Advocacy groups advocate for the execution of the PBO Act
Kenya's Public Benefits Organisations Act Nears Operationalisation
The long-awaited operationalisation of the Public Benefits Organisations (PBO) Act, 2013 in Kenya is moving forward, with the submission of the final draft of the regulations for approval. This development marks a significant step in aligning regulatory clarity with the evolving complexity of global humanitarian and development operations.
The PBO Act, which came into force on May 14, 2024, aims to regulate non-governmental organisations (NGOs) and public benefit organisations in the country. However, its implementation has been delayed due to legal and political roadblocks. The Act establishes the Public Benefit Organisations Regulatory Authority (PBORA), formerly the NGO Coordination Board, to register and regulate PBOs.
One of the key provisions of the PBO Act is the introduction of a tribunal within the Authority’s Secretariat to swiftly resolve disputes involving PBOs, reducing court congestion and allowing organisations to focus on their mandates. The Act also enforces monitoring mechanisms, enabling constitutional agencies to conduct forensic or criminal investigations on suspicious organisations to ensure accountability and transparency.
The PBO Act encourages income-generating activities for sustainability, allowing NGOs to engage in social enterprises. However, these income-generating activities can only be related to charitable activities, and the proceeds must be used for the organisations' sustainability. The Act also streamlines the registration process, shortening registration time from 90 to 60 days, and extending the deadline for filing annual returns from three to six months.
The PBO Act differs from the NGO Coordination Act in several ways. For instance, the PBO Act establishes a tribunal for swift dispute resolution within the regulatory authority, whereas the NGO Coordination Act had no dedicated tribunal, and disputes were handled in courts. The PBO Act also provides for provisions for forensic/criminal investigations on suspicious organisations, whereas the NGO Coordination Act had basic regulatory oversight.
The High Court of Kenya's ruling in April 2025 declared several key provisions of the PBO Act unconstitutional, including the mandatory re-registration of NGOs previously registered under the repealed NGO Coordination Act. The court ruled this requirement violated constitutional rights such as freedom of association and principles of legitimate expectation and administrative fairness.
After consolidating feedback, PBORA will hold a validation forum, followed by submission to Parliament and the Attorney General’s Office for approval and gazettement by the Cabinet Secretary. The public participation window for the draft regulations ends on July 25. The new regulations unlock progressive benefits for both local and international PBOs, including a specialised PBO Dispute Tribunal, tax exemptions, and a new mandate for training and capacity building.
The PBO Act's operationalisation is welcomed by stakeholders, with Keith Doyle, Country Director of Action Against Hunger and chairman of the INGO Forum, stating that the session marked a significant step in aligning regulatory clarity with the evolving complexity of global humanitarian and development operations. Hassan Abdille, Country Director of Islamic Relief Kenya, expressed the need for the Act to be operationalised.
The ongoing reviews and proposals to improve operational accountability and public trust in NGOs/PBOs reflect active engagement between the government, civil society, and other stakeholders. The introduction of a specialised PBO Dispute Tribunal and the more progressive and collaborative regulatory framework are expected to ease the resolution of disputes and promote accountability within the sector.
The operationalisation of the PBO Act in Kenya's politics will lead to the creation of a specialised PBO Dispute Tribunal for swift resolution of disputes involving PBOs, a welcomed improvement in the health of the NGO/PBO sector and its accountability. This development in finance and business will also bring tax exemptions and a new mandate for training and capacity building for both local and international PBOs. The new regulations for the PBO Act, when approved, are expected to appear in the epaper as a significant milestone towards ensuring compliance with laws and increased trust from the public.
