Introduction

On 16th May 2025, the Kenyan government published a notice in the gazette indicating that the transition period under Regulation 5(1) of the Fifth Schedule to the Public Benefit Organizations (PBO) Act had been extended for a period of 1 year until 13th May 2026.

History of the Act and its Implementation

To appreciate the import of this extension it is necessary to understand the history of the PBO Act. The Act was passed and assented to on 14th January 2013. However, the Act remained dormant for over a decade until 14th May 2024 when it was operationalized through Legal Notice No.78 of 2024. In the intervening period, the predecessor statute – The Non-Governmental Organizations Co-ordination Act, 1990 – remained in force with the NGO Coordination Board as the sector regulator.

From the time the PBO Act was operationalized on 14th May 2024, Section 7 of the Act made it mandatory for all existing NGOs and INGOs previously registered under the now repealed NGO Coordination Act to register afresh under the provisions of the PBO Act.

This fresh registration is to be effected by the PBO Regulatory Authority. Nevertheless, and to allow existing organizations to continue to operate while Regulations are being developed, Regulation 5(1) of the Fifth Schedule to the Act provides that

Every non-governmental organization which on the appointed day [14th May 2024] is registered under the Non-Governmental Organizations Act (now repealed) shall, be deemed to be registered as a public benefit organization under this Act have up to one (1) year from the appointed day to seek the formal registration as a public benefit organization under this Act.

Therefore, existing NGOs including INGOs were required to formally apply for registration under the PBO Act within 1 year ending 14th May 2025. This requirement is enforceable under Regulation 5(2) of the Fifth Schedule which provides that an existing organization that fails to seek formal registration within the 1-year period and after receiving notice from the Authority to effect such registration, will cease to have PBO status.

Despite the foregoing, so far it has not been possible for registration as provided for in the PBO Act to be implemented. This is because the PBO Regulations which are expected to contain additional provisions on the modalities of registration -such as prescription of the forms, fees and other requirements for registration- have not yet been passed. Section 69 (4) of the Act requires that before the Regulations are passed, a draft should be published and circulated for comment by relevant stakeholders.

Conclusion 

Given the complexities and nuances of the new dispensation under the PBO Act, the process of preparing the draft Regulations that will give full effect to the Act is still underway. It is in light of this that the 1-year extension (until 13th May 2026) has been issued by the government. It is anticipated that the PBO Regulations will be passed in that time.

In the meantime, existing NGOs/INGOs can continue to operate under their existing registration issued under the NGO Coordination Act.

We will continue to monitor the situation and provide additional updates as they become available. 

For more information on this please contact us on nairobi@mmkadv.co.ke.