ICPAK has confirmed that Kenya’s roadmap for the IFRS Sustainability Disclosure Standards is on course. IFRS S1 covers general sustainability disclosures and IFRS S2 covers climate. Here is when each group of organisations has to start, for accounting periods beginning on or after these dates.
- Public interest entities: 1 January 2027. This includes NSE-listed companies, banks, insurers, pension schemes, fund managers, deposit-taking SACCOs and large state-controlled entities.
- Large companies that are not public interest entities: 1 January 2028. These are companies that exceed two of three thresholds: turnover above KES 100 million, total assets above KES 250 million, or more than 250 employees.
- Other SMEs: 1 January 2029.
- Government entities reporting under IPSAS: 1 July 2028.
Assurance comes in stages
Sustainability reports will need assurance too, starting with limited assurance and moving to reasonable assurance. For public interest entities, limited assurance starts in 2028. For large non-public interest companies it starts in 2029, and for SMEs in 2030.
Why start now if your date is 2028
The first report needs comparable data, and much of that data, such as energy use, emissions and supplier information, is not captured by most accounting systems today. Lenders and large customers are also starting to ask for it before the law requires it. ICPAK encourages companies with turnover above KES 1.3 billion to prepare early.
A sensible first step
Start with a readiness review: what you would need to disclose, what data you already have, and who owns each piece. Public interest entities must submit a readiness assessment to ICPAK before their first disclosures. Talk to us about where your organisation stands.