2025-02-19
Kenya's Not-For-Profit Sector 2025 Outlook
The NGO Co-ordination Act was replaced by the Public Benefit Organisations (PBO) Act, 2013 on 14 May 2024 following the declaration by the Cabinet Secretary for Interior and Administration as the date the Act came into operation. All organisations registered under the repealed NGO Co-ordination Act were automatically transited to the new PBO Act and given a one-year transition period which ends on 13 May 2025 to seek re-registration under the PBO Act.
The PBO regulations which will govern the transition of NGOs to PBOs and applications for organizations that are to be bestowed the public status are yet to be released for public participation prior to implementation. We expect that this will be released in 2025. The impact of this is that all organisations under the repealed NGO Act will continue using the regulations provided under the repealed NGO Act. All new registrations are still being issued under the repealed NGO Act.
The key impact for the purpose of reporting under PBO Act in 2025 is that Form 14 will now be due for filing within 6 months instead of 3 months. On publication of regulations, all PBOs irrespective of the level of funding will be required to file their annual returns.
The NGO Act exempted organisations with funding below Shs 1 million. PBOs will also be required to prepare financial statements based on Generally Acceptable Accounting Practice (Principles) applicable to non-profit organisations.
The NGO Act exempted organisations with funding below Shs 1 million. PBOs will also be required to prepare financial statements based on Generally Acceptable Accounting Practice (Principles) applicable to non-profit organisations.
This publication gives a detailed breakdown of significant transitions, including the shift from NGOs to PBOs under the PBO Act, 2013, regulatory changes in trust registration, the adoption of international financial reporting standards for NPOs, evolving tax compliance requirements, and the increasing importance of ESG and sustainability for securing funding and ensuring long-term impact.