Kenya to adopt accrual accounting as IFMIS undergoes major system overhaul
By Kiprono Keileb, February 12, 2026Treasury Principal Secretary Chris Kiptoo has provided an update on Kenya’s move to transition from cash-based to accrual-based accounting, showing the government’s efforts to improve transparency and accountability in public finances. He outlined the role of the Integrated Financial Management Information System (IFMIS) in supporting this major reform.
In a statement shared on X on Thursday, February 12, 2026, Chris Kiptoo explained how the reform is expected to enhance financial reporting across all government departments while providing a single source of truth for public accounts.
“The transition to accrual accounting is a critical reform that strengthens transparency, accountability, and comprehensive financial reporting, in line with the Public Finance Management Act, 2012. As Kenya advances through its phased implementation roadmap, the IFMIS Department continues to play a central role in enabling this transformative shift,” Kiptoo stated.
The PS also shared insights from the technical working group assessing the country’s readiness for the new system and highlighted the importance of ongoing system improvements.
“I received an update from the technical working group on the status of the IFMIS Readiness Assessment, including our preparedness for transitioning from cash-based to accrual-based reporting. The engagement highlighted the rationale for the reform, ongoing IFMIS re-engineering initiatives, and the system enhancements required to support the transition,” he explained.
He added that the IFMIS system will be updated to handle all aspects of accrual-based financial reporting, ensuring accurate and timely accounting across government operations.
“The IFMIS system will be re-engineered to accommodate all financial management reforms and serve as the single source of truth for accrual-based accounting across the Government,” Kiptoo said.