Nairobi — The Government is demanding for compliance from Non-Governmental Organizations to file their annual returns and declare sources of funding as the country heightens its vigilance against illicit financial flows.
This follows a damning report that barely 30 percent of the 12,162 NGOs registered in the country filed their returns in the 2021/22 Financial Year.
Interior Principal Secretary Raymond Omollo has described as "unacceptable" the low levels of compliance with the existing legal and regulatory frameworks, adding that it is enough reason to infer that the culprits are involved in shady activities, including terrorist financing.
"You must embrace transparency in your funding sources as well as expenditure," he told the sector players Monday when he presided over the launch of the Annual NGO Sector Report 2021/2022 in Nairobi.
PS Omollo affirmed the government's commitment to create a conducive environment for the sector players to thrive, with plans underway to operationalize the much-awaited BPO Act.
He urged the organizations to reciprocate and honour their obligations as an affirmation of their commitment to the values that underpin the course of true service to humanity.
"You, as the torch bearers of change, must reciprocate the trust bestowed upon you by ensuring total compliance with our legal and regulatory frameworks. Those that have not yet registered must also formalize their status as the first critical step towards ensuring accountability, transparency, and legitimacy in their operations." He said.
According to the report, the NGO sector in Kenya spent a total of Sh 185.5 billion in the financial year 2021/2022.
Of these, Sh 118 billion was pumped into project implementation, Sh 49.7 billion for personnel emoluments, Sh 18.4 billion as administration costs and Sh 4.4 billion on tangible assets.
PS Omollo challenged the organizations to prioritize development projects in critical sectors and align their programmes with the government's agenda on job creation and inclusive socioeconomic empowerment.
"Access to affordable credit for low-income earners, informal traders, women and youth enterprises through the Hustler Fund and provision of safe, secure and affordable housing in informal settlements are some of the sectors in the Government's agenda that NGOs similarly need to plug in," he noted.
The report also indicates that a total of 9,794 organisations were active, representing 80 per cent of NGOs cumulatively registered by the Board.
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In addition, some 3,005 NGOs which filed their annual reports reported receiving KES 175.9 billion and spending KES 185.5 billion, employed 71,096 people.
PS Omollo encouraged them to leverage the wide network presented by National Government Administration Officers (NGAOs) to decentralize their operations to the grassroots for maximum impact on the communities they serve.
The launch of the report also coincides with the NGOs Week 2023, an annual event that brings together Civil Society Organisations (CSOs) and the public and private sectors to showcase their services and operations.
The Week encompasses exhibitions and webinars on topical issues about the multi-billion-shilling sector which complements Government development efforts.
