Kenya’s National Treasury has directed government accounting officers to identify and value public assets by June, as the Executive moves to adopt a new financial reporting standard that records income and expenses when earned or incurred—not when cash changes hands.

Treasury Principal Secretary Chris Kiptoo, in a circular dated April 14, 2025, seen by The EastAfrican, also instructed the accounting officers to appoint project managers and establish cash-to-accrual transition committees at entity level to oversee the switch.“In financial year 2024/2025, accounting officers are required to identify all the assets in their control or use, irrespective of proof of ownership and whether or not they can determine their values. Entities are required to report on all assets under their control. Where entities can identify and determine the values of assets, these should be recorded in the financial statements as early as possible," the memo said.

Members of the cash-to-accrual transition committees will be drawn from various departments or directorates of the implementing entities and should include accounts, finance, public works, human resources, internal audit, ICT and asset management departments.

The project manager will be appointed from among the staff of the implementing entity.

The Treasury in February this year approved the valuation of all assets that Kenya owns as part of the move to shift the government’s operations to a new reporting plan by 2027.

The Cabinet approved the transition on March 7, 2024 and in August the same year the National Treasury assembled a steering committee chaired by Dr Kiptoo to oversee the transition from the cash-based accounting system that has been in use since 2014.

The project whose total cost is estimated at Ksh3.1 billion ($24 million), is supported and supervised by the World Bank and the International Monetary Fund.

Kenya has set a three-year roadmap (July 1, 2024 to June 30, 2027) to consolidate all government assets and liabilities into a single balance sheet that will show the state’s true financial position and help save on the cost of foreign borrowing.

Treasury says the policy shift will improve transparency in the management of public debt and pending bills and help the government negotiate cheaper loans from foreign lenders.

The identified asset classes for valuation include land, natural resources, road and rail infrastructure, electricity generation and distribution, water infrastructure and intangible assets.

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