It was passed by the Parliament in 2012 and signed into law by the then President Mwai Kibakion January 14, 2013,but was not operationalised. While several attempts have been made to introduce new restrictive amendments prior to its official commencement.The PBO Act was done through an intensive and long consultative process. It reflects the joint commitment of different stakeholders to enabling environment for civil society sector. PBO Act represents a progressive piece of legislation which would comply with national and international standards and contribute to ensure a transparent, efficient and accountable self-regulating civil society sector.

On May 3, 2017, the Observatory published an international fact-finding mission report entitled “Kenya: 2017 elections: broken promises put human rights defenders at risk”, which provides a series of recommendations addressed to the authorities to improve the space for civil society engaged in the promotion and protection of human rights, among which the call for the immediate operationalization of the PBO Act 2013.

Following the adoption of the 2010 Kenyan Constitution, which clearly enshrines the right to freedom of association, on January 13, 2013 President Mwai Kibaki had signed into law the PBO Act, a progressive piece of legislation which aims at ensuring a transparent and efficient regulation of civil society in Kenya, setting out clear rules on their registration and creating a system of incentives in support of organizations conducting public benefit activities.

The Head of State revealed he executed the necessary legal instruments to give effect to the PBO Act, effectively transforming it into law. In the Kenya Kwanza Manifesto under Governance, is the strengthening Leadership Accountability and De-Personalizing Politics commit to-Operationalizing the Public Benefits Organizations Act and expanding space for government-NGO partnerships and collaborations.

The enactment of the Act heralds a new era for non-profit entities engaging in public benefit activities within Kenya, establishing a robust regulatory framework to govern their operations.

Benefits of the Public Benefits Organizations Act

i. Creating a more streamlined regulatory process for civil society organizations.

ii. Clarifying registration criteria, by establishing timelines for how long an application can be processed.

iii. This enactment will enhance representation of civil society organizations in the composition of the Public Organizations Benefit Authority that is set to replace the NGO Council when the act comes into force.

iv. The Act is expected to enhance partnerships between the government and civil society organizations.

v. The Act establishes a renewed legal framework for extension of tax concessions to not-for-profit organizations.

vi. Central to this framework is the creation of the Public Benefits Organisation Authority (PBOA), a regulatory body tasked with overseeing the registration, monitoring, and regulation of Public Benefits Organisations (PBOs).

By implementing PBO ACT, the William Ruto government will put an end to the public stigmatisation of human rights defenders and civil society organisations. It will publicly recognise the legitimate and crucial role they play as pillars of development, service delivery, democracy and watchdogs of the rule of law. Further by enforcing the High Court rulings of 2016 and 2017 will put an end to the current legal limbo concerning the regulations of NGOs and immediately implement the PBO Act of 2013, without any restrictive amendment that could undermine the principles enshrined in the Act as signed into law on January 14, 2013.   It will create the new necessary institutions, such as the PBO Authority and the National Federation of PBOs, and allocate them the required human and financial resources so they can fully implement the Act.

The Public Benefits Organization Authority (PBOA).

The Public Benefits Organization Authority is comprised of key stakeholders from government ministries responsible for PBOs, finance, foreign affairs, and civil society representatives.

The board of the PBO Authority will assume pivotal roles in guiding the sector's development.

Among its functions are;

~ Registering and de-registering PBOs

~ Advising the Government on their activities and role in national development

~ Maintaining the register

~ Ensuring compliance with statutory obligations.

~ The board has broad authority to refuse registration, and cancel or suspend a certificate of registration.

~ Additionally, the Act envisages the establishment of a National Federation of Public regulatory framework.

PBOs in Kenya will operate under multiple legal frameworks based on the nature of their registration. Some fall under the Companies Act having been registered as companies limited by guarantee. A good example of these are Foundations. On the other hand, CBO’s and Self Help Groups are registered under the Societies Act. Trusts are registered under the Trustees Act while the NGOs in Kenya are currently regulated by the NGO Act of 1990, as they also comply with the NGO Code of Conduct 1995, and various different Acts pertaining to taxation. The NGO act provides for the registration and regulation of the local and national NGOs in Kenya.  The NGOs Co-ordination Board of Kenya was established by the NGO Act of 1990 and was operationalised on 15 June 1992 with a mandate to streamline the registration and co-ordination of NGOs. CBOs are registered by the Department of Gender and Children Affairs under the Ministry of Gender and Youth.

Upon commencement, the PBO Act will repeal the Non-Governmental Organizations Coordination Act (“NGO Act”), and create a new legal, regulatory, and institutional framework for non-profit organizations doing public benefit work in Kenya, under a single law.

An organization may be registered as a PBO by the Public Benefit Organizations Regulatory Authority if its objective is the promotion of public benefit in any of the following areas listed in the Sixth Schedule of the PBO Act: legal aid; agriculture; children; culture; disability; energy; education; environment and conservation generally; gender; governance; poverty eradication; health; housing and settlement; human rights; HIV/AIDS; information; informal sector; old age; peace building; population and reproductive health; refugees; disaster prevention, preparedness and mitigation; relief; pastoralism and the marginalized communities; sports; water and sanitation; animal welfare; and youth.

The PBO Act permits an organization to register under any of a variety of legal forms, but only an organization registered as a “Public Benefit Organization” under the PBO Act would receive tax exemptions and other benefits derived from registration under the PBO Act. An organization registered under both the PBO Act and any other law , shall be deemed to be registered under the PBO Act and the registration under the other law will be invalid (PBO Act Section 6).