Gov’t unveils draft regulations for civil society operations

The Draft Public Benefit Organizations (PBO) Regulations were Thursday launched in Nairobi, marking a critical step in implementing the Public Benefit Organizations Act.

The PBO Act, which came into force on May 14, 2024, seeks to strengthen the legal framework guiding the operations of civil society organizations across the country.

Internal Security and National Administration Principal Secretary Dr. Raymond Omollo officiated the launch and said the Act affirms the government’s commitment to fulfilling its pledges and aligns with Article 36 of the Constitution, which guarantees the right to freedom of association.

The draft regulations, a product of broad-based stakeholder consultations, brings us a step closer to operationalizing the PBO Act, strengthening the legal and institutional framework that govern Public Benefit Organizations in Kenya.

“We reaffirm our 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,” he said.

The Act provides mechanisms for asset protection, outlines clear procedures for registration, and establishes a dispute resolution process through a Tribunal under the Judiciary.

It also aims to enhance transparency, increase citizen participation, and promote greater accountability in the sector.

During the event, Omollo called on all stakeholders to actively engage in the development of the regulations, noting that their participation will be essential in ensuring the regulations achieve the objectives set out in the Act.

He emphasized the importance of Public Benefit Organizations in national development, highlighting their contributions to service delivery, employment creation, and resource mobilization.

The government reiterated its full support toward finalizing the regulations and implementing the Act, and encouraged collaboration between civil society, the Government, and development partners to create a regulatory environment that allows Public Benefit Organizations to operate effectively.

Data from the Annual Sector Report shows that the PBO sector received Sh196 billion in project support and employed approximately 80,000 individuals.

The authority Director General Laxmana Kiptoo said they have embarked on a crucial phase in the implementation of the Public Benefit Organizations (PBO) Act, 2013.

Kiptoo added the regulatory framework will significantly impact Kenya’s nonprofit and development landscape.

Kiptoo said the operationalization 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.

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 with one year from the Commencement Date.

Their PBO status will cease to exist if  they do not apply for registration under the PBO Act within 30 days after a specific notice has been issued to them by the PBO Authority.

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 authorized 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 the behalf of the IPBO.

INGOs 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 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.