The transition period under Regulation 5 (1) of the Fifth Schedule to the Public Benefit Organisations Act, 2013 (PBO Act) was recently extended by one year, now expiring on 13 May 2026 (instead of the original 14 May 2025) (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) to comply with the requirements of the PBO Act.

The Ministry of Interior and National Administration (the Ministry) published a notice in the Kenya Gazette announcing the Extension on 16 May 2025. 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 While that activation formally repealed the Non-governmental Organisations Co-ordination Act, 1990 (NGO Act) and established the regulatory framework for PBOs, the detailed regulations required to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 (Regulations) that are intended to give full effect to the PBO Act. The Authority also invited members of the public, stakeholders and interested parties to review and submit their written comments by 25 July 2025 at 17:00 (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. In Nairobi, the physical public participation exercise will be conducted at Ufungamano House on 18 July 2025 . 

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 

NGOs that were validly registered under the now-repealed NGO Act were initially required to seek registration under the PBO Act by 14 May 2025.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 and 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 underscore 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.

Written by Rainbow Field, Director and Head of M&A, and Njoroge Kangethe and Dennis Okumu, Associates, Bowmans Kenya