Industries
Audit and compliance for NGOs, from annual accounts to donor audit
Statutory audit, agreed-upon procedures, audit-ready books and tax compliance for NGOs and donor-funded organisations preparing for annual returns and donor audit, from our offices in Nairobi and Mombasa.
NGOs and donor-funded organisations are one of the sectors Adamjee Auditors works in, alongside SMEs, large corporates and SACCOs, from offices in Nairobi's Westlands and in Mombasa.
An NGO in Kenya reports in several directions at once. The NGO Coordination Board expects annual returns that include audited financial statements. KRA expects tax returns and payroll remittances even where grant income is exempt. Each donor sets its own reporting and audit conditions, and these are often stricter than the statutory ones. Falling short on any of them can bring penalties, delayed funding or, at worst, suspension of operations.
We bring the firm's audit, accounting, payroll, tax and advisory services to that work: statutory and external audits under a risk-based methodology aligned to ISA and IFRS, agreed-upon procedures where a funder wants specific figures verified, bookkeeping and reconciliations that keep your records ready for audit, and a review of the internal controls that both donor and statutory auditors will test. If your organisation is still being set up, our guide on registering a self-help group or NGO in Kenya covers the step before all of this.
Sector challenges
Where NGO finance teams come under pressure
Several reporting masters
Organisations funded by more than one donor have to reconcile statutory reporting with each donor's own audit standards. Donor reports that do not agree with the statutory accounts are a recurring compliance problem.
Expenses without eTIMS invoices
KRA now expects allowable expenses to be backed by valid eTIMS invoices. Any expense without one may be disallowed, which affects both tax relief claims and the figures reported to donors.
Controls over donor funds
Weak controls can lead to misappropriation. Auditors look for separation of duties between authorising funds, handling cash and bookkeeping, documented approval of grant spending and regular reconciliation of bank statements against project accounts.
Tax-exempt, but still filing
Exemption on grants does not remove KRA obligations. NGOs with staff or business income must still file returns, income from activities outside the charitable purpose is taxable, and a Tax Compliance Certificate is commonly required for donor funding applications.
How we help
Services for NGOs and donor-funded projects
Audit & Assurance
Statutory and external audits of your annual financial statements, internal audit of controls and governance, and agreed-upon procedures where a donor asks for specific grants, balances or expenses to be tested.
Accounting Services
Day-to-day bookkeeping and reconciliations, management accounts that track performance against budget, and IFRS-aligned records ready for audit.
Payroll
Pay calculated, payslips issued and PAYE, NSSF, SHIF and Housing Levy deducted and filed on time, an obligation NGOs carry like any other employer.
Tax Compliance
KRA returns prepared and filed on time, tax health checks, and advice on where exemption applies and where income falls outside it.
CFO & Business Advisory
Risk management and governance frameworks, cashflow forecasting and board reporting for finance teams that need senior support without a full-time hire.
Company Secretarial
Governance frameworks, board meetings, minutes and resolutions, and statutory registers, for organisations structured as companies.
How an engagement runs
Scoping
We understand your organisation, its funding and its reporting obligations before any fieldwork begins.
Planning
A risk-based audit plan focuses effort where financial consequence is real.
Fieldwork
Evidence-led testing of balances, controls and disclosures — partner-reviewed throughout.
Reporting
A clear opinion plus practical findings your board can act on.
Further reading
Our guides for NGOs and donor-funded organisations
NGO compliance: the NGO Coordination Board and donor audit requirements
Registration and annual returns, donor audit expectations, eTIMS, internal controls and audit readiness.
Accounting and compliance services for NGOs in Kenya
Financial statements, fund management, payroll obligations and common compliance gaps for NGOs.
Agreed-upon procedures audit in Kenya
How targeted verification works, including donor fund validation and project cost checks, and how it differs from a full audit.
How to apply for a KRA Tax Compliance Certificate
Who is eligible for a TCC, what KRA checks and why funding applications often ask for one.
Common questions
NGO audit and compliance questions, answered
Get in touch
Preparing for your next audit?
Speak to our team in Nairobi or Mombasa about your audit, accounting or compliance requirements. Tell us what you need and our team will respond promptly.
Our team will respond promptly.
