The Public Sector Accounting Standards Board (PSASB) has launched its 2021/2022 – 2025/2026 strategic plan at the Sarova Panafric Hotel, Nairobi.
The Strategic Plan is poised to provide PSASB with the blueprint and necessary framework in executing its core mandate and tracking the performance of commitments against set targets.
In a speech read on his behalf by the Treasury’s Principal Administrative Secretary Amos Njoroge, National Treasury and Planning Cabinet Secretary (CS) Amb. Ukur Yatani stated that the 2021/2022 – 2025/2026 strategic plan would provide a financial framework to support achievements of the Third Medium Term Plan (MTP III) and that of the vision 2030.
He added that the MTP III advocates for supervision, strengthening and a framework within which public institutions report on financial issues.
Yatani mentioned that the National Treasury has a role to play in formulation and maintenance of government accounting standards and oversight over revenue; development and enforcement of financial governance standards and oversight; management of national and county governments financial systems and standards; development of Kenya as an International Financial Centre and acting as the custodian of national government assets and property.
“All these can’t be achieved without proper financial reporting and it’s worth noting that the PSASB has been a critical player in providing the much needed guidance in setting the accounting standards as well as prescribing the minimum requirements in maintenance of proper books of accounting by all levels of government,” the CS noted.
He lauded PSASB for its contribution to this goal by setting internal audit standards in all public sector entities.
“In this regard, PSASB has laid notable strategies in their plan that will be critical in the strengthening of reporting institutions and sustainability through enhanced and end user productivity and efficiency,” said Yatani.
Yatani further threw his weight behind PSASB’s ability to take up the challenge of domesticating International Sustainability Standards which will improve on enterprise value and enhance information presented that is material to investor decisions and other participants in the capital markets.
“These disclosures will make the Kenyan economy a more competitive investment destination as it will provide a globally consistent and comparable sustainability reporting baseline, while providing flexibility for coordination on reporting requirements that capture wider sustainability impacts,” he maintained.
The CS reiterated the government’s commitment to support PSASB’s laid down roadmap on the need to transition public sector entities that are currently reporting on Cash Basis Accounting Framework to Accrual-Based Accounting Framework.
He also assured all the stakeholders that the end user productivity and efficiency would be safe guarded by leveraging on technology to improve operational efficiency of the general public sector.
At the same time, PSASB Chairman Mr Pius Nduatih said that the new strategic plan is expected to perform well as the 2015/2016-2020/2021 plan which had a great achievement of 84 percent according to the available statistics and this is attributed to the contribution from The National Treasury and Planning Ministry.
He further highlighted the key focus that would help in playing a part in the 2021/2022 – 2025/2026 strategic plan including standard setting and research, and capacity building which involves establishing effective relationships with key stakeholders.
“The other two key focuses would be checking for implementation of compliance and institutional strengthening,” Nduatih added.
The Chairman disclosed that the strategic plan would last for the next five-year period and would require approximately Kshs 3.3 billion to be funded by the exchequer.
“The money will play a big role in providing resources for the organization as it embarks on its new strategic plan,” he reiterated.
In her remarks, the Auditor General Nancy Gathungu noted, “If we can develop and strengthen internal audit and audit committees and they ensure that they are supported and facilitated to do their work continuously and also ensure the internal audit function is played strategically within the structure of the public sector entities, then we can fill those remaining gaps.”
Also in attendance at the event was the controller of budget Dr. Margaret Nyakang’o and PSASB Chief Executive Officer (CEO) Fredrick Riaga.
The Associations of the Professional Societies in East Africa (APSEA), the Kenya Institute for Public Policy Research and Analysis (KIPPRA) and the World Bank were acknowledged for their support in developing the strategic plan 2021/2022 – 2025/2026.
By Stanslaus Mbithi and Bruno Rono