Garissa: The Government seeks to streamline Non-Governmental Organisations operating in the country through the Public Benefits Act, which emphasises the need for financial transparency and accountability. The PBO Act, 2013 came into place in May last year, following an order by President William Ruto, replacing the previous Non-Governmental Organisations Co-ordination Act, 1990.
According to Kenya News Agency, the new Act requires Public Benefit Organisations to maintain up-to-date records of all their financial activities, including audited accounts, detailed inventories of their assets, and annual progress reports of their activities and programmes. Under this legislation, NGOs will now be referred to as PBOs.
Speaking during a public participation forum for the new PBO regulations in Garissa, Public Benefit Organisations Regulatory Authority (PBORA) Chief Executive Officer, Dr. Laxmana Kiptoo, emphasized the government’s commitment to operationalising the Act to eliminate organisations that merely solicit funds without implementing actionable programmes.
Dr. Kiptoo stated that the Kenyan government aims to identify and verify all entities previously known as NGOs, now PBOs, operating across the country. ‘We need to know exactly where these entities operate from and who their beneficiaries are. This law will ensure we eliminate all ‘briefcase’ organisations that claim to operate in certain areas but ultimately divert funds into private pockets,’ he explained.
The CEO expressed concern over non-governmental organisations suspected of funding illegal activities, such as terrorism and money laundering, which has placed the country under international scrutiny. He noted that the Act aims to close gaps and ensure only legitimate organisations operate in Kenya.
Kenya is currently on the Financial Action Task Force (FATF) grey list due to deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks. Dr. Kiptoo highlighted that NGOs suspected of illegal activities have contributed to this situation, putting the country in a difficult position.
Khalif Nunde, Chairperson for the Garissa Civil Society Network, supported the new regulations, stating that the framework will bring much-needed order among NGOs. He expressed concerns about ‘briefcase’ NGOs that misuse donor funds and fail to fulfill their missions, advocating for strict regulations to address these issues.
Nunde emphasized the need for NGOs serving communities to be accountable through mandatory reporting, audits, and public access to information on their activities. ‘The new Act must be strict to weed out organisations with no presence on the ground but are siphoning donors’ funds while operating with little oversight,’ he said.
All NGOs in Kenya have until May 13, 2026, to restructure their internal systems, including governance, financial reporting, and registration requirements, in line with the PBO Act. This follows the government’s decision to extend the compliance deadline by a year to facilitate a smooth transition into the new legal regime.
According to PBORA, only 4,000 out of the 14,000 NGOs registered in Kenya are currently compliant. As per the Annual Sector Report, the sector received Sh196 billion in project support and employed approximately 80,000 persons in 2024.
