On 16 May 2025, the Ministry of Interior and National Administration (the Ministry) published a notice in the Kenya Gazette indicating that the transition period under Regulation 5 (1) of the Fifth Schedule to the Public Benefit Organisations Act, 2013 (the PBO Act) was extended by one year, now expiring on 13 May 2026 (instead of the original 14 May 2025) (the Extension). The Extension provides ample time for existing non-governmental organisations (NGOs) and other organisations that wish to be registered as public benefit organisations (PBOs) more time to comply with the requirements of the PBO Act.
Before this development, the PBO Act, passed in 2013, had remained in limbo for over a decade until 14 May 2024, when it was operationalised through Legal Notice No. 78 of 2024. While that activation formally repealed the Non-governmental Organisations Co-ordination Act, 1990 (the NGO Act) and established the regulatory framework for PBOs, the detailed regulations required to give full effect to the PBO Act are yet to be enacted.
On 12 June 2024, the public benefit organisations regulatory authority (the Authority) published the draft PBO regulations 2025 (the Regulations) (accessible here) that are intended to give full effect to the PBO Act. The Authority vide a public notice in the Daily Nation (the Publication), also invited members of the public, stakeholders and interested parties to review and submit their written comments by 25 July 2025 at 17:00 (the Public Participation) via the email address ppregulations@pbora.go.ke. The Ministry and the Authority will also undertake physical public participation exercises at the dates and venues specified by the Authority on page 12 of the Publication. In Nairobi, the physical public participation exercise will be conducted at Ufungamano House on 18 July 2025 as per the Publication.
Purpose of the PBO Act
The PBO Act aims to streamline the administrative and regulatory regime for organisations that provide public benefits, commonly understood to be those that are non-partisan, non-profit, and engaged in activities that advance the public good.
Implications for NGOs registered under the NGO Co-ordination Act
NGOs that were validly registered under the now-repealed NGO Act were initially required to seek registration under the PBO Act by 14 May 2025. With this time limit extended to 13 May 2026, NGOs may continue operating with their existing status and registration under the NGO Act. Should an organisation fail to register as a PBO, after the publication of the regulations, within the extended deadline (or any further period that may be specified), the organisation will not be recognised as a PBO under the PBO Act and consequently, not capable of enjoying the benefits that would be applicable to PBOs under the PBO Act.
The benefits as provided under the PBO Act are mainly tax exemptions and indirect government support. These include relief from income tax, value added tax, customs duties, stamp duty, and court filing fees. PBOs will also benefit from tax incentives for donors and employment-related tax preferences. Beyond tax relief, PBOs may access government funding, receive preferential treatment in procurement processes, and benefit from increased access to public information and training programs that support their public benefit activities.
Regulations
The PBO Act empowers the Cabinet Secretary, in consultation with the Public Benefit Organizations Regulatory Authority, to develop regulations addressing classification of PBOs, registration requirements, fee schedules, and procedures for organisational changes, among other details. It is these regulations that will create the practical processes around the new status of NGOs and other organisations that wish to be registered as PBOs, including how to file applications for various changes, comply with reporting standards, and manage any additional administrative requirements. The Extension provides sufficient time for Public Participation in respect of the Regulations, revision of the Regulations and the enactment of the final version of the Regulations. The Extension also provides a buffer such that NGOs are not penalised during this interim period for non-compliance with the PBO Act.
Conclusion
The Extension and the publication of the Regulations underscores the government’s intention to implement the PBO Act fully and fairly. By granting additional time, existing NGOs may continue operating under their existing registration without being subjected to any penalties for non-compliance with the PBO Act as they take part in the Public Participation. Once the final version of the Regulations is published after the conclusion of the Public Participation, NGOs and other organisations that wish to be registered as PBOs will be required to complete the registration process as envisioned under the PBO Act and the Regulations.
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Read the original publication at Bowmans
