All non-governmental organizations (NGOs) in Kenya now have one year to follow new rules under the Public Benefits Organizations (PBO) Act. This law requires all NGOs to update how they operate so that they match the government’s updated legal demands.
Every private organization must now clearly reveal where they get their money from, how they are structured inside, and how they are registered.Interior Cabinet Secretary Kipchumba Murkomen made the announcement through a gazette notice on Friday, May 16. In the notice, he said that all organizations must be fully compliant with the law by May 13, 2026.
This extension gives NGOs one more year, starting from May 14, 2025, to complete the process of aligning themselves with the law. Murkomen stated that this extension was done under Regulation 5 (1) of the Fifth Schedule to the PBO Act.The law aims to make NGO operations more transparent and organized.
It also allows the government to officially recognize these organizations, which will then be entitled to several benefits. Some of these benefits include tax breaks, chances to take part in government tenders, and access to government training sessions and team-building opportunities.
This is expected to help many NGOs grow and become more stable. It also allows them to engage in income-generating activities, as long as the money earned is used to support their core mission.
This is a big shift from the old system under the NGOs Coordination Act of 1990, which did not allow NGOs to enjoy such privileges.This latest move comes shortly after a concerning update by the PBO Director General Laxmana Kiptoo.
He revealed that only 4,000 out of 14,000 registered NGOs in Kenya have followed the new law. Kiptoo expressed shock over these numbers and urged all organizations to take action. He said that the law was created for the benefit of the entire sector, and that it is important for all players to support it.
He addressed this issue on Thursday, May 15, when he met with various stakeholders. He also mentioned that the new regulations will be subjected to public participation beginning next month.The government now expects the remaining 10,000 NGOs to take this final chance seriously and work towards compliance.