The Kenyan government is implementing the Public Benefits Organisations (PBO) Act, 2013 to enhance financial transparency and accountability among NGOs, now referred to as Public Benefit Organisations. The Act requires PBOs to maintain updated financial records, including audited accounts and annual progress reports.

Speaking during a public participation forum in Garissa, PBORA CEO Dr. Laxmana Kiptoo said, “The Kenyan government wants to know and ascertain all the organisations previously known as Non-Governmental Organisations, which are now referred to as Public Benefit Organisations, operating across the country.” He added, “We need to know exactly where these entities operate from and who their beneficiaries are… They collect money from the donors, but in essence, these funds end up in other people’s pockets.”

Dr. Kiptoo also highlighted concerns about some NGOs funding illegal activities, noting, “There are NGOs that are suspected to be funding illegal activities and that has put us in problems as a country… non-profit organisations have been touted to be a conduit for money laundering and terrorism funding, which has put us as a country in an awkward position.”

Garissa Civil Society Network Chairperson Khalif Nunde welcomed the move, stating, “Regrettably we have briefcase NGOs that were only siphoning donor funds and failing to deliver on their mission… The new Act must be strict to weed out organisations that have no presence on the ground but are siphoning donors’ funds while operating with little oversight.”

All NGOs must comply with the new regulations by May 13, 2026, following a one-year extension. Currently, only 4,000 out of 14,000 registered NGOs are compliant. The sector received KSh196 billion in project support and employed 80,000 people in 2024.