Financial Accountability : Books of Accounts for Societies In Kenya

Section 26 of the Societies Act in Kenya underscores the importance of financial transparency and accountability within registered societies.

Let’s delve into the key provisions of Section 26:

Key Provisions of Section 26

Requirement for Books of Account (Subsection (1))

Every registered society is mandated to maintain one or more books of account. These books should comprehensively record all financial transactions, including details of all monies received and payments made by the society.

Penalties for Contravention (Subsection (2))

Failure to adhere to the requirement outlined in subsection (1) is considered an offence. Any registered society that contravenes this provision may be held liable.

Significance of Section 26

Financial Transparency

Section 26 emphasizes the need for registered societies to maintain clear and accurate financial records. This promotes transparency and ensures that the society’s financial activities are open to scrutiny.

Accountability and Compliance

By requiring the keeping of books of account, the section enforces financial accountability among registered societies. It sets a standard for compliance with sound financial practices.

Legal Consequences for Non-Compliance

The provision of penalties in subsection (2) underscores the legal consequences that a registered society may face if it fails to maintain the required books of account. Legal measures serve as a deterrent against financial irregularities.


Section 26 plays a crucial role in fostering financial integrity within registered societies. By mandating the maintenance of books of account and imposing penalties for non-compliance, the section contributes to a regulatory framework that prioritizes transparency, accountability, and adherence to sound financial practices.

This ensures that the financial activities of registered societies align with legal standards, promoting trust and confidence among members and stakeholders.