Kenya is advancing toward enacting a groundbreaking Internal Auditors Act that will safeguard the internal auditing profession from litigation, victimisation, and undue executive interference while significantly strengthening accountability in the public sector.
The proposed legislation seeks to create a strong disciplinary framework to uphold global auditing standards and professional ethics. It will grant internal auditors greater operational independence — a vital element for their role in assessing governance, risk management, and internal controls across organisations.
The push for the Act comes amid persistent challenges revealed in Auditor-General reports. Roughly 79% of audit recommendations remain unimplemented or only partially addressed by government entities, undermining legislative oversight and efforts to curb mismanagement of public resources.
Data from the Office of the Auditor-General (OAG) for the period up to late 2025 showed that only 21% to 27% of recommendations were fully implemented, with the majority either ignored or only partially acted upon. Between 2022 and 2025, the OAG issued just 7,312 reports against a target of 9,658, largely due to resource constraints.
Auditors have emphasised that evidence-based approaches, rigorous evaluation criteria, and clear reporting are essential to avoid repeated findings and translate audit insights into tangible improvements.
If passed as anticipated, the Internal Auditors Act will mark a major step in professionalising the field and reducing waste in public finances. It is expected to provide legal protections for auditors while introducing mechanisms to discipline those who fail to comply with standards.
Calls for Independence at IIA Kenya Awards
The developments were highlighted during the Internal Audit and Risk Awards 2026 held in Nairobi, organised by the Institute of Internal Auditors Kenya (IIA Kenya) in partnership with the Public Sector Accounting Standards Board (PSASB). The event, themed “Internal Audit and Risk Management Excellence: Elevating Standards”, brought together professionals from the public and private sectors to celebrate outstanding contributions to ethics, quality, and value delivery in auditing.
Speaking at the gala, IIA Kenya Chairperson Lilian Wangechi stressed the importance of independence and integrity.
“Auditors must work independently, uphold integrity, and adhere to the highest ethical standards. This Act will protect them even as they engage stakeholders,” she said.
Georgina Muchai, CEO of the Public Sector Accounting Standards Board, pointed to ongoing hurdles such as lack of support from chief executives and accounting officers, coupled with chronic underfunding, which continue to hamper internal audit functions.
“The Act is expected to address these gaps by legally guaranteeing independence and providing mechanisms to discipline non-compliant members,” she noted.
Muchai added: “When the internal auditor is empowered and able to work without fear of victimization, good governance will be established within our organizations.”
Pius Nduatih, Chairman of the Public Sector Accounting Standards Board, echoed these sentiments, linking strong internal audit functions directly to improved transparency and accountability — priorities that remain central to Kenya’s national agenda.
Additional Measures and Future Outlook
IIA Kenya has already launched a Member Protection Framework to shield professionals from retaliation when they uphold ethical standards. The institute also reported significant growth in its student membership, which now stands at around 800, aimed at building a robust talent pipeline through mentorship and networking.
The first final draft of the Internal Auditor’s Bill has been circulated to members, with a feedback forum scheduled for Tuesday, April 14.
Stanley Mwangi, Deputy Auditor-General, urged leadership and management to treat internal audit reports with urgency.
“Leadership and management should take internal audit reports seriously and act promptly on them to identify and mitigate risks early, fix loopholes, reduce losses, and lower the cost of corrections,” he said.
Mwangi highlighted that adopting the 15 principles from the 2024 Global Internal Audit Standards would promote greater professionalism, uniformity in reporting, and consistency across national, regional, and international levels.
“This will enhance the government’s initiative of having a zero-fault audit regime in the public sector. Internal auditors will play a big role in seeing the success of that zero-fault audit initiative,” he added.
Government reforms, including the zero-fault audit initiative, were cited as complementary efforts to elevate accountability. Auditors at the event reiterated that excellence in internal auditing remains crucial for protecting public resources, fostering public trust, and supporting sustainable development in both public and private institutions.
