Public Benefit Organisations Authority Director General Dr. Laxmana Kiptoo
Only 4,000 Out Of 14,000 NGOs In Kenya Are Compliant, With Officials Saying It Is Important That They Comply With The Law That Is Being Operationalised For The Benefit Of All
By MKT Reporter
Non-Governmental Organizations have been given a lifeline.
The organization that brings in the country billions of shillings have another one year to align their operations with the current laws, that were passed more than a decade ago but enacted last year.
This week, the Public Benefit Organisations Authority Director General Dr. Laxmana Kiptoo told NGOs to take advantage of the current period to be compliant.
He said they have embarked on a crucial phase in the implementation of the Public Benefit Organisations (PBO) Act, 2013.
The DG disclosed that only 4,000 out of 14,000 registered Non-Governmental organisations are compliant.
Dr. Kiptoo told the entities to take advantage of the current period to be compliant.
“It is important that they comply with the law that is being operationalised for the benefit of all,” he said.
He added that the agencies know what to do and urged them not to wait for the last-minute rush for compliance.
“It is shocking that out of the 14,000 NGOs we have registered, only 4,000 are compliant,” he said.
Kiptoo spoke at a media engagement on the status of the new law whose enforcement has been delayed for more than a decade.
Dr Kiptoo added that the regulatory framework will significantly impact Kenya’s nonprofit and development landscape.
He said the operationalisation of the PBO Act on May 14, 2024, marked a historic milestone, replacing the defunct NGOS Coordination Act of 1990.
“The new Act ushers in a new regulatory framework that supports a dynamic civil society ecosystem while reinforcing mechanisms for accountability, sustainability, and transparency,” he said.
The PBO sector is vast, diverse, and impactful, he added.
The authority is focused on the finalisation of the draft regulations that will bring the PBO Act to life.
Between June and July 2025, the board will be holding county-level public participation forums across all 47 counties, seeking direct input from stakeholders.
Among others, the law says all registered NGOs are deemed to be registered under the PBO Act but will be required to ‘re-register’ under the PBO Act within one year from the Commencement Date.
A few months ago, Deputy President Prof Kithure Kindiki, then Cabinet Secretary for Interior gazetted the enactment of the law but the government realised it was practically impossible to implement it, hence the need to extend the compliance deadline from May 14 this year to May 13 next year.
NGOs that were exempt from registration under the NGO Act are now required to apply for registration under the PBO Act within three months from the commencement date.
International PBOs (IPBOs) will be required to submit particulars of a local authorised agent (a Kenyan citizen who is resident in Kenya) who will be the IPBO’s duly authorised legal representative for purposes of receiving official summonses, notices and inquiries on behalf of the IPBO.
NGOs may be exempted from registration under the PBO Act and instead granted a permit to operate in Kenya if they do not intend to directly implement activities or programmes in Kenya or operate from Kenya to implement activities or programmes in another country.
PBOs will enjoy a wide range of benefits, including indirect government support in the form of exemption from specified categories of taxes, direct government financing and preferential treatment in public procurement procedures and bidding for contracts.
There will be an established PBO Disputes Tribunal that will determine appeals from members of the public or PBOs against decisions of the PBO Authority and complaints arising out of a breach of the PBO Act.
Further, there will be the National Federation of Public Benefits Organisations, which is an umbrella organisation of all registered PBOs and self-regulation forums.
Its functions include promoting self-regulation, coordinating and monitoring the self-regulation forums registered under the PBO Act.
Stakeholders in the sector gave different opinion from the government’s explanation.
A group that has been agitating for the Act’s implementation said the government was shifting the enforcement period as a way of running away from addressing crucial issues addressed therein.
They said some of them include issues to compensation of former country liberators, who have for decades waited for their dues.
They further argued that the government was behind the scene planning to have its way over various proposals made on the act.
There has been push and pull over some issues in the act, with the government and other stakeholders taking different sides.
However, there have been some gains, among them appointment of Charles Mutuma to lead in formation of rural administration officers across the country.
A senior government official President s said to be planning to visit Meru county, where Mutuma hails from for the celebration of his elevation.
But the hiccup remains failure for the next financial year to allocate funds for implementation of some of the Act’s provisions.
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