INTRODUCTION
The Public Benefits Organization Act,2013 came into operation on 9/05/2024 vide a gazette notice number 78. This act replaces the Non-Governmental Organizations Coordination Act,1990.
Therefore all non-governmental organizations registered under the repealed Non-Governmental Organizations Coordination Act,1990 have to comply and be registered as Public Benefit Organizations (PBOs) within one year.
The Public Benefits Organization Act,2013 is comprehensive detailing the process of registration of public benefit organizations.
Taking note of some notable provisions as discussed below:-
REQUIREMENTS FOR REGISTRATION
If a group of people of the same interest intend to register a Public Benefit Organization(PBO),these are the requirements:-
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A copy of the constitution or other relevant document of the public benefit organization.
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Names and addresses of the founders of the public benefit organization.
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The public benefit purposes for which the public benefit organization is organized and operated and all of the principal activities that the public benefit organization shall engage.
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Postal and physical address of the principal place business.
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Prescribed fees.
In cases of International Non-governmental organizations that wish to register as PBOs they need to submit the following:
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An application form.
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Proof that it is a legal entity in another country.
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Organization’s address in Kenya.
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A written statement from a representative of the organization’s headquarters with authority stating the purpose of the international NGO and the activities it wishes to undertake in Kenya.
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One third of the directors should be Kenyan and resident in Kenya.
Within 60 days after approval by the Public Benefits Regulatory Authority your organization is registered as a PBO and one is issued with a Certificate of Registration.
ESTABLISHMENT OF THE PUBLIC BENEFIT ORGANIZATIONS DISPUTES TRIBUNAL
The Public Benefit Organizations Disputes of the Tribunal will now be established consisting of members appointed by the Chief Justice and approved by the National Assembly.
The functions of the tribunal include:-
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Hear and determine complaints arising out of any breach of the provisions of the PBO Act.
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Hear and determine any matter or appeal made to it pursuant to the provisions of PBO Act.
BENEFITS OF REGISTRATION
- Tax exemptions from government on:-
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Income tax on income received from membership subscriptions and any donations or grants
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Income tax on income acquired from the active conduct of income producing activities if the income is wholly used to support the public benefit purposes for which the organization was established
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Tax on interest and dividends on investments and gains earned on assets or the sale of assets
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Stamp duty
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Court fees.
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Preferential treatment under value added tax (VAT),and customs duties in relation to imported goods or services that are used to further their public benefit purposes.
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Incentives for donations by legal and natural persons.
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Employment tax preferences.
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Special tax incentives for donations to form endowments, prudent investment policies.
2. Provision of direct government financing for public benefit organizations that partner with the government, via budget subsidies, grants for specific purposes, and contracts to perform certain work.
3. Preferential treatment in public procurement procedures and bidding for contracts.
4. Provision of information to enable public benefit organizations to contribute effectively to the policy processes.
5. Access to training courses that are relevant to public benefit organizations and offered by government institutions.
DESCRIPTIVE AREAS IN WHICH A PBO CAN BE REGISTERED
Some of the areas include:-
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Legal aid.
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Agriculture.
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Children.
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Culture.
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Disability.
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Energy.
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Education.
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Environment and conservation.
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Gender.
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Governance.
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Poverty eradication.
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Health.
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Housing and settlement.
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Human rights.
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HIV/AIDS.
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Information.
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Informal sector.
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Old age.
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Peace building.
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Population and reproductive health.
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Refugees.
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Disaster prevention, preparedness and mitigation.
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Relief.
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Pastoralism and the marginalized communities.
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Sports.
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Water and sanitation.
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Animal welfare.
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Youth.
CONCLUSION
The Public Benefits Organization Act,2013 is progressive and it has expanded the space of registration, compliance and dispute resolution of organizations both nationally and internationally that wish to be recognized as PBOs in Kenya.
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