What is Public Sector Accounting?

Public sector accounting is the systematic process of recording, classifying, and reporting financial transactions of government entities and public institutions.

Key Distinction from Private Sector:

• Private businesses focus on profit maximization
• Public sector entities manage public resources on behalf of citizens
• Public sector accounting emphasizes stewardship, transparency, and accountability

In Kenya, public sector accounting operates within a robust framework comprising:

• Constitutional provisions 2010
• Legislative requirements (particularly the PFM Act, 2012)
• International standards (IPSAS)
• Professional oversight bodies

This framework ensures public money is managed responsibly and financial information is faithfully reported to stakeholders including:

• Citizens
• Parliament and County Assemblies
• Oversight bodies (Auditor-General, Controller of Budget)R
• International lenders and development partners