- Saccos face new sustainability reporting requirements from 2027
- Readiness assessment highlights gaps in climate data reporting
- Regulators urged to support simpler reporting systems for Saccos
Deposit-taking Saccos are among seven regulated sectors required to disclose climate and sustainability data from January 1, 2027. The deadline sits within a new global reporting regime, and Kenyan regulators have already begun tracking how ready the sector is.
The Institute of Certified Public Accountants of Kenya (ICPAK) has published its Kenya IFRS S1 and S2 Readiness Report 2026. The report is a national assessment of how prepared Public Interest Entities (PIEs) are for mandatory rollout of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.
Two standards sit at the centre of the shift. IFRS S1 covers general sustainability disclosures, while IFRS S2 focuses on climate-related reporting. Together, they form part of a phased national roadmap that ICPAK published in November 2024.
Under that roadmap, PIEs must begin reporting for accounting periods starting on or after January 1, 2027. Large non-PIEs follow in 2028, and small and medium enterprises (SMEs) join the framework in 2029.
Deposit-taking Saccos regulated by the Sacco Societies Regulatory Authority (SASRA) fall within the first group. Consequently, they join commercial banks, insurance firms, listed companies, pension schemes, fund managers and state corporations reporting under IFRS in facing the earliest deadline.
Three tools shaped the assessment. Researchers used a pre-assessment screen of each entity’s organisational preparation, a 49-item disclosure checklist mapped to four pillars, and a review of disclosure quality. The four pillars were governance, strategy, risk management, and metrics and targets.
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Nineteen of the 33 registered deposit-taking Saccos in ICPAK’s assessment register completed the exercise. Nationally, entities scored an average of 1.51 out of 4 across all sectors. The report describes this as an “Emerging” stage of readiness.
Governance emerged as the strongest pillar overall. Meanwhile, measurable metrics stood out as the area needing the most development.
The report’s central recommendation for the sector avoids reinventing existing structures. Instead, it urges Saccos to build sustainability reporting into systems they already use.
SASRA’s prudential returns system offers one such foundation. The system already captures member deposits and portfolio quality on a regular cycle, making it a ready-made channel for introducing climate-related metrics over time.
Saccos also differ structurally from banks. Given their member-owned, common-bond structure and generally smaller balance sheets, the report recommends right-sized implementation guidance for the sector. Simplified metrics and materiality thresholds, rather than requirements designed for larger listed companies, would better suit Saccos’ scale.
A further suggestion targets duplication of effort. A shared, sector-wide reporting template, developed jointly with SASRA and Sacco apex bodies, would close readiness gaps faster than each Sacco building capacity independently, the report argues.
Cross-cutting advice runs throughout the report for entities preparing for 2027. Disclosures should move from narrative descriptions toward quantified, auditable figures. Existing board oversight of sustainability matters should also link more directly to strategy and target-setting.
For Saccos that have not yet run a climate scenario analysis, the report offers a practical starting point. Rather than waiting for full technical capacity, entities can begin with one simple scenario and build from there.
With just over a year remaining before the first mandatory reporting cycle, the coming months represent a critical window. Saccos now face the task of aligning existing governance and data systems with the new disclosure requirements before the clock runs out.
By Benedict Aoya
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