Kenya: Explainer - What the 2026 PBO Regulations Mean for NGOs and Civil Society in Kenya

14 May 2026
Capital FM (Nairobi)
By Editorial Desk

Nairobi — Kenya's nonprofit and civil society sector is entering a new legal era following the rollout of the Public Benefit Organizations (PBO) Regulations, 2026, which operationalize the Public Benefit Organizations Act, 2013.

The regulations, approved by Parliament in April 2026, officially replace the old NGO Coordination Regulations of 1992 and establish a new framework for the registration, oversight and management of nonprofit organizations operating in Kenya.

Here is what the new regulations mean for NGOs, charities, foundations and international organizations.

1. NGOs will automatically transition into PBOs

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Organizations previously registered under the repealed NGO Coordination Act of 1990 will not need to apply for fresh registration.

Instead, they will automatically transition into the new Public Benefit Organization framework under Regulation 43.

However, organizations must still submit updated documentation to the Public Benefit Organizations Regulatory Authority (PBORA), including:

  • Updated constitutions
  • Governance details
  • Minutes approving the transition
  • Existing NGO registration certificates

PBORA will then issue new certificates reflecting their updated PBO status.

2. New governance rules for organizations

The regulations introduce stricter governance requirements for organizations seeking registration.

Every organization must:

  • Have at least five directors
  • Ensure that not more than three directors are related
  • Ensure at least one-third of directors are Kenyan residents

Organizations are also required to disclose:

  • KRA PINs
  • National IDs or passport details
  • Physical addresses
  • Phone numbers and email contacts of officials

3. Wider oversight and reporting obligations

Under the regulations, PBOs must maintain updated records including:

  • Audited accounts
  • Annual financial statements
  • Asset inventories
  • Annual activity reports

Organizations must also notify PBORA whenever they make "material changes," including:

  • Changes in directors or officials
  • Constitutional amendments
  • New banking arrangements
  • Address changes
  • Changes in authorized agents for international organizations

Some changes must be reported within 30 days, while others have a 60-day reporting window.

4. Annual reporting is now mandatory

Every registered PBO must submit annual reports to the Authority using prescribed forms.

Failure to comply with reporting obligations could expose organizations to investigations, sanctions or deregistration.

The Authority has also been granted powers to conduct inquiries into:

  • Financial irregularities
  • Non-compliance with the law
  • Governance disputes
  • Suspicious activities

5. Tougher deregistration and compliance measures

PBORA can deregister organizations if they:

  • Fail to comply with the law
  • Remain inactive for three years
  • Engage in money laundering or economic crimes
  • Violate Kenyan laws

Before deregistration, organizations must be notified and given an opportunity to respond or correct violations.

The regulations also require organizations to maintain proper records of assets and ensure all resources are used strictly for public benefit purposes.

6. PBOs can engage in business activities

One of the notable changes is that PBOs will now be allowed to engage in lawful economic activities to support their charitable work.

However, organizations must:

  • Obtain necessary licenses
  • Follow sound financial practices
  • Ensure profits are only used to support public benefit activities

7. New fees introduced

The regulations introduce a new fee structure for registration and compliance services.

Some of the charges include:

  • Sh25,000 for registration as a national PBO
  • Sh45,000 for registration as an international PBO
  • Sh2,000 annual reporting fee
  • Sh4,000 fee for changing officials or constitutions
  • Sh15,000 fee for changing an organization's name

8. Recognition of self-regulation forums

The regulations formally recognize self-regulation forums for nonprofit organizations.

A forum must consist of at least 10 registered PBOs operating within related sectors or regions.

Federations of forums can also be established if at least five forums come together.

9. Increased transparency requirements

Organizations are now expected to make their activities accessible to stakeholders upon request, except for proprietary or personal information.

The regulations also emphasize compliance with Kenya's data protection laws.

10. Why the regulations matter

The 2026 Regulations are the first comprehensive implementation framework for the PBO Act, which was passed in 2013 but remained largely dormant for years.

The government says the framework is intended to:

  • Improve accountability
  • Strengthen governance
  • Enhance transparency in donor-funded organizations
  • Standardize nonprofit operations
  • Reduce risks related to terrorism financing and financial crimes

For Kenya's nonprofit sector, the regulations mark one of the most significant legal and administrative changes in more than three decades.

Read the original article on Capital FM.

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