INPAS: Kenya's coming non-profit accounting standard
What the International Non-Profit Accounting Standard is, what ICPAK's October 2025 advisory says about adopting it, and how firms can prepare NPO clients.
By Achekam · · 4 min read · For Accountants & audit firms in Kenya
Ask the finance officer of a Kenyan NGO how its statements are prepared and the answer is often "IFRS, more or less". The "more or less" covers a lot: restricted grants tracked in spreadsheets, donor reports prepared on a different basis from the audited accounts, and notes that try to explain fund balances using a framework designed for companies with shareholders.
A purpose-built standard for non-profits now exists, and ICPAK has said Kenya will adopt it. For firms that prepare or audit statements for NGOs, foundations, churches, schools run as trusts and similar organisations, this is the time to understand what is coming and to start the conversation with clients.
Why a non-profit standard at all
ICPAK, the statutory body established under the Accountants Act Cap 531 with the mandate to develop and regulate the accountancy profession in Kenya, has explained the case plainly. It states that IFRS Accounting Standards do not adequately address non-profit areas such as fund accounting, donor restrictions, or the need for detailed narrative reporting. It notes that IFRS was developed primarily for for-profit entities, focusing on the needs of investors and creditors.
Anyone who has prepared statements for a donor-funded organisation will recognise the gaps. A non-profit's readers are donors, members, beneficiaries and regulators. They want to know whether restricted money was spent as agreed, what the organisation achieved, and whether it can keep going. A framework built around returns to investors answers those questions only indirectly.
Approval and launch
ICPAK reports that the Technical Advisory Group approved the final version of the International Non-Profit Accounting Standard, known as INPAS, on 23 July 2025. ICPAK states that the official global launch was held on 21 October 2025 in Geneva, Switzerland.
ICPAK's advisory and the roadmap
On the same date as the launch, ICPAK issued a technical advisory. Dated 21 October 2025, it confirms that INPAS will be adopted in Kenya.
The advisory also says ICPAK is seeking feedback on adoption readiness and on the standard's proposed timelines, leading to a detailed INPAS Adoption Roadmap to be issued by 1 January 2026. The advisory was written before that roadmap, so it cannot say what the roadmap contains. Check ICPAK for the roadmap as issued, including any effective date and transition arrangements, before advising clients on timing. ICPAK's advisory on adopting INPAS in Kenya explains the adoption and why IFRS and IPSAS do not fully meet the reporting needs of non-profit organisations.
The relief available when a non-profit first applies the standard is a separate subject, covered in INPAS transitional relief.
What is likely to change for Kenyan non-profits
ICPAK's reasons for adopting INPAS point to the areas where clients should expect the biggest differences:
| Area ICPAK names | Why it matters for an NPO client |
|---|---|
| Fund accounting | Balances and movements may need to be shown by fund, not just in total |
| Donor restrictions | Restricted and unrestricted resources need to be identified and tracked |
| Narrative reporting | Statements may need more explanation of activities and use of resources |
The detail of each requirement is in the standard and in ICPAK's roadmap, and should be read there. What a firm can do now is identify which clients will be affected and how ready their records are. An organisation that already tracks grants by donor and by restriction in its ledger will find the move easier than one that reconstructs fund balances from donor reports at year-end.
Clients currently choosing between full IFRS and the IFRS for SMEs Standard will also face a new option to consider. The present choice for smaller entities is discussed in choosing a financial reporting framework for Kenyan SMEs.
Setting each NPO client's framework in Achekam
Achekam lets a firm record, per client, the basis the work follows. Each client's profile has a Jurisdiction section holding the client's own country and identifiers. Each Kenyan engagement then shows its governing basis: the regulator, the standards, the framework, the company law and the tax authority. A jurisdiction override is decided by a different person, so a change to the governing basis is not one preparer's call.
That governing basis is where a firm can make the framework decision visible for each NPO engagement, and revisit it once ICPAK's roadmap sets dates.
The statements Studio is the second piece. Its standard accounting policy wording is based on IFRS for SMEs and is labelled for review before issue. Staff can also write their own policies, and notes take their figures from the mapped trial balance. For a non-profit adopting INPAS, the firm would write the policies itself rather than rely on the SME-based wording, because that wording was not drafted for a non-profit standard.
Preparing the client list
- List every client that is a non-profit or prepares statements for donors.
- Record the framework each uses today and who decided it.
- For each, note how restricted funds are tracked: in the ledger, in spreadsheets, or not at all.
- Read ICPAK's roadmap as issued and note the dates that apply.
- Plan conversations with the clients furthest from ready, starting with their fund tracking.
- Prepare the firm's own INPAS policy wording and have a second person review it.
- Brief engagement teams before the first period the standard covers.
The conversation to have now
The most useful step is a short meeting with each non-profit client's finance lead, before the audit season, to explain that a dedicated standard is coming and to look at how their funds are recorded today. The accounting will follow the roadmap; the records need to be ready before it does.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
