Dr. Grace Kamau, Chairperson of the Award Executive Committee and CEO of ICPAK, speaking at the launch of the FiRe Award 2024 on Tuesday, August 27, at Nairobi Hotel.
By Peace Muthoka.
The 2024 edition of the Financial Reporting (FiRe) Award has been officially launched, with the aim of improving accountability and transparency across Kenya’s private and public sectors. This year’s theme, “Championing for Effective Sustainability Reporting through Technology and Innovation to Enhance Transparency,” highlights the increasing importance of sustainability disclosures in financial reporting.
The FiRe Award, now in its 23rd year, is organized by the Institute of Certified Public Accountants of Kenya (ICPAK), the Public Sector Accounting Standards Board (PSASB), the Nairobi Securities Exchange (NSE), the Capital Markets Authority (CMA), and the Retirement Benefits Authority (RBA). These organizations work together to encourage companies and public entities to report comprehensively on their environmental, social, and governance (ESG) practices. By doing so, the award aims to promote transparency and align Kenya’s reporting standards with global sustainable development goals.
During the launch, Dr. Grace Kamau, Chairperson of the Award Executive Committee and CEO of ICPAK, underscored the importance of sustainability reporting in advancing corporate responsibility. “By adopting International Financial Reporting Standards (IFRS), specifically IFRS S1 and S2, we provide frameworks that help enterprises effectively monitor, manage, and disclose their sustainability impacts and climate-related risks,” Dr. Kamau stated. She added that ICPAK is committed to creating awareness through workshops and roundtable events to support companies in this transition.
NSE Chief Executive, Mr. Frank Mwiti, also emphasized the need for sustainability reporting, noting its role in helping companies manage risks and attract investment. “We strongly believe that private companies will be better placed to meet growing stakeholder demands for transparency on how businesses manage their impacts on the environment, economy, and society,” Mwiti said. He highlighted that integrating ESG metrics into financial reports not only addresses regulatory demands but also strengthens investor confidence and corporate governance.
Echoing these sentiments, Ms. Georgina Muchai, Acting CEO of PSASB, called on public sector entities to embrace ESG reporting. “ESG is becoming a critical concern for regulators, investors, and standards bodies. Public sector entities have an opportunity to demonstrate transparency and accountability, paving the way for new regulations around sustainability reporting,” Muchai remarked. She stressed that incorporating ESG practices into their strategies would help manage risks and enhance long-term performance.
In the pension industry, RBA CEO Mr. Charles Machira pointed out the growing demand for sustainability disclosures. “Stakeholders are increasingly calling for transparency on how pension schemes manage sustainability issues. Adopting ESG principles not only promotes good governance but also enhances confidence in the pension sector,” Machira said, highlighting the relevance of ESG principles in boosting stakeholder trust.
CMA CEO, Mr. Wyckliffe Shamiah, noted the growing significance of sustainability and climate-related disclosures for publicly listed companies. “The recent publication of standards for Sustainability-related Financial Information (IFRS S1) and Climate-related Disclosures (IFRS S2) by the International Sustainability Standards Board (ISSB) marks an important step towards a global baseline for sustainability reporting. This will support transparency and comparability in capital markets,” Shamiah explained.
Technology is playing a pivotal role in advancing sustainability reporting, as it enables accurate data collection, real-time monitoring, and comprehensive analysis of ESG metrics. “By leveraging advanced tools like data analytics and artificial intelligence, we can streamline reporting processes and ensure data integrity, making it easier for companies to meet global sustainability requirements,” Mwiti added. The NSE has been proactive in promoting sustainability, having introduced the region’s first ESG Disclosures Guidance Manual, which aligns local practices with international standards.
As the 2024 FiRe Award kicks off, companies across Kenya are encouraged to participate and showcase their commitment to sustainability. The award ceremony, traditionally held in December, will recognize those that excel in providing comprehensive financial and sustainability reports, demonstrating their dedication to transparency, innovation, and responsible business practices.
