A New Era of Accountability By CPA Francis Ugango The global accounting landscape is evolving rapidly, driven by an urgent demand for transparency, sustainability, and accountability. Over the past two years, two major developments have emerged with far-reaching implications for Kenya’s private and non-profit sectors: the adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards S1 and S2, and the introduction of the International Non-Profit Accounting Standard (INPAS), the world’s first dedicated global accounting framework for non-profit organisations. These developments, guided by the Institute of Certified Public Accountants of Kenya (ICPAK), promise to transform how entities in Kenya report on financial performance, sustainability, and social impact. The IFRS S1&2 Roadmap In September 2023, ICPAK announced its intention to adopt the International Sustainability Disclosure Standards (IFRS S1 and IFRS S2) issued by the International Sustainability Standards Board (ISSB). IFRS S1 sets out the general requirements for disclosure of sustainability-related financial information, while IFRS S2 focuses specifically on climate-related disclosures. The standards became effective globally for reporting periods beginning on or after 1 January 2024, with Kenya adopting them in phases. Under this plan, voluntary adoption began in 2024; public interest entities (PIEs) will adopt mandatorily by 1 January 2027, large non-PIEs by 2028, and SMEs by 2029. Guidance for the public sector will follow once ICPAK concludes consultations with the relevant authorities. This roadmap reflects Kenya’s commitment to align with global sustainability reporting practices and to embed Environmental, Social, and Governance (ESG) principles into corporate accountability. Early adopters—particularly listed companies and those seeking international capital—will enjoy enhanced investor confidence and improved access to funding. The ability to communicate how sustainability risks and opportunities affect enterprise value is fast becoming a prerequisite for investment. Companies that act early can expect a competitive advantage in sectors such as manufacturing, financial services, and agriculture, where