Implementation of PBO law fulfils Ruto's promise to CSO sector

The rare promise may have been buried in the thin print or eclipsed by the prominence the media gave to landmark commitments during the 2022 presidential campaigns.

It may well have been trounced by the noise that accompanied the election heckling as various candidates canvased for votes in one of Kenya’s most contested presidential competitions.

It could even have escaped the scrutiny of the majority of the hawk-eyed Civil Society Organizations (CSO) players, yet it was about the operationalization of the law that would be the most consequential to the multi-billion sector in days ahead.

Which is why President Ruto’s order on the immediate operationalization of the Public Benefit Organizations (PBO) Act, 2013 during a United Nations CSO Congress in Gigiri, Nairobi, in May last year was received with mixed reactions.

The applause may have engulfed the surprises but the convergence in disbelief around the implementation of a law that had gathered dust on the shelves for more than a decade was loud and evident.

The PBO Act bears the thumbprints of three Heads of State but only the third in that succession and the fifth since independence breathed life to this law that is currently revolutionizing the regulatory space under which all charitable organizations operate in the country.

Deputy President H.E Prof Kithure Kindiki, while serving then as the Cabinet Secretary for Interior and National Administration, had the honour of gazetting the commencement of the operationalization of the Act on the same day of the Presidential order – May 10, 2024.

He picked May 14, 2024 – four days after the Presidential pronouncement – as the commencement day of the Act that gives effect to Article 36 of the Constitution of Kenya on freedom of association and assembly.

For a whole eleven years, there was push and pull – punctuated by the legendary activism that define Kenya’s CSO sector activism – on the implementation of the PBO Act.

Concerns on security, tax concessions and possible burden load on Government as well as text inconsistencies taking centre stage.

Not even an avalanche of court orders could push the previous administration to move for an inch towards the implementation of the PBO Act.

Just as the Civil Society sector appeared to be on the verge of resigning to fate on the legislation considered to be one of the most progressive in the continent, Candidate William Ruto emerges from the unfamiliar horizon.

On his own motion, the Kenya Kwanza candidate became the only presidential contender to include the implementation of the PBO Act as his formation’s commitment in writing – a vow he signed publicly in broad daylight in the capital.

The Kenya Kwanza’s bottom-up blueprint was abundantly clear on the operationalisation of the charity law as a deliberate step towards improved governance in the country.

It was the only manifesto that carried the promise.

As ordered, the implementation of the PBO Act started on May 14, 2024.

There are those provisions that were operationalised immediately with ease.

Others had to await the PBO regulations currently being prepared in readiness for public participation this month to be implemented fully.

I am in the team appointed through the Ministry of Interior and National Administration to lead a process of harmonising two draft regulations – one previously developed by the PBO Regulatory Authority and the other the CSO sector – and build consensus on the product of the initiative.

Today, as Kenyans celebrate Madaraka Day, I can confirm that substantial progress has been made in developing the new regulations that will give “legs” the Act to “walk”.

Already, the PBO Act – which repealed the NGOs Co-ordination Act of 1990 – has not only consolidated Kenya’s position as a leader in registration and regulation of the charitable sector but has also raised the standards.

PBOs continue to reap the benefits that come with the implementation of the 2013 law, including reduced registration period from a maximum of 90 to 60 days, protection of assets of charities, transparent management of organisations and democratised self-regulation.

Where a PBO has met set registration requirements and has not been registered for one reason or the other, the Act dictates that it will be listed in the Register at the lapse of the two-month window.

PBOs that feel aggrieved over decisions made by the regulator can file an appeal with the disputes’ tribunal established by the judiciary and even escalate the matter to the courts if appropriate.

The PBO Act provides for registration of organisations that is simple, convenient, non-restrictive and affordable.

Charitable organisations registered under any other law now have the opportunity to be recognised and regulated, hence improved public trust, including enhanced donor support.

Besides, they can choose to be directly registered or be conferred with public benefit status as a form of recognition.

Still, those that do not fundraise or implement projects in the country may apply for a special permit as provided by the Act.

The PBO Act is also considered progressive in other respects. They include, improved access to information about the sector and the register of organisations, beneficiary protection and collaboration between the Government and the PBO sector.

To address the challenge of sustainability of PBO programmes, the Act allows charitable organisations to run income-generating activities.

The law obligates the regulator to build the capacity of the PBOs for effectiveness and efficiency in complementing Government development efforts.

It also promotes compliance with regard to the filing of annual reports by PBO, as it increases the time within which the returns must be handed in by three more months to six.

This is expected to reduce the pressure that normally comes with submission of the annual reports and enable organisations to file them alongside the audited financial statements at the same time.

Overall, I find the PBO Act to contain the ingredients of a good charity law and I am confident it will serve the sector for many years to come.

Dr Laxmana Kiptoo is the Director General/CEO, Public Benefit Organizations Regulatory Authority