Tax, VAT, customs and trade alerts

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In this alert:

Legal Alert - The Public Benefits Organizations Regulations, 2026

In this Legal Alert, we examine the Public Benefits Organizations Regulations, 2026 (the "PBO Regulations"), which operationalise the Public Benefits Organizations Act, 2013 by establishing the procedural framework for the registration, governance, reporting, transition and dissolution of public benefit organizations (“PBOs”) in Kenya. The PBO Regulations mark a significant shift from the previous Non-Governmental Organization (“NGO”) regulatory regime and introduce a more structured compliance framework for organisations carrying out public benefit activities. 

Key changes include the broadened registration threshold for entities operating as PBOs; formalised registration procedures such as mandatory name search and reservation, prescribed application forms and fees; a bestowment mechanism allowing entities incorporated under other laws to obtain PBO status without re-incorporation; differentiated treatment of international PBOs and exempt international organisations; clearer governance requirements, including local directorship thresholds for certain entities; and enhanced reporting and record-keeping obligations, including annual reporting, asset inventories and financial statements prepared in accordance with the Institute of Certified Public Accountants of Kenya (ICPAK) standards. The PBO Regulations also permit income-generating activities where proceeds are applied solely to registered public benefit purposes, and introduce detailed safeguards governing voluntary dissolution and deregistration. 

Existing NGOs, entities seeking bestowment of PBO status, international organisations and other affected bodies are advised to review their registration position, governance arrangements and internal compliance systems, and to prepare for transition under the new framework. This alert provides a practical overview of the PBO Regulations and highlights key considerations for organisations operating in Kenya’s public benefit sector.