Hurdle in President Uhuru Kenyatta's plan to control NGO cash

President Uhuru Kenyatta.

The Opposition has promised to shoot down proposed amendments to the law that will increase oversight by the Jubilee administration over nongovernmental organisations (NGOs) and force them to reveal their source of funds.

On Mashujaa Day, President Uhuru Kenyatta warned that some civil society groups may be linked to terror and other criminal activities, including radicalisation of the youth, and said his government would crack the whip on NGOs.

But yesterday the Coalition for Reform and Democracy (CORD) described the proposed Bill as draconian, retrogressive and revenge on civil society over the alleged role that some NGOs played in “recruiting” and “coaching” International Criminal Court witnesses in the cases facing President Kenyatta and his deputy William Ruto and former journalist Joshua Sang at The Hague-based court.

CORD said the Bill would hamper the work of humanitarian agencies that support education, health and offer relief services in many parts of the country by starving them of much needed cash.

First-term Gatundu South MP Moses Kuria, a fierce critic of CORD and its co-principals Raila Odinga, Moses Wetang'ula and Kalonzo Musyoka, said he would bring a Bill to the House to amend the Public Benefits Organisations Act 2013 to cap foreign funding of NGOs at 15 per cent, and have them audited by the Auditor General, among other changes.

"It is a Motion borne of bad faith. It is therefore selfish and self serving of the Jubilee administration. The world over, you cannot silence civil society. The Motion is therefore against national interest. The world is watching Kenya and God is certainly watching too. For a lot of these NGOs are faith based," said former vice president Kalonzo.

Read mischief

NGOs would also be forced to publish their annual audited accounts in at least two local daily newspapers with national circulation.

But CORD reads mischief in the move, claiming it is an attempt by the Jubilee government to silence its critics by introducing draconian laws.

President Kenyatta declared on Mashujaa Day his government would demand transparency of resource mobilisation from outfits he said are funded by foreigners to destabilise the country.

Kuria has the backing of Jubilee MPs and the Bill is likely to be prioritised for debate as the Government dominates the House Business Committee that schedules National Assembly business for debate.

"This is to create transparency and accountability in the NGOs sector. We want all NGOs to be locally funded and if receiving foreign funds it must be 15 per cent. Those who receive more than 15 per cent should apply for a licence as a foreign agency," Kuria said.

According to the MP, only about 9,000 organisations are under a properly structured regulatory system that includes regular filing of returns and audited accounts and a clear review of outcomes of implemented projects. The NGO Co-ordination Board under the Ministry of Devolution and Planning estimates that about 350,000 other organisations are carrying out activities in the country without any or proper regulation.

The Bill would be the third attempt to pass a law to control NGOs after two earlier attempts failed. In December last year, in spite of enjoying the tyranny of numbers, Jubilee lost a vote in the National Assembly when 83 legislators voted against the proposed law that was backed by 73.

And three months ago, the Government withdrew the Statute Law Miscellaneous (Amendments) Bill 2014, which among others, contained provisions similar to the ones now in the pipeline.

"To this day, there are those abroad that seek to advance their economic and geopolitical goals to our disadvantage. They fund and nurture various outfits whose actions and vision seem set to create cleavages between Kenyans, and leave us despondent with their messages of pervasive failure. These actors have positioned themselves as the gatekeepers and interpreters of Kenya in various capitals. If they were to succeed, they would so completely rob us of faith in each other that we would put our destiny in the hands of unelected, unaccountable institutions that answer to elsewhere," President Kenyatta said on Mashujaa Day.

Just like State organs, the President demanded that civil society groups be held accountable on how they obtain and utilise their resources.

"As a start, my Government will insist on transparency of resource mobilisation and utilisation in and outside the public sector," he added.

Yesterday, Francis Nyenze, Leader of the Minority in the National Assembly, said CORD would mobile its troops to reject the Bill, saying that even within Jubilee, some MPs are not comfortable with the legislation.

"You can't cap foreign funding of NGOs when the Government cannot do everything for Kenyans. There are areas in this country where citizens only know NGOs and not Government," Nyenze said.

Super rich

On accountability, Nyenze wondered why the State was keen on monitoring finances that do not come from public coffers, arguing that NGOs have their own internal audit and control mechanisms.

"NGOs are self-regulating and have their own control systems. There are members even from Jubilee, especially from marginalised areas, who stand with us and will oppose this law," he added.

But Naomi Shaban, the Deputy Leader of the Majority in the National Assembly, insisted that civil society groups must be ready to open themselves up to scrutiny even as they demand accountability on the part of State officers.

"Why do they demand accountability from the Government but reject audit? What is it that they do and they don't want us to see? NGOs should be more transparent and audited," she said.

Ms Shaban said the uncontrolled and unmonitored resources may be funding activities that seek to destabilise the country and contribute to insecurity.

"This is not specifically related to the ICC, but there are issues such as terrorism funding that must be monitored. So much money comes to this country and it is part of the problem facing the country such as insecurity," said the Taveta MP.

She said the law should also ensure funds mobilised by NGOs are used for the right purpose.

"Which CEO of an NGO is not super rich? Some of these individuals mobilise resources which do not reach their targets and that is the corruption we are talking about," she said.

Nominated MP Amina Abdalla (TNA) said apart from funding, the structure in some NGOs is wrong.

"You find highly qualified Kenyans holding junior positions in some organisations and their salaries are taxed, yet unqualified foreigners hold senior positions and their pay is not subject to taxation," she said.

But some Jubilee MPs appear to be uncomfortable.

"That was discussed last year and abandoned as it was impractical to implement. There are better ways of regulating NGOs," said Justice and Legal Affairs Committee Chairman Sam Chepkonga.