FIRE AWARD 2018 LAUNCH
Nairobi - August 10, 2018 - The promoters of FiRe Award (Excellence in Financial Reporting Award) have announced the launch of the 2018 edition, with this year’s event focusing on enhancing confidence by deepening best corporate governance practices in the region. The event whose theme is “Leveraging improved financial reporting and corporate governance for economic growth and development in the East African region,” comes at a time when corporate governance is a key concern in the country.
The continued participation of the public sector is key in improving reporting and corporate governance practices in the sector, which is expected to inspire more confidence in public sector entities in Kenya. The public sector participation, follows the adoption of the International Public Sector Accounting Standards as the reporting framework in Kenya in 2014. The promoters of the FiRe Award are; the Public Sector Accounting Standards Board (PSASB), Capital Markets Authority (CMA), Nairobi Securities Exchange (NSE) and the Institute of Certified Public Accountants of Kenya (ICPAK).
The coveted FiRe Award is in its seventeenth year since it was launched in 2002. The public sector entities expected to participate in the 2018 FiRe Award include; Ministries, Departments and Agencies, State Corporations, Semi-Autonomous Government Agencies and the County Governments.
The PSASB Chairman, Mr. Bernard Ndung'u, who is also the Director General of Accounting Services at the National Treasury, said, “Evaluation of public sector entities in FiRe Award is an opportunity for feedback on how excellence in financial reporting and corporate governance can be enhanced. The assessment is benchmarked against global standards through the International Public Sector Accounting Standards.’’
According to the ICPAK Chief Executive, Mr. Edwin Makori, promoting excellence in financial reporting and corporate governance in the public sector is a clear testament to the objective of opening up public sector entities to scrutiny through the FiRe Award evaluation process. Mr. Makori said, ‘’Weak corporate governance and financial reporting may lead to missed opportunities to address concerns which should have been flagged earlier. We encourage entities to enhance value creation through more open financial reporting to ensure business sustainability.”
The Capital Markets Authority Chief Executive, Mr. Paul Muthaura, observed “robust financial reporting and corporate governance practices are key pillars to ensure our capital markets are aligned to global best practices as we position Kenya as the premier choice for investors and issuers on the continent. A sound reporting and disclosure framework ensures investment decisions are based on accurate and timely information which enhances confidence in the capital markets while also lowering barriers to access to capital for issuers. It is only through growth on both the issuance and investor sides that Kenya will achieve its aspiration to move from frontier to emerging market status’’.
Speaking during the launch Mr. Geoffrey Odundo, Chief Executive, NSE said "Corporate governance is now a key concern for investors in the public markets as it has been demonstrated that companies with sound corporate governance practices tend to attract high profile investors. We therefore encourage listed entities, to enter the 2018 FiRe Award as they will be exposed to review and assessment by independent evaluators, enhancing their reporting standards and ultimately boosting investor confidence and participation in our capital markets".
The award ceremony of the FiRe Award 2018 will be held on November 16, 2018 in Nairobi. It will be preceded by a conference to engage key stakeholders on topical issues which will be held on November 15, 2018.
BACKGROUND INFORMATION ON THE FIRE AWARD
The Financial Reporting (FiRe) Award is the most prestigious and coveted Award in East Africa for financial reporting. The Award is presented annually, during a colorful, gala evening hosted by the joint promoters; the Public Sector Accounting Standards Board (PSASB), Capital Markets Authority (CMA), the Nairobi Securities Exchange (NSE) and the Institute of Certified Public Accountants of Kenya (ICPAK). For the last sixteen (16) years, the FiRe Award has recognized and awarded the best reporting entities in East Africa. The Award is aimed at promoting integrated reporting through enhancing accountability, transparency and integrity in compliance with appropriate financial reporting framework and other disclosures on governance, social and environmental reporting by private, public and other entities domiciled in East Africa.
PUBLIC SECTOR ACCOUNTING STANDARDS BOARD (PSASB): The PSASB is a statutory body established under Section 192 of the Public Finance Management Act (PFM) No. 18 of 2012. The Board is mandated to provide frameworks and set generally accepted standards for the development and management of accounting and financial systems by all state organs and public entities.
ICPAK: The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body that regulates the profession of accountancy in Kenya. The Institute has achieved recognition as a professional body for its contribution in finance and accounting education, governance, professional development, maintenance of high accounting, auditing and ethical standards. As a professional body concerned with protection of public interest, ICPAK is one of the most active thought leaders in governance and economic matters in the country and the region.
NSE: The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE), an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE).
CMA: The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes;
Promoting market development through research on new products and services; reviewing the legal framework to respond to market dynamics; promoting investor education and public awareness; and protecting investors’ interest.
For more information visit our website: http://www.fireaward.org