State targets 'ghost' NGOs in new draft rules to boost accountability

PBORA Director-General Dr.Laxmana Kiptoo addressing during the ChildFund Kenya national dialogue to accelerate the localization agenda for sustainable development. With the Theme: "From Local Solutions to Global Impact: Advancing Localization for Sustainable Development,” at Radisson Blu Hotel in Nairobi on May 20, 2025. [Boniface Okendo, Standard]

In a bid to enhance transparency and accountability, the government is set to streamline the registration and operations of non-government organisations.

This follows the publication of the Draft Public Benefit Organisations Regulations, 2025, developed to operationalise the Public Benefit Organisations Act, 2013.

According to the Public Benefit Organisations Regulatory Authority (PBORA), the new regulations aim to weed out ghost organisations that exist only on paper but siphon donor funds without delivering any meaningful impact.

The law also seeks to establish a clear and consistent framework for the governance and oversight of the organisations.

PBORA Chief Executive Laxmana Kiptoo said this is part of the government’s intention to support—notrestrict—the sector’s positive impact.

“The intention is to strengthen the integrity of the sector by ensuring PBOs operate within clear, supportive and transparent rules,” he said.

“This includes alignment with global best practices on anti-money laundering and counter-terrorist financing.”

The new regulations are also meant to support organisations in fulfilling their mandates while ensuring that their operations remain transparent, well-regulated and aligned with both national priorities and international standards.

Similarly, they cover the full lifecycle of a PBO—from registration and governance to financial reporting and compliance and provide a framework for the coordination of forums and federations representing PBO interests.

During the launch of the regulations last week, Interior PS Raymond Omollo noted that he PBO sector continues to play a vital role in national development, service delivery and civic engagement.

According to the Annual Sector Report for the 2022-23 financial year, the sector received Sh196 billion in project support and employed 80,000 people during that period.

These figures underscore the importance of a strong regulatory environment that not only fosters growth but also protects the integrity of the sector.