The government has assured that the new Public Benefit Organisations regulations are geared towards enhancing transparency and accountability in operations of non-governmental organisations as opposed to being punitive.
According to Public Benefit Organisations Regulatory Authority’s (PBORA) Legal Affairs Manager Liondo Otieno, the regulations that were published on June 5, 2025 to operationalise the Public Benefit Organisations Act, 2013, are expected to introduce tighter regulations that will help eliminate “briefcase NGOs” and strengthen oversight of the non-profit sector in the country.
The legal affairs manager explained that once the regulations are endorsed, they would empower the Authority to monitor and verify all NGOs, now known as Public Benefit Organisations (PBOs) operating across the country and help restore public trust by ensuring only genuine, impactful organisations are allowed to operate.
He reaffirmed government’s support for a vibrant, well-regulated civil society that complements government efforts in delivering services, promoting social justice, and deepening democratic governance across the country.
Otieno who was speaking during a public participation forum on the Draft Public Benefit Organisations regulations at the Rift Valley Regional Commissioner’s plenary hall in Nakuru, said one of the key goals of the government was to weed out briefcase NGOs that claim to work in certain regions, collect donor funds, but ultimately channel the money into individual pockets.
The Public Benefit Organisations Regulatory Authority (PBORA), a state agency, is established under Section 34 of the current Public Benefit Organisations (PBO) Act, 2013, to take over the roles previously discharged by the NGO Coordination Board.
The manager explained that unlike the centralised and rigid NGO Coordination Board, the new PBO Regulatory Authority operates as an independent oversight body tasked with registration, monitoring compliance, interpreting policy and advising the government on matters affecting the sector.
He elaborated that the authority is also empowered to investigate and deregister organisations involved in fraud or in breach of the act’s provisions.
The Public Benefit Organisations (PBO) Act, enacted in 2013, officially came into effect on May 14, 2024, after an 11-year delay in implementation.
This was after President William Ruto officially announced the commencement of the PBO Act during the UN Civil Society Conference held in Nairobi, ending a decade-long delay that stemmed from legal and administrative disputes.
A 2014 government task force had recommended amendments to the Act, but court rulings later stated reforms could only proceed after operationalisation, halting progress for years.
Now fully in motion, the PBO Act is poised to reshape the governance, accountability and sustainability standards of Kenya’s nonprofit sector.
Two draft sets of regulations, one from the government and another from the civil society, are being harmonised through a countrywide public participation exercise aimed at operationalising the PBO Act.
The final report will then be validated and submitted to Parliament in August, followed by review by the Office of the Attorney General and subsequent gazettement by the Interior Cabinet Secretary.
Otieno said the commencement of the PBO Act was a significant milestone, marking the replacement of the now-defunct NGO Coordination Act.
He added that the PBORA was entering a crucial phase in implementing the PBO Act, 2013, and that its framework would significantly impact the nonprofit and development landscape in Kenya.
The official urged all stakeholders to actively participate in the development of the regulations, emphasising that their input was vital to ensuring the effectiveness of the new legal framework.
“Feedback on the draft regulations will determine how the law functions in practice and therefore Public input is essential to ensure the regulations achieve the PBO Act’s, 2013 purpose,” added Otieno.
He underscored the importance of public benefit organisations saying that they played a key role in national development through job creation, service delivery and resource mobilisation.
According to the Annual Sector Report, the PBO sector received Sh196 billion in project support and employed approximately 80,000 individuals.
The legal affairs manager reiterated the government’s full support for the finalisation of the regulations and the full implementation of the Act, calling for continued collaboration among civil society, the government, and development partners to establish a regulatory environment that enables PBOs to operate effectively.
According to the PBO Act 2013, a Public Benefit Organisation (PBO) refers to a voluntary grouping of individuals or organisations that operate on a non-profit, non-partisan basis to deliver charitable services to the public.
These organisations can function at national or international levels and must be registered under the PBO Act, which replaced the outmoded Non-Governmental Organisations Coordination Act of 1990.
Otieno explained that the new law establishes a comprehensive, predictable, and transparent framework for the registration and regulation of civil society organisations operating in Kenya.
He further explained that the new law streamlines the registration process, minimises administrative discretion, curbs arbitrary decisions, and offers tax and other benefits to registered PBOs.
The manager noted that an inclusive, participatory, and open civil society was essential for Kenya, as it would enhance democratic principles and support transparent governance.
Otieno assured that the PBO Act aims to strengthen the legal framework for civil society organisations and reflects the government’s commitment to its constitutional obligations, particularly Article 36, which guarantees the right to freedom of association.
He indicated that the draft regulations were a product of broad-based stakeholder consultations, which he said were bringing Kenya a step closer to operationalizing the PBO Act and strengthening the legal and institutional framework that governs public benefit organisations in the country.
The Act includes provisions for asset protection, clear registration procedures, and the establishment of a dispute resolution mechanism through a tribunal under the Judiciary. It also seeks to promote transparency, citizen participation, and greater accountability in the sector.
Under the new law, all NGOs are considered registered under the PBO Act but must apply for re-registration within one year from the Commencement Date. Failure to do so within 30 days after receiving notice from the Authority will result in loss of PBO status.
NGOs previously exempted under the NGO Act are now required to register within three months from commencement, while international PBOs (IPBOs) must appoint a local authorised Kenyan agent to receive official communications.
The Act introduces a range of benefits for compliant organisations, including exemptions from certain taxes, access to government funding and preferential treatment in procurement processes. It also allows income-generating activities, provided the profits are reinvested into the organisation’s mission.
The new law will also standardize reporting requirements. All PBOs, regardless of income or size, must now file both general and audited financial reports within six months after the end of the financial year, a departure from the previous regime, which only required audited reports from entities receiving more than Sh1 million in funding.
The law’s impact is expected to be far-reaching, not only for governance but also for the country’s economy. In the 2022/23 financial year, the PBO sector employed 79,350 individuals, 41,128 salaried employees (including 36,037 Kenyans and 5,091 expatriates) and 38,222 volunteers, 95 percent of whom were Kenyan.
According to the Kenya National Bureau of Statistics, nonprofit institutions contributed between 0.8 and one percent of Kenya’s Gross Domestic Product between 2018 and 2022.
By Esther Mwangi and Lucy Njeri
