8.2: Ensure international reporting and disclosure standards

Measurement

More reliable financial reporting standards for investors

Working Group
WG3
Implementation Progress

To ensure sound and reliable financial reporting, the following amendments were made to the Capital Markets Act:

Section 8 of the Capital Markets (Amendment) Act 2018 provides for amendment to the Capital Markets Act to include a new Section 30 GA of the Capital Markets Act, it states that:

  • Issuers, licensed and approved persons shall devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in conformity with the IFRS
  • An issuer of securities, a licensed or an approved person shall not falsify its books or record of accounts or financial statements or report financial statements not in line with the IFRS.
  • An officer or director of an issuer, a licensed or an approved person or any other person acting under the direction thereof, shall not take any action to mislead an auditor engaged in the performance of an audit or review of the financial statements of that issuer, licensed or approved person that such action would render the issuer's financial statements materially misleading as to their completeness and correctness.

Section 10 Capital Markets (Amendment) Act 2018 provides for amendment to the Capital Markets Act to include a new Section 32K A which states that ‘ Any person who on his own  action or conspires with another by deceit, intentional concealment, omission or any fraudulent means to obtain financial or personal gain from the public, an issuer or a regulated person commits an offence.’

Timelines
2014-2016
 
Status
In Progress (Behind Schedule)
Measurement
An independent Kenyan auditor oversight body established.
Working Group
WG3
Implementation Progress

Extensive submissions have been made to World bank project on design of an independent audit oversight entity.

Timelines
2014-2016
 
Status
In Progress (Behind Schedule)