A major shake-up is underway in Kenya’s nonprofit sector, as the Public Benefit Organisations (PBO) Authority revealed that only 4,000 out of 14,000 registered NGOs are currently compliant with new regulations under the PBO Act, 2013.
Dr. Laxmana Kiptoo, the Authority’s director general, expressed concern over the low compliance rate, urging NGOs to act promptly.
“It is shocking that only a fraction of our NGOs are compliant. They know what is required — we’re urging them to avoid last-minute panic,” Kiptoo said during a media briefing.
The operationalisation of the PBO Act on May 14, 2024, officially replaced the outdated NGOs Coordination Act of 1990.
The new law introduces a modern regulatory framework aimed at promoting transparency, sustainability, and accountability within Kenya’s vast civil society space.
All NGOs previously registered under the old regime are now required to re-register under the PBO Act within one year of commencement.
Failure to apply within 30 days of a formal notice will result in loss of registration. International organisations must also appoint a local legal representative.
PBOs that comply will benefit from tax exemptions, access to government funding, and preferential treatment in public procurement.
Additionally, the sector will have new oversight structures, including a Disputes Tribunal and a National Federation to promote self-regulation.
County-level public participation forums will be held in June and July 2025 to involve stakeholders in finalising implementation regulations.
