NAIROBI, Kenya, May 14 — 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
Organizations previously registered under the repealed NGO Coordination Act of 1990 will not need to apply for fresh registration.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.