Adoption History
Kenya

IFRS was set to be the accounting standard in Kenya in 1998 by the council of ICPAK (Institute of Certified Public Accountants of Kenya) ( Worldbank. 2001. Page 4).  All financial statements covering periods beginning January 1, 1999, must be prepared in accordance with IASs. IASs are required for enterprises of all types and sizes, both listed and non-listed (Deloitte Touche – International Financial Reporting Standards, Page 4). Even though there was no laws for listed companies to prepare their financial statement according to IAS, listed companies were advised by the Capital Markets Authority (CMA) to follow IASs. The rule changed in June 2001 when CMA made IASs mandatory for accounting and financial reporting by all listed companies. The Banking Supervision Department of the Central Bank of Kenya used its legal authority to require individual banks to disclose information in compliance with IASs (Worldbank. 2001. Page 5). However, due to limited resources and the lack of supervision in Kenya, there are gaps between applicable accounting standards and the actual accounting practices. In the Self-Assessment Questionnaire submitted to IFAC by ICPAK in 2005, it was further confirmed that the requirement for adopting IFRS has been legalized for both listed and non-listed companies in the Companies Act in the latest amendment in 2002 (
Assessment of the Regulatory and Standard-Setting Framework -Institute of Certified Public Accountants of Kenya, 2005, Section 4). Kenya is in the fourth stage of the adoption process by the above, and this completes the adoption process.

Reference:

Worldbank. 2001. Report on the observance of standards and codes (ROSC) – Kenya. Retrieved from http://www.worldbank.org/ifa/kenyarosc.pdf 
 
 IFAC (2005, August). Assessment of the Regulatory and Standard-Setting Framework -Institute of Certified Public Accountants of Kenya. Retrieved from IFAC: Member Body Compliance Program at http://www.ifac.org/ComplianceAssessment/published_survey.php?MBID=KEN1