As the date for the mandatory adoption of the IFRS sustainability disclosure standards in Kenya draws close, organisations in the first wave of the mandatory adoption phase on January 1, 2027 are working to ensure compliance.
Preparations have also picked up pace recently, and organisations are actively engaged in specific readiness programmes.
For every organisation, understanding which of the three waves of mandatory reporting dates apply is important to prevent the risk of non-compliance.
The Institute of Certified Public Accountants of Kenya (ICPAK) issued a transition document and guide outlining what organisations should consider as they prepare for the adoption of the IFRS sustainability disclosure standards. This guide has influenced organisations’ preparations in various ways.
Organisations in Kenya are building capacity across their organisations for all relevant teams and stakeholders.
It remains an important continuous step for organisations to ensure they gain the understanding and skills needed to perform the required tasks at every step of their sustainability journey.
Organisations are also conducting baselining exercises to assess their current status, identify gaps, and develop a roadmap to address them in time for reporting compliance.
It remains a crucial step because it provides a comprehensive view of all interdependencies across the organisation.
In addition, organisations in Kenya are leveraging industry groups and other sector player platforms to drive efficiency and for knowledge sharing.
Organisations are encouraged to actively participate in their industry forums as they prepare for the mandatory adoption of the IFRS sustainability disclosure standards. On this same front, board directors and executives are upskilling and investing in learning and education to equip them to integrate sustainability into their existing responsibility frameworks.
The climate agenda is another area board directors are paying attention to, to ensure their organisation’s approach is tailored, grounded in reality and adds value to the organisation.
The recent launch of the Chapter Zero Alliance network in Kenya is another forum for board directors and senior leadership to gain practical knowledge, build the right networks, and access the tools needed to integrate climate and nature considerations into governance, risk oversight, capital allocation, and corporate strategy.
Organisations in Kenya should continue to put in place the right people, processes and systems to achieve compliance on the mandatory compliance dates.