The Public Benefit Organisations Regulatory Authority (PBORA) has cautioned the public against engaging Public Benefit Organisations (PBOs), formerly referred to as Non-Governmental Organisations (NGOs), without performing due diligence.
The Authority’s Head of Legal Services, Nicholas Lindon, is now urging the public to reach out to the Authority to ascertain the status of PBOs before engaging with them, to avoid getting scammed or duped.
Speaking in Nyeri County, Lindon noted that the Authority had received numerous reports from members of the public regarding rogue PBOs operating in the country. He observed that most of these cases could have been avoided had the victims conducted proper background checks.
“We are saying that due diligence cuts across the board. If someone is confronted with a situation they do not feel right about and one that involves large sums of money, it will not cost them to pick the phone and call the Authority to find out whether the organisation they want to engage with is rightly registered.
You will find that if a PBO has been deregistered, the information will be on the website but the person didn’t look at the website so they don’t know the PBO has been deregistered so they engage without doing due diligence,” he said.
“At the end of the day, when they come to complain, we find out that all sorts of things that could easily be avoided had they carried out due diligence. So we are requesting donors and the public alike to make sure they talk to the authorities before they engage with PBOs,” he added.
Lindon spoke during a public participation exercise on the proposed Public Benefit Regulation 2025. The Public Benefit Organisations Regulatory Authority—formerly the Non-Governmental Organisations Coordination Board—was established under Section 34 of the Public Benefit Organisations Act, 2013, and is mandated to register and regulate PBOs in the country.
The Public Benefit Organisations Act, 2013 came into force on May 14, 2024, with the aim of regulating NGOs and PBOs.
A Public Benefit Organisation is a charitable, membership or non-membership grouping of individuals or organisations that is autonomous, non-partisan, non-profit making, and engages in public benefit activities.
Lindon noted that the new Public Benefits Act had incorporated new provisions that will be key in restoring order in the PBO sector. Some of the key reforms introduced by the Act include the establishment of a monitoring mechanism that allows the Authority to engage constitutional agencies to conduct forensic or criminal investigations on suspicious organisations.
Other provisions introduced in the new Act include the creation of a tribunal within the Authority’s Secretariat to provide a mechanism for resolving disputes quickly, without going through the courts.
“Currently as things are, matters get to go to the courts, and as we all know, the court’s calendar is crowded. We are hoping that the tribunal will be able to deal with the cases that are in court and sort them out within record time and allow these PBOs to discharge their mandate as per the law,” he said.
On whether the 14,000 PBOs registered under the old Act will be deregistered following the enactment of the new law, Lindon said they are closely working with organisations to ensure they update their status to align with the new law.
“There are few things that have been provided for in the new law and PBOs will have to change. For example, certain provisions were not in the previous Act but in the current Act we have governance structures clearly indicated. So these PBOs will have to update their records to reflect the new status quo. They will also be required to change the title from NGO to PBO on certificates of registration,” he said.
While welcoming the proposed regulations, Victor Karanja, a member of Kenya na Youth group in Murang’a, requested inclusivity in the management and running of NGOs operating in the country.
He questioned how the drafters of the regulations failed to capture the needs of marginalised persons as part of the requirements for those intending to register a new PBO, terming the omission unfortunate.
“Given that over 70 per cent of Kenya’s population is under 35 years, why does the draft bill fail to include mandatory representation of youth, persons with disability, indigenous communities and other marginalised voices in its regulatory structure, yet it claims to be inclusive?” he posed.
On his part, Elijah Wangai, who runs the Movement for Bridging Equity and Unity, a CBO operating from Mukurwe-ini, faulted a requirement for PBOs to have a physical premises as unfair, especially for upcoming organisations. He also claimed the requirement for the President to appoint the Chair of the Board could rob it of independence and reduce it to an appendage of the Executive.
Apart from the Chair, other members who shall sit on the PBORA Board include the Interior Principal Secretary, their counterparts in Foreign Affairs and Treasury, the Attorney General, the Chairperson of the National Federation of PBOs, and the Chief Executive Officer who shall serve as an ex-officio member and secretary to the Board.
“The requirement for PBOs to have a physical address may be a challenge to many of us who operate virtually and with no physical offices. We also fear that the mere fact that the Chair of the Board is an appointee of the Executive may interfere with the independence of the decisions at that level and in the process impact negatively in the running of PBOs in the country. In addition, some of the PBOs operating at the local level do not have donors and steady sources of income and therefore asking such entities to submit annual financial returns may be an impediment to their operations,” he submitted.
Article 26 of the proposed regulations requires PBOs to prepare and submit annual returns to the Authority every six months. The returns must be submitted on or before March 31 of each calendar year.
Zacharia Kweyu, from Amnesty Circles of Conscience, urged the State to weed out rogue entities masquerading as PBOs and allow only registered ones to operate. Kweyu also called for the involvement of local CBOs during the formulation of key decisions regarding the running of PBOs in the country, saying that the majority of them operate in rural areas.
“It does not augur well when every decision regarding the running of Public Organisations is decided in Nairobi, including which entity to register or deregister. In addition, the State should be on the lookout for organisations whose sole aim is to solicit for funds for selfish gains under the disguise of offering community service.
Every registered organisation must prove that what it offers is for the good of the community and not for self-seeking interests,” he stressed.
The public participation sessions are scheduled to conclude on July 25.
