National Treasury Cabinet Secretary John Mbadi has made six new appointments to the Public Sector Accounting Standards Board (PSASB), starting with a new chairperson, Pius Mungai Nduatih.
The appointments were officially announced in the Kenya Gazette published on May 9.
According to the Gazette notice, CS Mbadi appointed Nduatih as the new Chairperson of the board, and he will serve in this role for a period of three years.
This appointment was made in line with Section 193(2) of the Public Finance Management Act of 2012.
The notice read:
“In exercise of the powers conferred by section 193(2) of the Public Finance Management Act, 2012, the Cabinet Secretary for the National Treasury and Economic Planning appoints Pius Mungai Nduatih to be the Chairperson of the Public Sector Accounting Standards Board for a period of three (3) years, with effect from the 1st of April, 2025.”
Along with Nduatih’s appointment as Chair, CS Mbadi also named five other professionals to serve as members of the board for the same three-year term.
The newly appointed board members include three Fellows of the Institute of Certified Public Accountants of Kenya (FCPA) and two Certified Public Accountants (CPA). They are:
- FCPA Pius Mungai Nduatih
- CPA Damaris Mumo
- FCPA Edwin Kamar
- FCPA Kipkoech Andrew Tanui
- CPA Leonard Okoth Ouma
These appointments strengthen the leadership of the board, which is tasked with promoting sound financial reporting practices across public institutions.
The Public Sector Accounting Standards Board operates through the Directorate of Accounting Standards (DAS), which is responsible for setting accounting and financial reporting standards for all state organs and public entities in Kenya.
The DAS also defines the required formats for financial statements and outlines the minimum standards for keeping proper books of accounts across all levels of government.
This new development comes on the heels of a major financial reform initiative that CS Mbadi launched just a few months ago.
In a gazette notice dated August 30, 2024, the CS announced the formation of a special Steering Committee to guide Kenya’s transition from a cash-based accounting system to an accrual-based one.
This change is part of a broader plan aimed at improving the country’s financial transparency and management.
The move to accrual accounting was approved by the Cabinet during a meeting held on March 7, with the implementation scheduled to begin on July 1, 2024.
The newly formed Steering Committee, which will serve for three years, is expected to lead and coordinate this critical transition for both national and county governments.
Under the current cash-based system, financial transactions are recorded only when money is received or paid. In contrast, the accrual-based system records income and expenses at the time a transaction occurs, regardless of whether cash has changed hands.
This approach allows for better tracking of public debt, pending bills, and other government liabilities, thereby improving the accuracy and usefulness of financial reports.
The recent appointments and reforms reflect CS Mbadi’s continued efforts to strengthen Kenya’s financial accountability and reporting systems.
The enhanced leadership at the Public Sector Accounting Standards Board and the shift to accrual-based accounting are expected to bring long-term improvements to how government finances are managed and reported.
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