Enactment of the Public Benefits Organization Act (2013)
Enactment of the Public Benefits Organization Act (2013)
On May 9, 2024, the Cabinet Secretary for Interior and National Administration published Legal Notice 78 of 2024, officially operationalizing the Public Benefits Organization Act, 2013 (PBO Act), which came into effect on May 14, 2024. This marks a significant milestone for the regulation of non-profit organizations in Kenya, ensuring a structured and transparent framework for their operations.
Key Highlights of the PBO Act:
- Transition from NGOs to PBOs: All registered NGOs are now deemed to be Public Benefit Organizations (PBOs) and must re-register under the PBO Act by May 13, 2025.
- Change in Regulator: The Public Benefit Organizations Regulatory Authority (PBO Authority) replaces the NGO Coordination Board.
- New Requirements for International PBOs: International PBOs (IPBOs) must appoint a Kenyan citizen as a legal representative.
- Exemption for Certain INGOs: Some international NGOs may be exempted from registration if they do not directly implement programs in Kenya.
- Benefits for PBOs:
- Streamlined registration processes
- Tax exemptions (income tax, stamp duty, VAT, and customs duties)
- Incentives for donations
- Access to government support and capacity-building programs
- PBO Disputes Tribunal: A new tribunal will handle disputes within the sector.
- Establishment of the National Federation of Public Benefits Organizations: This body will oversee self-regulation within the sector.