INPAS (International Non-Profit Accounting Standard) is a global accounting standard created specifically for NGOs, charities, and non-profit organisations. In Kenya, it helps organisations prepare clear financial statements, report grants properly, and track restricted and unrestricted funds accurately.

Can professional firms help with INPAS implementation?

Yes. Professional accounting and advisory firms can help organisations prepare for INPAS by reviewing grant reporting, fund tracking processes, and financial statements to align with the new standards.

INPAS Accounting Standard for Non-Profits in Kenya – 2026 Guide

Q: When is INPAS effective in Kenya?

INPAS is currently being implemented in Kenya under guidance from ICPAK. The adoption roadmap has begun, and organisations are encouraged to start preparing for compliance.

Q: Can I apply INPAS on my own?

Yes. INPAS is freely available together with a practice guide. However, organisations with multiple donors, projects, or complex grants may benefit from professional support to ensure a smooth transition and reduce reporting errors.

Q: Where can I learn how to implement INPAS in Kenya?

ICPAK leads INPAS training and sector sensitisation in Kenya. Organisations can attend ICPAK training events and visit the ICPAK website to access announcements, learning materials, and recorded sessions where available.

Q: Who should attend INPAS training?

INPAS training is useful for NGO and non-profit accountants, finance managers and directors, board members, auditors, and audit staff responsible for financial reporting and compliance.

Q: What is the difference between INPAS and IFRS for NGOs in Kenya?

INPAS is specifically designed for non-profit organisations and focuses on donor restrictions, grant income recognition, fund accounting, and narrative reporting. IFRS for NGOs adapts general international accounting standards for non-profits but is not tailored specifically to NGO sector needs.

INPAS Accounting Standard for Non-Profits in Kenya

February 6, 2026

Estimated read time: 3 minutes

If you run, manage or account for an NGO, foundation, charity or not-for-profit organisation in Kenya, you’ve probably asked yourself:

“Which accounting standard is actually meant for us?”

For a long time, the honest answer has been: none — not really.

That is exactly why the INPAS Accounting Standard for Non-Profits in Kenya is such an important development for your organisation.

This simple guide by Mugo & Company explains INPAS in plain language — what it is, why it matters to you, and how it will affect non-profits in Kenya.

Table of Contents:

What is the INPAS Accounting Standard for Non-Profits in Kenya?
Key Principles: Simplified Overview of the INPAS Standard for Non-Profits
The Foundation of the INPAS Accounting Standard for Non-Profits in Kenya
INPAS Launch: Timeline and Global Adoption
What is INPAS used for in Kenya?
Who does INPAS affect in Kenya – Key Benefits and Goals for Non-Profits
Overall Goal of INPAS in Kenya
INPAS adoption in Kenya
INPAS Transition Period in Kenya – What You Should Know
Your Next Steps – Prepare Your Organisation for INPAS Adoption in Kenya
Get professional support from Mugo & Company
FAQs on the INPAS Accounting Standard for Non-Profits in Kenya
Disclaimer

What is the INPAS Accounting Standard?

INPAS stands for the International Non-Profit Accounting Standard.

Simply put,It is the first global accounting standard designed specifically for NGOs, charities, and other non-profit organisations.

So instead of forcing your NGO to “fit” into business accounting rules, INPAS is written for organisations like yours — charities, NGOs, foundations and other not-for-profits.

If you have been searching for a clear and practical INPAS Accounting Standard for non-profits in Kenya, this is exactly what it refers to.

Confused about how INPAS affects your nonprofit’s financial reporting in Kenya?

Mugo & Company can guide your NGO through INPAS adoption, so your reports are clear, compliant, and donor-ready.

Request your FREE Consultation with Mugo & Co today WhatsApp

Key Principles of INPAS for Non-Profits in Kenya

In very simple terms, INPAS guides you on:

how to prepare your organisation’s financial statements,
how to account for grants and donor funding, and
how to report restricted and unrestricted funds clearly.

It is specifically applies to:

small, medium and large non-profit organisations, and
organisations that use accrual accounting.

It does not apply to:

Very small (micro) organisations, and
it is not meant for organisations with public (investor-type) accountability.

Simple example

If your NGO receives a donor grant to run a two-year health project, you do not record all the money as income when it is received.
Under INPAS, you recognise income as you deliver the project activities.

This helps your financial statements reflect what your organisation actually did, not just what it received.

The Foundation of the INPAS Accounting Standard for Non-Profits in Kenya

The INPAS Accounting Standard for Non-Profits in Kenya isn’t built from scratch—it’s designed to make nonprofit accounting clear, consistent, and globally aligned.

Here’s what forms its foundation:

1. Built on IFRS for SMEs

INPAS leverages the internationally accepted IFRS for SMEs Accounting Standard but adapts it specifically for non-profit organisations in Kenya.

This ensures your financial reporting is both credible and practical.

2. Incorporates Public-Sector Guidance

INPAS also draws from public-sector accounting frameworks, helping NGOs and charitable organisations align with regulatory and donor expectations.

3. Tailored for Non-Profit Needs

Unlike general business accounting standards, INPAS directly addresses the areas that matter most for your organisation:

Donor-Restricted Funds – Track exactly how donor money is used.
Grant Income Recognition – Recognise income as projects are delivered, not just when cash is received.
Fund Accounting – Separate and manage restricted vs unrestricted funds easily.
Narrative Reporting – Explain your impact, not just your numbers.
Stewardship of Donor Resources – Demonstrate accountability and transparency.

Quick Tip:

Think of INPAS as “business-style accounting – redesigned for non-profits.”
It ensures your financial statements reflect not only what you received but what you achieved.

INPAS Launch: Timeline and Global Adoption

The INPAS Accounting Standard for Non-Profits in Kenya has gone through a rigorous development and consultation process to ensure it meets the unique needs of NGOs, charities, and other non-profit organisations.

Development Journey

During its early stages, INPAS was called INPAG (Guidance).
2020: A public Consultation Paper was released to gather feedback from global and Kenyan stakeholders.
2022–2024: Three exposure drafts were issued, allowing non-profits, auditors, and regulators to provide input.

Final Approval and Global Launch

July 2025: The final INPAS standard was officially approved.
October 2025: The global launch took place, marking the start of adoption readiness in countries like Kenya.

What is INPAS used for in Kenya?

The INPAS Accounting Standard for Non-Profits in Kenya is designed to help NGOs, charities, and other non-profits prepare clear, accurate, and donor-ready financial statements.

Core Financial Statements under INPAS

With INPAS, your organisation can prepare:

Statement of Financial Position – showing your assets, liabilities, and net assets.
Statement of Activities / Income and Expenditure – detailing all revenue, grants, and expenses.
Cash Flow Statement – tracking the movement of funds in and out of your organisation.
Notes to the Accounts – explaining accounting policies, fund allocation, and other essential disclosures.

INPAS Practice Guide 1 – Simplifying Donor and Project Reporting

INPAS comes with a practical toolkit for NGOs:

This guide:

Standardised format for project and grant reports.
Reduces the burden of dealing with different donor templates, multiple reporting formats, and repeated re-work.

Who does INPAS affect in Kenya – Key Benefits and Goals for Non-Profits

The INPAS Accounting Standard for Non-Profits in Kenya impacts three main groups: your organisation, funders, and auditors.

Understanding these benefits will help you prepare for adoption and maximize compliance.

Stakeholder	How INPAS Helps You / Your Organisation
Your Organisation – NGOs & Non-Profits	*– Simplify your financial reporting, producing clear and consistent statements.* *– Standardise your grant and project reporting, reducing donor confusion.* *– Track restricted and unrestricted funds, ensuring accurate fund allocation.* *– Boost your credibility with donors by demonstrating accountability and transparency.* *Example:* *If you manage three donor-funded projects, INPAS helps you clearly show which funds are restricted, which are unrestricted, and how much of each grant is still unspent.* *Your reporting becomes more accurate, professional, and trustworthy.*
Your Funders and Donors	*– Build trust in your financial reports.* *– Improve comparability between your organisation and others.* *– Simplify grant accountability, making oversight and decision-making easier.*
Your Auditors and Regulators	*– Provide your auditors and regulators with a consistent and clear reporting framework.* *– Reduce grey areas in your financial reporting.* *– Improve audit quality and confidence in your statements and compliance outcomes.*

Overall Goal of INPAS in Kenya

The main goal of the INPAS Accounting Standard for Non-Profits in Kenya is to help you and your organisation achieve:

Better transparency in financial reporting – so you can produce clear and accurate reports that donors and stakeholders can trust.
Stronger accountability – ensuring you demonstrate responsible use of funds and compliance with donor and regulatory requirements.
Greater trust in the non-profit sector – building credibility for your organisation and increasing confidence from donors, partners, and regulators.

Tip: By adopting INPAS early, you can streamline your donor reporting, reduce audit queries, and demonstrate leadership in financial governance.

INPAS adoption in Kenya

The INPAS Accounting Standard for Non-Profits is being implemented in Kenya under the guidance of the Institute of Certified Public Accountants of Kenya (ICPAK).

ICPAK is working with the Public Benefit Organisations Regulatory Authority (PBORA) to support a smooth sector transition.

Get INPAS Training

ICPAK offers practical training to help you prepare accurate financial statements and manage donor and project reporting under INPAS.
To access upcoming training or recorded sessions, visit ICPAK and check the events or training section. Recordings may be available after payment.

INPAS Transition Period in Kenya – What You Should Know

When adopting INPAS in Kenya, your organisation has a transition period to adjust smoothly:

First two years: Focus on the main financial statement requirements. Narrative reporting is exempt during this period.
From the third year: Your reports must include both financial statements and a narrative report.

This phased approach allows you to gradually implement INPAS while ensuring compliance and accurate reporting.

Not sure how to record donations, grants, and expenses accurately?

We help NGOs and non-profits implement INPAS step by step — simple, accurate, and stress-free.

Request your FREE Consultation with Mugo & Co today WhatsApp

Your Next Steps – Prepare Your Organisation for INPAS Adoption in Kenya

To ensure a smooth transition to INPAS for non-profits in Kenya, follow these key steps:

Step	What You Should Do
Review how you recognise grant income	*Check whether you record income only when cash is received or based on project performance.* *INPAS focuses on performance-based recognition and donor conditions.*
Track restricted and unrestricted funds clearly	*Ensure your reporting shows:* *Restricted vs unrestricted funds* *Project balances* *Unspent grants*
Strengthen your documentation	*Keep accurate records of funding agreements, approvals, and project activities to comply with INPAS reporting requirements.*

Following these steps will make your financial reporting compliant, transparent, and donor-ready.

Get professional support from Mugo & Company

With over 40 years of combined accounting and audit experience, Mugo & Company helps NGOs and non-profits in Kenya like yours prepare for the INPAS Accounting Standard for Non-Profits.

We can help you:

Assess your INPAS readiness and identify gaps
Review grant accounting and fund tracking for accurate reporting
Prepare for the transition with best practices for financial statements
Align donor reports with INPAS Practice Guide 1

Book a free consultation today and make your organisation INPAS-ready, donor-ready, and audit-ready.

Would you like us to assist you with:

Prepare your NGO for INPAS, align donor reports, and produce audit-ready financial statements?

Click the WhatsApp button to book your free consultation with Mugo & Company now.

Or email us at info@mugo-co.com

FAQs on the INPAS Accounting Standard for Non-Profits in Kenya

1. What is INPAS?

INPAS (International Non-Profit Accounting Standard) is the first global accounting standard created specifically for NGOs, charities, and non-profit organisations.

In Kenya, it helps you prepare clearer financial statements, report grants properly, and track restricted and unrestricted funds accurately.

2. When is INPAS effective in Kenya?

INPAS is currently being implemented in Kenya, guided by ICPAK.
The formal adoption roadmap has started, and organisations are encouraged to begin preparing for compliance immediately.

3. Can I apply INPAS on my own?

Yes. INPAS is freely available along with its practice guide.
However, if your organisation has many donors, projects, or complex grants, professional support can make your transition smoother and reduce errors.

4. Where can I learn how to implement INPAS in Kenya?

ICPAK leads INPAS training and sector sensitisation in Kenya.

You can:
Attend future ICPAK INPAS training events, and
Visit the ICPAK website to access announcements or recorded sessions (available after payment where applicable).

5. Who should attend INPAS training?

The Training is ideal for:

NGO and non-profit accountants
Finance managers and directors
Board members
Auditors and audit staff

6. Can Mugo & Company help with INPAS implementation?

Yes. Mugo & Company can help you prepare for INPAS, review your grant reporting, fund tracking, and financial statements.
Book a free consultation today and get your organisation INPAS-ready, donor-ready, and audit-ready.

7. What’s the difference between INPAS and IFRS for NGOs in Kenya?

INPAS is made specifically for non-profits. It focuses on: donor restrictions, grant income recognition, fund accounting, and narrative reporting.
IFRS for NGOs adapts general international accounting standards for non-profits but isn’t tailored to NGO-specific needs.

In short: INPAS is NGO-focused, IFRS for NGOs is a general framework.

You can learn more about IFRS for NGOs in Kenya in our article: IFRS for NGOs in Kenya

Disclaimer

This guide is for general information only and does not replace professional advice.

Always consult your accountant, auditor, or financial advisor for guidance specific to your NGO or non-profit organisation when implementing the INPAS Accounting Standard in Kenya.