On May 14, 2024, Kenya enacted the Public Benefit Organizations Act, 2013 (PBO Act), replacing the Non-Governmental Organizations Coordination Act, 1990 (NGO Act). This legislation introduces a comprehensive framework for the registration and regulation of Public Benefit Organizations (PBOs) in Kenya. Organizations previously registered under the NGO Act are granted a one-year transition period, from May 14, 2024, to May 13, 2025, to comply with the new registration requirements.
Key Requirements for PBO Registration:
- Definition and Eligibility:
- A PBO is defined as a voluntary membership or non-membership grouping of individuals or organizations that is autonomous, non-partisan, non-profit making, organized and operated locally, nationally, or internationally, engages in public benefit activities, and is registered as such by the PBO Authority.
- Application Process:
- Submission of Documents: Applicants must submit the organization’s constitution, details of the founders, physical and postal addresses, information on public benefit activities, and the required fee.
- Review by the PBO Authority: The PBO Authority will review the application to ensure compliance with the Act’s provisions.
- Issuance of Certificate: Upon approval, the Authority will issue a certificate of registration, serving as conclusive proof that the PBO is authorized to operate throughout Kenya.
- International Organizations:
- International organizations intending to operate in Kenya must apply to the PBO Authority for a certificate to operate. They are required to have an authorized Kenyan agent who is a Kenyan citizen residing in Kenya. This agent is authorized to receive official summons, notices, and inquiries on behalf of the international organization.
- Benefits of Registration:
- Registered PBOs enjoy indirect government support, including exemptions from specified categories of taxes. The Act also provides a predictable and transparent framework for the registration and regulation of civil society entities, expediting the registration process and reducing administrative discretion.
Transition Period and Compliance:
Organizations previously registered under the NGO Act are automatically considered registered as PBOs under the new Act. However, they must formalize their PBO status by applying for registration within one year from the commencement date, i.e., by May 13, 2025. Failure to comply within this period will result in the cessation of their PBO status.
Conclusion:
The operationalization of the PBO Act marks a significant shift in the regulatory framework governing public benefit organizations in Kenya. Organizations are encouraged to familiarize themselves with the new requirements and ensure timely compliance to continue their operations seamlessly. The Act aims to enhance accountability, streamline operations, and provide a transparent framework for the effective functioning of PBOs in the country.
For more information, you can contact us via email at agnes@nkm-advocates.co.ke or reach out to us on WhatsApp at 0707329013. We’re here to help!
