Question 1

How does IFRS 9 3-stage impairment differ from SASRA statutory provisioning?

Accepted Answer

SASRA statutory rules apply fixed backward-looking provisioning rates based on days in arrears (Normal: 1%, Watch: 3%, Substandard: 20%, Doubtful: 50%, Loss: 100%). IFRS 9 requires forward-looking Expected Credit Loss calculations based on Point-in-Time Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), and macroeconomic scenario weights.

Question 2

What happens if SASRA statutory provisions exceed IFRS 9 ECL?

Accepted Answer

Under SASRA and CBK prudential guidelines, when statutory provisions exceed IFRS 9 balance sheet ECL, the difference must be appropriated from unappropriated retained earnings into a non-distributable Statutory Regulatory Reserve on the balance sheet.

Question 3

What triggers a loan reclassification from Stage 1 to Stage 2 under IFRS 9?

Accepted Answer

A loan migrates from Stage 1 to Stage 2 upon a Significant Increase in Credit Risk (SICR), such as 30+ days past due, significant debt-service degradation, or adverse member employment/sector shocks, requiring Lifetime ECL recognition instead of 12-month ECL.

Question 4

Are Ramon Gitau financial calculators compliant with 2026 Kenyan tax laws?

Accepted Answer

Yes. All financial calculators incorporate the latest 2026 statutory rates including PAYE tax bands, SHIF (2.75%), NSSF Tier I/II contributions, Affordable Housing Levy (1.5%), and SASRA regulatory limits.

Question 5

Is user data stored when using online financial tools?

Accepted Answer

No. All mathematical computations, PDF generation, and scenario simulations run 100% locally inside your browser using client-side JavaScript. No private data is logged or transmitted.

IFRS 9 Expected Credit Loss Modeler

IFRS 9 Expected Credit Loss (ECL) Modeler

Total Loan Portfolio

Total IFRS 9 ECL

Net Carrying Value

SASRA Statutory Delta

Portfolio Parameters

Exposure vs ECL Provision by Stage (M KES)
3-Stage Impairment

ECL Provision Distribution by Stage
KES 8.01M Total

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