective, prudent and efficient management of revenue, expenditure, assets and liabilities of the institutions to which these standards apply.