State of the Civil Society Sector- Introduction of the Public Benefit Organization Act
Kenya’s civil society has long been a source of national pride, playing a central role in the country’s Second Liberation and continuing to support community advancement. Recently, significant legal changes have been introduced that affect this sector.

The Public Benefits Organization Act, No. 18 of 2013, which was inactive for three regimes, finally took effect on May 14, 2024. Here’s what you need to know, especially if you are involved in the civil society sector in Kenya:

Immediate Legal Impact

The activation of this Act repeals the NGO Coordination Act No. 19 of 1990. Organizations registered under the repealed Act are not considered illegal, but they must transition to the new framework by May 13, 2025. During this transition period, all NGOs will be classified and operate as Public Benefits Organizations (PBOs) under the new Act.

Next Steps for NGOs

Registration
NGOs exempted from registration under the repealed Act must apply for registration under the new Act by August 15, 2024. Section 8 of the Public Benefit Organization Act mandates that any new registration will override previous registrations under any other Act of Parliament. This requirement has been contentious, with the public noting that companies did not need to re-register under the Companies Act of 2015.

Continuous Compliance Obligations
NGOs are required to continue fulfilling their statutory duties, including making necessary filings as stipulated by the Act. Detailed statutory features of a PBO will be discussed in a follow-up article.

Statutory Conditions for Registration

The Act outlines comprehensive requirements for the internal structure of a PBO, including:

• Filing the organization’s constitution or constitutive documents.
• Submitting the names and addresses of founders.
• Providing the PBO’s physical address and place of business.

The Constitution and Constitutive documents form a strong foundation for PBO governance. The Act also supports self-regulation through the Federation of Public Benefits Organization (FPBO) and state regulation via the PBO Regulatory Authority. Judicial reviews will be managed by the PBO Tribunal.

International NGOs

The Act recognizes International NGOs and facilitates the interoperability of civil society organizations across borders. However, it introduces the requirement for an authorized representative to maintain the organization’s compliance, keep records, and accept service on behalf of the organization.

The Public Benefit Organization Act provides a progressive way in the administration and governance of civil society and will provide greater regulation and reduced government involvement.

The Act recognizes International NGOs and facilitates the interoperability of civil society organizations across borders. However, it introduces the requirement for an authorized representative to maintain the organization’s compliance, keep records, and accept service on behalf of the organization.

Support and Guidance

We are available to assist organizations in navigating these changes and ensuring compliance. Reach out to us at info@scriberegistrars.com or 0720 021253 for guidance and support during this transition period.