- The PBO Act provides for more partnership with the government, including accessing state resources to support initiatives for the benefit of the public.
- It further incentives groups to engage in community support work by lowering the cost of doing business including through tax benefits and relief.
Image: PCS
President William Ruto surprised more than 2,000 delegates at the UN Civil Society Conference by announcing commencement of the PBO Act 2013.
It had been in limbo for more than years when Ruto made his at the declaration on May 9-10 event.
The announcement was significant not only for recognising the role of the UN body but also it most critically affirmed the critical role that public benefit organisations play in society.
It should be recalled that civil society organisations were present in San Francisco at the founding of the United Nations and have been an integral part of the United Nations ecosystem from the outset. The United Nations Civil Society Conference was the premier event on the civil society calendar at the United Nations.
The Conference offered civil society organizations an opportunity to give them visibility and discuss issues of global concern before a high-level audience of senior UN System officials, prominent international civil society organisations, youth changemakers, academia, public opinion makers, and international media to discuss issues of global concern. This international forum provided preliminary space for discussions ahead of the Summit of the Future in September 2024 at the UN Headquarters in New York.
The enactment of the Public Benefit Organisations (PBO) Act in Kenya marks a significant milestone in the regulatory landscape governing non-governmental organisations and civil society organisations (CSOs). It is designed to streamline operations, enhance accountability, and foster a conducive environment for public benefit organisations.
Among the objectives of the PBO Act is to make the registration process for NGOs and CSOs objective and time-bound. Prior to the Act, organisations faced a cumbersome and often opaque registration process, which could deter the establishment of new entities. To be registered or not was like a lottery riddled with subjectiveness and arbitrariness of the agency.
The PBO Act introduces a more transparent and efficient registration mechanism by the PBO Authority, which is tasked with overseeing the registration, regulation, and facilitation of PBO activities. It provides a single point of contact for organisations seeking legal recognition. Above all it provides for a appeal mechanisms for those who feel aggrieved by decisions of the authority.
For many organisations, this will mean a reduction in bureaucratic red tape and a clearer path to compliance. The standardised registration process will ensure that all entities meet minimum standards of governance and accountability, thereby enhancing the sector's credibility as a whole.
The PBO acts requires self regulation of the sector with transparency and accountability being the cornerstones of their operations. PBOs will now be required to adhere to stricter reporting and disclosure requirements. This includes the submission of annual reports detailing financial statements, sources of funding, and the impact of their activities. By mandating these disclosures, the PBO Act aims to put the public in the drivers’seat to make inquiries and be informed of the benefits of the PBOs. The openness on financial and implementation programmes allow for citizens to be more engaged with the work of various PBO entities.
We believe that enhanced accountability measures will instil greater confidence among donors, both domestic and international organisations for enhanced partnership, as monitoring of compliance to peer set standards are expected to bolster their capacity to deliver on their missions.
The PBO Act places a strong emphasis on robust governance structures within PBOs (NGOs and CSOs). It requires organisations to establish clear governance frameworks, including the composition and responsibilities of their boards of directors. Non-Kenya PBOs would be allowed to be registered in Kenya but must have locals participate at governance level This move is designed to promote ethical leadership and decision-making, ensuring that organisations operate in a manner that is consistent with their stated objectives and the public interest.
Globally there is wide acceptance that governance practices are pertinent for more effective and efficient management of organisations. It is envisaged PBOs having clearly defined roles and apportionment of responsibilities, for board members and executives to effectively navigate challenges and leverage opportunities for increased impact.
The creation of the PBO Authority shall also facilitate greater collaboration and networking among PBOs. By providing a centralised platform for information sharing and coordination the PBO Authority is expected to galvanise organisations to engage in collective action and advocacy more effectively. This should be particularly beneficial in addressing cross-cutting issues such as human rights, environmental conservation, and public health, where joint efforts can yield more significant results.
Additionally, the PBO Act encourages the formation of networks and coalitions, allowing smaller organisations to pool resources and expertise. This collaborative approach has strengthened the sector’s voice in policy dialogues and advocacy efforts, ensuring that the concerns and interests of civil society are adequately represented in the national discourse.
The PBO Act provides for more partnership with the government, including accessing state resources to support initiatives for the benefit of the public. It further incentives groups to engage in community support work by lowering the cost of doing business including through tax benefits and relief.
Despite its many benefits, the PBO Act has some limitations that need to be addressed. Some organisations have raised concerns about the increased administrative burden associated with compliance, particularly for smaller NGOs and CSOs with limited resources. The stringent reporting requirements can be daunting, necessitating capacity-building efforts to ensure all organisations are able to meet these standards.
Furthermore, there have been coordinated engagement between the state and other non state stakeholders regarding the implementation of the Act. The leadership of the PBO Authority and leading PBO actors must work together to develop a plan of action to transition from the old to the demands of the new legal framework. This further calls for political will to fully embrace the new dispensation.
When fully implemented, the PBO Act represents a significant step forward in paving the way for a more vibrant and effective Public Benefit sector in Kenya. As organisations continue to adapt to the new regulatory environment, the potential for greater collaboration and impact in advancing social and developmental goals is immense.
Executive director, Defenders Coalition