Navigating Public Benefit Organization (PBO) Requirements in Kenya
Last year, MGK Consulting published a detailed breakdown of the Public Benefit Organization (PBO) Act, 2013, highlighting its impact on NGOs operating in Kenya and the long-awaited operationalization of the Act. We are delighted to share an update on the same, crucial for understanding NGO registration in Kenya.
1. PBO Act Transition Deadline Extended to May 2026
In a Gazette Notice No. 6255 dated 16th May 2025, the Ministry of Interior formally extended the transition period by one year. NGOs and other entities offering public benefit services now have until 13th May 2026 to comply with the registration and governance requirements of the PBO Act.
This extension provides organizations with more time to:
- Align their operations with the Act’s provisions.
- Transition from company or society structures into PBO-compliant entities.
- Regularize their status with the PBO Authority.
2. High Court Ruling: Existing NGOs Are Already Deemed PBOs
In a major legal development, the High Court of Kenya ruled in June 2025 that existing NGOs registered under the now-repealed NGO Coordination Act are automatically recognized as PBOs. This landmark ruling on NGO legal standing in Kenya:
- Declared fresh mandatory registration under the PBO Act unconstitutional.
- Affirmed the legal continuity of NGOs.
- Struck down provisions requiring compulsory donor/member data disclosures and forced membership in the PBO Federation.
This judgment provides much-needed clarity and legal protection for NGOs, especially those concerned about loss of status or being forced into duplicative compliance processes.
3. Government Response to the PBO Act Ruling
As of now, the Ministry has not issued a formal response or policy clarification following the court ruling. However, a stay of execution on parts of the ruling has reportedly been granted, pending appeal. This means the legal framework remains in a state of transition, and NGOs should remain vigilant regarding the NGO regulatory framework in Kenya.
4. What Should NGOs Do Now for PBO Compliance in Kenya?
Despite the favorable ruling and the extended deadline:
- NGOs should proactively review their governance structures, constitutions, and reporting systems in line with the PBO Act.
- Organizations not yet in the PBO register should engage the PBO Authority for compliance guidance.
- Legal advice is advisable where status or registration is unclear.
5. Final Word on PBO Act Updates
This update builds on MGK Consulting’s commitment to walk with NGOs through regulatory changes. We will continue to monitor developments and support you in compliance, governance, and strategic transitions.
For specific guidance or support, reach out to our team at enquiries@mgkconsult.co.ke.
Disclaimer
This article is for general informational purposes only and does not constitute legal or regulatory advice. For tailored guidance, please consult with legal counsel or contact MGK Consulting directly.