public benefit organization act 2013

7/28/2019 Public Benefit Organization Act 2013

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2013 The Public Benefit Organizations No. 18421

THE PUBLIC BENEFIT ORGANIZATIONS ACT, 2013No. 18 of 2013

Date of Assent: 14th January, 2013

Commencement Date: By Notice

ARRANGEMENT OF SECTIONS

Section

PART IPRELIMINARY

1Short title and commencement.2Interpretation.

3Objects and purposes of the Act.

4Governments responsibility to public benefit organizations.

5Meaning of public benefit organization.

PART IIREGISTRATION OF PUBLIC BENEFIT

ORGANIZATIONS

6Registration.

7Bestowing of public benefit organization status.

8Requirements for registration.

9Consideration for registration.

10Certificate of registration.

11International organizations.

12Presumption of registration.

13Effect of registration.

14 Service of official notices, letters, summons or legal process.

15 Register of public benefit organizations.

16Refusal of registration.

17Review by the Authority or appeal to the Tribunal.

18Procedure for suspension or cancellation.

19Suspension or cancellation of certificate.

PART III SELF REGULATION, ADMINISTRATIVE AND

REPORTING OBLIGATIONS

20Freedom of association.


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No. 18 The Public Benefit Organizations 2013422

21Establishment of the Federation,etc.22Appointment to statutory bodies.

23Organizations may join self-regulation.

24Self-regulation forums to develop and maintain codes of conduct.

25Organizational integrity and internal self-regulation.

26Voluntary service on governing body.

27Ethical principles and aspirations.

28Promotion of self-regulation.

29Fiscal transparency.

30Accounts and reports.

31Annual report.

32Duty to provide information.

33Protection from personal liability.

PART IV ESTABLISHMENT, POWERS AND FUNCTIONS OF

THE AUTHORITY

34Establishment of the Authority.

35Composition of the Board of the Authority.

36Qualifications of members of the Board.

37Term of office.

38Oath of office.

39Vacancy.

40Removal from office.

41Filling of vacancy.

42Functions of the Authority.

43Powers of the Board.

44Conduct of business and affairs of the Board.45Director.

46Staff of the Authority.

47Delegation by the Board.

48Protection from personal liability.

49Common seal.

PART VTHE PUBLIC BENEFIT ORGANIZATIONS TRIBUNAL

50Establishment of the Tribunal.


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51Jurisdiction of the Tribunal.52Powers of the Tribunal.

53Disobedience of summons to give evidence, etc.

54Enforcement of orders for damages and costs.

55Rules of the Tribunal.

PART VI FINANCIAL PROVISIONS

56Funds of the Authority.

57Financial year.

58Annual estimates.

59Accounts and audit.

60Investment of funds.

PART VII MISCELLANEOUS PROVISIONS

61Voluntary deregistration, dissolution or winding-up.

62Safety of assets on deregistration.

63General power to institute inquiries.

64Offences and penalty.

65Income and economic activity

66Public policy and political activities

67Involvement by Government.

68Entry Permits

69Regulations.

70Repeal of No. 19 of 1990.

71Transition.

FIRST SCHEDULEPRINCIPLES FOR EFFECTIVECOLLABORATION BETWEEN THE GOVERNMENT AND

PUBLIC BENEFIT ORGANIZATIONS

SECOND SCHEDULEBENEFITS OF REGISTRATION

THIRD SCHEDULEPROCEDURE FOR NOMINATINGMEMBERS OF THE BOARD OF THE AUTHORITY

FOURTH SCHEDULE PROVISIONS AS TO THE CONDUCTOF BUSINESS AND AFFAIRS OF THE BOARD OF THE

AUTHORITY


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FIFTH SCHEDULE TRANSITIONAL PROVISIONS

SIXTH SCHEDULE DESCRIPTION OF AREAS FOR WHICHAN ORGANIZATION MAY BE REGISTERED


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THE PUBLIC BENEFIT ORGANIZATIONS ACT, 20132

AN ACT of Parliament to provide for the establishment andoperation of public benefit organisations; to provide for theirregistration; to establish an administrative and regulatoryframework within which public benefit organisations canconduct their affairs and for connected purposes

PREAMBLE

Recognizing the important role that public benefit organizations play inserving the public good, supporting development, social cohesion andtolerance within society; promoting democracy, respect for the rule of law,

and providing accountability mechanisms that can contribute to improvedgovernance;

Conscious that government, business or public benefit organisations ontheir own, do not have the capability to meet all the challenges that societyfaces;

Cognizant that the public benefit organizations are increasingly involvedin complementing the county and national government in all spheres of

public service delivery and of the primary role of Government of Kenya asthe duty bearer;

Perceptive that the realization of Kenyas development goals depend onthe contribution of not only the public and private sectors, but public

benefit organizations as well;

Recognizing that public benefit organizations, comprises a majoreconomic sector that employs almost half as many people as the publicsector;

Mindful that effective and efficient self-regulation is the basic foundationfor an effective working civil society sector and keen to ensure that public

benefit organizations maintain high standards of governance, transparencyand accountability;

Observant that the efforts to establish an enabling environment for publicbenefit organizations have been on-going and the current legislativeframework is in need of revision as it does not provide an adequateregulatory and institutional framework for public benefit organizations;

Cognizant that laws permitting public benefit organizations to exist andoperate freely are indispensable to the full and meaningful implementationof the freedoms of association, expression, and peaceful assembly in the


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Constitution, as well as increased development effectiveness through

better service delivery, and empowerment of Kenyans;

BE ITENACTEDby the Parliament of Kenya, as follows

PART I PRELIMINARY

Short title and

commencement.

1. This Act may be cited as the Public BenefitsOrganizations Act, 2013 and shall come into operation onsuch date as the Cabinet Secretary may, by notice in theGazette, appoint.

Interpretation. 2. (1) In this Act, unless the context otherwiserequires

Authority means the Public Benefit OrganizationsRegulatory Authority established under section 34;

authorized agent means a legal representative, who isa Kenyan citizen, authorized to receive official summonses,notices and inquiries on behalf of an international non-governmental organization;

Board means the Board of the Authorityestablished under section 35;

Cabinet Secretary means the Cabinet Secretary for

the time being responsible for matters relating to planningand national development;

Federation means the National Federation of PublicBenefit Organizations established under section 21;

international non-governmental organization means anon-governmental organization with its original registration

being in a country other than Kenya and operating in Kenyaunder a certificate of registration issued under section 10 ofthis Act;

public benefit activity means an activity that

supports or promotes public benefit by enhancing orpromoting the economic, environmental, social or culturaldevelopment or protecting the environment or lobbying oradvocating on issues of general public interest or the interestor well-being of the general public or a category ofindividuals or organizations;

register means the register kept by the Authoritypursuant to section 15; and

Tribunal means the Public Benefit OrganizationsDisputes Tribunal established under section 50.


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Objects and

purposes of the

Act.

3. The objects and purposes of this Act are to

(a) encourage and support public benefitorganisations in their contribution tomeeting the diverse needs of the

people of Kenya by

(i) creating a conduciveenvironment for the growth ofthe public benefitorganizations sector and forthe operations of the registered

public benefit organizations;

(ii) establishing an administrativeand regulatory frameworkwithin which public benefitorganisations can conducttheir affairs;

(iii) encouraging public benefitorganisations to maintain highstandards of governance,transparency andaccountability and to improvethose standards;

(iv) creating an environmentwithin which the public mayhave access to informationconcerning registered public

benefit organisations; and

(v) promoting a spirit of co-operation and sharedresponsibility withingovernment and amongdonors and other interested

persons in their dealings withpublic benefit organisations;

(b) give meaningful protection to theinternationally recognized freedomsof expression, association, and

peaceful assembly;

(c) promote the development of self-regulation among public benefitorganizations;

(d) promote compliance by public benefit


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organisations with their legal

obligations to exercise effectivecontrol and management over theadministration of their activities andfunding;

(e) facilitate a constructive and principledcollaboration between public benefitorganisations, the Government,

business, donors and other actors inorder to advance public interest;

(f) provide registration procedures,which are transparent, and which willfacilitate establishment of public

benefit organizations whilesafeguarding freedom of association;

(g) facilitate mechanisms for governmentcollaboration with public benefitorganizations, including funding of

public benefit organizations activitiesand involvement of public benefitorganizations in the implementationof government projects;

(h) facilitate the establishment andgrowth of public benefit organizationsin order to generally strengthen civilsociety, promote social welfare andimprove the conditions and quality oflife for the people of Kenya.

Governments

responsibility to

public benefit

organizations.

4.(1) Consistent with its obligation to respect thefreedoms of association and assembly, it is the duty of theGovernment to provide an enabling environment for public

benefit organizations tobe established and to operate.

(2) Every State organ shall determine and co-ordinate the implementation of its policies and measures in amanner designed to promote, support and provide anenabling environment for public benefit organizations to

perform their functions.

(3) The Government and all public benefitorganizations shall comply with the principles for effectivecollaboration set out in the First Schedule.

Meaning of

public benefit

5.(1) In this Act, public benefit organization meansa voluntary membership or non-membership grouping of


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organization. individuals or organizations, which is autonomous, non-

partisan, non-profit making and which is-

(a)organized and operated locally, nationallyor internationally;

(b)engages in public benefit activities in anyof the areas set out in the Sixth Schedule;and

(c) is registered as such by the Authority.

No. 14 of 2007.

No. 10 of 2007.

Cap. 108.

Cap. 469.

No. 14 of 2008.

No. 19 of 2006.

(2) For greater certainty, a public benefit organizationdoes not include-

(a)a trade union within the meaning of theLabour Relations Act, 2007;

(b)a public body established by or underany written law;

(c)a political party within the meaning ofthe Political Parties Act, 2007;

(d)a religious organization which isprimarily devoted to religious teachingor worship;

(e)a society within the meaning of theSocieties Act;

(f) a co-operative society within themeaning of the Co-operative SocietiesAct;

(g)a Sacco society within the meaning ofthe Sacco Societies Act;

(h)a micro-finance institution within themeaning of the Micro-FinanceInstitutions Act;

(i) a community based organization whoseobjective include the direct benefit ofits members.

PART IIREGISTRATION OF PUBLIC BENEFITORGANIZATIONS

Registration. 6. (1) A public benefit organization shall be registeredunder this Act for it to enjoy the benefits that accrue underthis Act.

(2) No organization that is registered under any other


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law in Kenya shall be registered under this Act while its

registration under that other law subsists.

(3) Without prejudice to subsection (1), registration ofan organization under this Act supersedes any priorregistration of that organization under any other law inKenya.

(4) Where an organization is registered under this Actand under any other law, that organization shall be deemedregistered under this Act and that other registration shall bedeemed invalid.

(5) Organizations shall be deemed to be similar under

this section if the name, objects and the officials, takentogether, are similar whether wholly or partially.

Bestowing of

public benefit

organization

status.

7. No organization shall purport to be a public benefitorganization unless that organization is-

(a) registered under this Act;(b) where registered under any other written law

in Kenya or not registered under any otherwritten law in Kenya, the Authority has

bestowed on that organization the status of apublic benefit organization.

Requirements

for registration.

8.(1) An application for registration under this Actshall be made to the Authority.

(2) An application for registration shall be accompaniedby

(a) a copy of the constitution or otherconstitutive document of the public

benefit organization;

(b) names and addresses of the foundersof the public benefit organization;

(c) the public benefit purposes for whichthe public benefit organization isorganized and operated and all of the

principal activities that the publicbenefit organization shall engage in;

(d) the postal and physical address of theprincipal place of doing business ofthe public benefit organization;


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(e) the prescribed fee; and(f) such other particulars or information

as may be required by the Authorityin order to assist the Authority todetermine whether or not theorganization meets the requirementsfor registration under this Act.

(3) An international non-governmental organizationmay register as a public benefit organization by filing thefollowing documentation

(a) an application form;(b) proof that it is a legal entity in another

country;

(c) the organizations address in Kenya;and

(d) a written statement from arepresentative of the organizationsheadquarters with authority to providesuch statement stating

(i) the purposes of theinternational non-governmental organization;

(ii) a general description of theactivities that the internationalnon-governmentalorganization is planning tocarry out in Kenya; and

(iii) the name, address and othercontact information of theauthorized agent.

(4) The constitution of a public benefit organization thatintends to register shall

(a) state(i) the organizations name;(ii) the objectives of the

organization;

(iii) that participation in andmembership of the public

benefit organization shall be


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voluntary;

(iv) that the organizations incomeand property are notdistributable to any person,except as reimbursement ofreasonable expenses or

payment of reasonablecompensation for servicesrendered;

(b) make provision for the organization tobe a body corporate and have an

identity and existence distinct from itsmembers or governing body;

(c) ensure that the members or governingbody have no rights in the property orother assets of the organization solely

by virtue of their being members orthe governing body;

(d) specify the organizational structuresand mechanisms for its governance;

(e) provide for a governing bodyconsisting of not less than fivepersons, three of whom shall not berelated to each other;

(f) in the case of international non-governmental organizations, specifythe authorized agent, being a Kenyancitizen, retained by the organization,upon whom official notices,summonses and other process may beserved;

(g) set out the rules for convening andconducting meetings, includingquorums required for and the minutesto be kept of those meetings;

(h) determine the manner in whichdecisions are to be made;

(i) provide that the organizationsfinancial transactions shall beconducted by means of a bankingaccount;


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(j) determine the financial year of theorganization;

(k) set out a procedure for changing theconstitution;

(l) set out a procedure by which theorganization may be wound up ordissolved; and

(m) provide that, when the organization isbeing wound up or dissolved, anyasset remaining after all its liabilitieshave been met, shall be transferred to

another public benefit organizationhaving similar objectives, which shall

be identified through a resolution ofthe governing body of theorganization being wound up ordissolved otherwise, the Authorityshall make this decision.

(5) The constitution of a membership organization thatintends to register as a public benefit organization may make

provision for matters relevant to conducting its affairs,including the following

(a) qualifications for and admission tomembership of the organization;

(b) circumstances in which a membershall no longer be entitled to the

benefits of membership;

(c) termination of membership;(d) appeals against loss of the benefits of

membership or against termination ofmembership and specify the

procedure for those appeals anddetermine the body to which thoseappeals may be made;

(e) membership fees and other paymentsby members;

(f) provision that except for proven grossnegligence or criminal malfeasance,members or the governing body donot become liable for any of theobligations and liabilities of the


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organization solely by virtue of their

status as members or the governingbody of the organisation;

(g) appointment of the governing bodyand their respective functions;

(h) procedure for nominating, electing orappointing the governing body andtheir powers and functions;

(i) circumstances and manner in whichmembers of the governing body may

be removed from office and provide

for appeals against such removal andspecify procedures for those appealsand determine a body to which thoseappeals can be made;

(j) provision that members of itsgoverning body are not personallyliable for any loss suffered by any

person as a result of an act oromission which occurs in good faithwhile the office-bearer is performingfunctions for or on behalf of the

organization;

(k) making of investments;(l) provisions for avoiding conflict of

interest and dealing with it where itarises;

(m) the purposes for which the funds ofthe organization may be used; and

(n) acquiring and controlling of assets.(6) Subject to subsections (4) and (5), the governing

body of a public benefit organization shall adopt such by-laws or rules as may be necessary to enable it to perform itsfunctions and exercise its powers.

(7) The governing body of a public benefit organizationshall not delegate

(a) its duties to review and approve theassets, liabilities, income,expenditures, and programs of the

public benefit organization for thepast year and the anticipated assets,


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liabilities, income, expenditures and

programs for the upcoming year;

(b) the selection of its members;(c) the process by which its constitution

or other founding instrument can beamended; or

(d) decisions to deregister, dissolve, orwind-up the public benefitorganization.

(8) A public benefit organization shall notify the

Authority of any change in the particulars submitted undersubsection (2) or (3) within sixty days of occurrence.

Consideration

of application.

9.(1) The Authority shall, within sixty days afterreceiving an application under this Act

(a) consider the application and anyfurther information provided by theapplicant; and

(b) if satisfied that the application meetsthe requirements of this Act, registerthe organization as a public benefit

organization.(2) If, after considering an application, the Authority is

not satisfied that the application complies with therequirements for registration, the Authority shall forthwith,in writing, notify the applicant accordingly, giving reasonsfor the decision and informing the applicant of the duration,which shall be a period not exceeding thirty days from thedate of the notice, during which to comply with thoserequirements.

(3) The period within which compliance shall beeffected under subsection (2) may be extended by the

Authority upon good cause being shown by the applicant,but such extension shall only be granted once and shall befor a maximum period of twenty-one days.

(4) If an applicant who has received a notice in terms ofsubsection (2) complies with the requirements forregistration within the prescribed period, the Authority shall,within fourteen days of receipt of the requestedrequirements, register the public benefit organizationconcerned accordingly.


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(5) If an applicant who has received a notice in terms of

subsection (2) fails to comply with the requirements set outin that notice, the Authority shall

(a) refuse to register the public benefitorganization concerned; and

(b) notify the applicant in writing of therefusal and the reasons for the refusalwithin the number of days remainingin the original sixty day period formaking a decision.

Certificate of

registration.

10.(1) Upon registering a public benefit organization,the Authority shall issue a certificate of registration in the

prescribed form.

(2) A certificate of registration shall be a conclusiveevidence of the authority to operate throughout Kenya asspecified in the constitution of the public benefitorganization or in the certificate of registration.

(3) A registered public benefit organization shall byvirtue of such registration be a body corporate with

perpetual succession capable, in its name, of

(a) suing and being sued;(b) taking, purchasing or otherwise

acquiring, holding, charging ordisposing of movable and immovable

property;

(c) entering into contracts; and(d) doing or performing all such other

things or acts necessary for properperformance of its functions underthis Act, which may lawfully be doneor performed by a body corporate.

(4) A public benefit organization which has beenregistered retains its registration until

(a) its registration is cancelled under thisAct;

(b) the organization is voluntarilyderegistered; or

(c) the organization is wound-up ordissolved.


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International

organizations.

11.(1) An organization which is registered outsideKenya and which intends to operate in Kenya shall apply tothe Authority for a certificate to operate in Kenya.

(2) The Authority shall take any of the followingactions on an application made under subsection (1)

(a)exempt the organization from registration,and instead grant that organization a permitto operate in Kenya, if that organizationdoes not intend to directly implement anyactivities or programmes in Kenya oroperate from Kenya to implement any

activities or programmes in anothercountry;

(b)require the organization to apply forregistration as an international organization,if that organization intends to directlyimplement any activities or programmes inKenya or operate from Kenya to implementany activities or programmes in anothercountry.

(3) The Authority shall not exempt an organizationfrom registration under subsection (2)(a) if that organization

intends to

(a) engage in direct implementation of any activityor program in Kenya or operate from Kenya toimplement any activities or programs inanother country;

(b) raise any subscriptions or engage in any otherform of raising of funds in Kenya.

(4) The Authority shall require an organization thatapplies for registration pursuant to subsection (2) (b) toundergo the same registration procedures, and satisfy such

application requirements, as may be provided for in theregulations.

(5) An organization registered pursuant to anapplication made under subsection (2)(b) shall be required

by the Authority to

(a) have at least one third of its directors who areKenyan citizens and who are resident inKenya; and

(b) maintain an office in Kenya.


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(6) Regulations shall provide for the regulation of

organizations issued with a permit to operate in Kenya undersubsection (2) (a).

Presumption of

registration.

12. If, upon the expiry of sixty days from the date apublic benefit organization made an application forregistration under section 9(1), no decision has been made

by the Authority, the public benefit organization may applyto the Tribunal for an order requiring the Authority to issueto it a certificate of registration or communicate to theorganization that the registration has been refused, togetherwith the reasons therefor.

Effect ofregistration.

13.(1) The certificate of registration issued by theAuthority shall be conclusive evidence that theorganization

(a) has met all the requirements forregistration;

(b) has been duly registered inaccordance with this Act unless it is

proved that the registration thereofhas been cancelled;

(c) is a body corporate.Service of

official notices,

letters,

summons or

legal process.

14. Any official notices, letters, summons, or other legalprocess shall be considered validly served on a registeredpublic benefit organization if it is delivered in person or bymail to the authorized agent or to the address specified

pursuant to section 8 (2) (d) and (3) (d) of this Act.

Register of

public benefit

organisations.

15. (1) The Authority shall maintain a register of allregistered public benefit organizations and such registershall include the following information

(a) the area of the activities of theorganization;

(b) the registered officials for the timebeing in charge of the organization;

(c) any information presented to theAuthority by the organization pursuant

to this Act or regulations;

(d) a detailed inventory of the assets ofthe organization;

(e) any other information that theAuthority may deem necessary to


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include or as may be provided in the

regulations.

(2) The register kept under this section shall

(a) be open to public inspection duringordinary business hours; and

(i) any person may request, inperson or by mail, a copy ofany entry in the register; and

(ii) no more than a reasonablecharge may be made for a copy

of an entry in the register;(b) be made available through the

internet.

(3) Any person may, upon payment of the prescribedfee-

(a) inspect the register or any documentsfiled with the Authority;

(b)require to be supplied with a certificate,duly certified by the Authority, showingthe subsisting entries in the register

relating to any organization registeredunder this Act; or

(c) require to be supplied with a copy of, oran extract from, any document filed withthe Authority duly certified by theAuthority to be a true copy or extract, asthe case may be.

(4) Despite subsection (2), the Authority may refuse toissue a copy of a certificate of registration to an applicantunless that applicant satisfies such conditions as the

Authority may determine, including satisfying the Authorityas to the intention of the use of the copy.

(5) A copy of an entry requested under subsection (2) (a)(i), or a written decision explaining the reasons for thedenial of the request, shall be furnished to the personmaking the request within thirty days of request.

(6) Within fourteen days after the end of each quarter ofthe financial year, the Authority shall publish in the Gazetteand on a website which it shall maintain for the purpose of

publication of information relating to its operations, the


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names of

(a) all public benefit organizations that areregistered;

(b) all public benefit organizations whoseregistration were cancelled during the

preceding quarter of the financial year; and

(c) all public benefit organizations whichderegistered voluntarily, were wound up ordissolved during the previous quarter of thefinancial year.

(7) A public benefit organization that has beenderegistered shall be removed from the register, but its entryin the register, including the decision on deregistration andthe reasons thereof, shall be retained and made available tothe public upon request.

(8) The register shall be received in proceedingsbefore any court or tribunal as evidence of the mattersrecorded therein which are required by or under this Act to

be so recorded.

(9) A document purporting to be certified by theDirector to be a true copy of an entry in the register stating

that a public benefit organization is not, or was notregistered on a date specified in the document, shall bereceived in proceedings before a court or tribunal as prima

facie evidence of any such matters contained in the entry orof that fact, as the case may be.

Refusal of

registration.

16. (1) The Authority may refuse to register anyorganization as a public benefit organization where, in itsopinion

(a) the application for registration doesnot comply with the requirements of

this Act;(b) the objectives of the proposed public

benefit organization contravenes anywritten law;

(c) the applicant organization hascommitted a serious violation orrepeated violation of this Act, otherlaws or regulations;

(d) the applicant has given false ormisleading information in any


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material particular;

(e) the name of the proposed publicbenefit organization is similar to thename of another institution, otherorganization or entity as to be likelyto mislead the public as to its trueidentity.

(2) Where the Authority has refused registration of aproposed public benefit organization, it shall, withinfourteen days of the decision, notify the applicant of thereasons for the refusal.

Review by the

Authority or

appeal to the

Tribunal.

17. (1) An applicant who is aggrieved by a decision ofthe Authority may apply to the Authority for review of itsdecision within thirty days of receiving a written notice ofthe decision.

(2) An applicant who is aggrieved by a decision of theAuthority following review may appeal to the Tribunalagainst the decision.

(3) Without prejudice to subsection (1), an applicantwho is aggrieved by a decision of the Authority may, withinthirty days of receiving a written notice of the decision,

appeal to the Tribunal against the decision of the Authority.(4) Upon receipt of an appeal, the Tribunal shall,

within sixty days from the date of receiving the appeal,consider and determine the appeal.

Procedure for

suspension or

cancellation.

18. (1) Where a public benefit organization registeredunder this Act is in violation of the provisions of this Act,the Authority may serve on the organization a default noticein writing specifying the nature of the default.

(2) Upon receipt of the default notice, the publicbenefit organization may make representations in writing to

the Authority regarding remedy or rectification of thedefault or violation of the Act.

(3) Where the public benefit organization has failed toremedy or rectify the default or ensure compliance with the

provisions of this Act within the time specified in the defaultnotice or has not made representations satisfactory to theAuthority, the Authority shall fine, suspend or cancel thecertificate of registration of the organization but in no eventshall the time limit for compliance be less than fifteen daysafter receipt of the default notice.


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(4) A public benefit organization that has been fined or

whose certificate has been suspended or cancelled may,within sixty days of receiving notice of the decision, applyto the Authority for review of the decision to fine it, suspendor cancel the certificate if it is dissatisfied by the reasons forsuch fine, suspension or cancellation.

(5) Notwithstanding subsection (4), a public benefitorganization which is dissatisfied by the decision of theAuthority to fine it, suspend or cancel a certificate mayappeal to the Tribunal.

Suspension or

cancellation ofcertificate.

19. (1) Subject to section 17, the Authority may cancel

a certificate of registration issued under this Act, if (a) the public benefit organization has committed

violations of this Act;

(b) the public benefit organization is carrying outits activities in a manner which is contrary toits constitution.

(2) The Authority may, subject to section 17, suspendor cancel a certificate of registration issued under this Act ifthere is substantial and credible evidence that the public

benefit organization has ceased to exist.

(3) Where the certificate of registration has beensuspended or cancelled the Authority shall

(a) in writing, notify the relevant public benefitorganization within twenty-one days from thedate of suspension or cancellation;

(b) order such public benefit organization to stopits operations; or

(c) remove the name of such public benefitorganization from the register.

(4) Cancellation of the certificate of registrationterminates all the public benefit organization benefits butdoes not terminate any obligations, including those withrespect to monies or assets obtained while the organizationwas a registered public benefit organization, nor does itterminate reporting requirements covering any such moniesor assets or any period of time during which it was aregistered public benefit organization.

PART III- SELF-REGULATION, ADMINISTRATIVEAND REPORTING OBLIGATIONS


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Freedom of

association.

20. (1) Every organization has the freedom to

(a) join in association with other organization ororganizations as it may desire and to

participate in forming a forum of publicbenefit organizations under this Act;

(b) join a forum of public benefit organizations;(c) exit a forum of public benefit organizations.

(2) Every organization which is a member of a forum ofpublic benefit organizations has the right, subject to theconstitution of that forum, to

(a)participate in its lawful activities;(b)participate in the election of its

officials and representatives.

Establishment

of the

Federation, etc.

21. (1) There is established a federation of registeredpublic benefit organizations to be known as the NationalFederation of Public Benefits Organizations, which shall bean umbrella organization of all public benefit organizationsregistered under this Act and the self-regulation forums of

public benefit organizations recognised by the Authority.

(2) Every registered organization shall be eligible for

membership of the Federation.

(3) The Federation shall be a body corporate withperpetual succession capable in its name of-

(a) suing and being sued;(b) taking, purchasing or otherwise acquiring, holding,

charging or disposing of movable and immovableproperty;

(c) entering into contracts; and(d) doing or performing all such other things or acts

necessary for proper performance of its functionsunder this Act, which may lawfully be done or

performed by a body corporate.

(4) The Federation shall

(a)be managed by a governing boardconsisting of not more than ninemembers;

(b)have a secretariat under the supervisionof the chief executive officer of the


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Federation who shall also be the

secretary to the governing board of theFederation;

(c) subject to paragraphs (a) and (b), adoptits own structure, rules and proceduresfor the efficient administration of itsactivities.

(5) The elections to an office in the governing board ofthe Federation shall be supervised by the IndependentElectoral and Boundaries Commission.

(6) The rules on the conduct of the elections to an

office in the governing board of the Federation shall ensurethat every member organization is able to vote in theelection and shall include the quorum required for the

purposes of the election.

(7) The Cabinet Secretary shall have powers to ensurethe compliance with the rules and procedures of theFederation at all times including during its elections.

(8) Notwithstanding anything contained in the rules ofthe Federation, a member of the governing board of theFederation shall hold office for five years but shall be

eligible for election for one more term.(9) The objectives and functions of the Federation

shall be to

(a)provide leadership on matters of interestto the sector and for the promotion ofthe sector generally;

(b)promote self-regulation by the forumsfor self-regulation of public benefitorganizations;

(c)co-ordinate the self-regulation forumsregistered under this Part;

(d)monitor the performance of the self-regulation forums and advise theAuthority in the monitoring andenforcement of compliance by theseforums and their respective public

benefit organizations members with theprovisions of this Act, the regulationsand the general code of conduct and thecodes of conduct adopted by the self-


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regulation forums;

(e)advise the Authority generally on thedevelopment of the public benefitorganizations sector;

(f) facilitate the building of the capacity ofnon-governmental organizations for theenhancement of the effectiveness ofthese organizations;

(g)render such advice to donors and theAuthority on any issue relating to thesector.

(10) The Cabinet Secretary, the Authority and theFederation shall have regular consultations for the purposeof harmonising their policies and for the co-ordination ofthe sector.

(11) The Tribunal shall have jurisdiction in respect ofdisputes mentioned in subsection (12).

(12) The disputes referred to in subsection to insubsection (11) shall be disputes-

(a) between any member of the Federation andthe Federation;

(b) between the members of the Federation;(c) between the Federation and the Authority.

(13) The Tribunal shall also determine any appealsfrom-

(a) a decision of the Cabinet Secretary or theAuthority concerning the Federation;

(b) a decision of the Federation.Appointment to

statutory

bodies, etc.

22. Where, under any written law, the Federation isrequired to nominate or appoint a person to membership inany public body, such nomination or appointment shall bemade by the governing body of the Federation and theFederation shall observe the following in the nomination orappointment-

(a) the provisions of the Constitution and anyother written law on leadership and integrity;


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(b) the principles of equality, equity and non-discrimination;

(c) consultations and public participation;(d) subject to section 35(1)(h) and (i), not to

nominate or appoint members of theFederations governing body; and

(e) the need to ensure appropriate expertise inthe respective appointments or nominationsand fair representation of the variousthematic areas of public benefit activities.

Organizationsmay join self-

regulation

23. (1) Each organization registered under this Act mayvoluntarily join and maintain membership in a self-regulation forum of registered public benefit organizations.

(2) Each forum shall enter into a recognition agreementwith the Authority upon proof to the satisfaction of theAuthority that the forum represents a significant number oforganizations registered by the Authority as prescribed bythe Cabinet Secretary.

Self-regulation

forums to

develop and

maintain codes

of conduct.

24. (1) Each forum of public benefit organizations shallestablish and maintain a code and standards by which itsmembers shall be bound.

(2) The forums of public benefit organizations may, forpurposes of enhancing self-regulation, organise themselvesin such federation of forums as may be expedient for that

purpose.

(3) The forums shall ensure that each code of conductadopted by them is consistent with the national and foreign

policies and the laws of Kenya, and that such code ofconduct contain, as a minimum, the provisions of the

general conduct of conduct.Organizational

integrity and

internal self-

regulation.

25.(1) The governing body of a public benefitorganization shall be distinct and separate from theadministrative and day-to-day management body of theorganization.

(2) The principles of transparency and accountabilityshall be applied to all the affairs and activities of a public

benefit organization, whether with the Government, thetarget population or beneficiaries, donors, other public

benefit organizations or other stakeholders.


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(3) The governing body of a public benefit

organization shall establish clear and unambiguousguidelines relating to conduct and operations of theorganization, including guidelines to ensure that the personalinterests of its members, the staff and volunteers do notconflict with those of the organization or influence, or affectthe performance of their duties.

(4) A public benefit organization shall not discriminateagainst any person but in no event shall a public benefitorganization created to assist targeted populations, where thetarget is determined in line with social justice values, berequired to assist people of other populations.

(5) The activities of a public benefit organization shall,upon request, be open and accessible to scrutiny by itsrespective stakeholders, except for personal matters, legalmatters and proprietary information, as may be provided for

by or under any law.

Voluntary

service on

governing body.

26. Every person who serves on the governing body of apublic benefit organization shall serve on a voluntary basisand shall only be eligible for the reimbursement of costs andexpenses incurred in the service of the organization.

Ethical

principles and

aspirations.

27.(1) In the pursuit of its aims, objectives and activities,

every public benefit organization shall be guided by thefollowing principles and aspirations

(a) commitment to the sanctity of humanlife and to a peaceful and non-violentorientation in all its activities;

(b) promotion of democracy, humanrights, the rule of law, goodgovernance as well as justice for allthe people of Kenya;

(c) respect for the equality, rights anddignity of all people;

(d) promotion of social justice to ensurebalanced economic development;

(e) rejection of partisan political, ethnic,cultural, racial or religious intoleranceand all other forms of discrimination;

(f) commitment to the promotion ofgender equality and social inclusion atall levels;


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(g) maintenance of a culture oftransparency and accountability

particularly in the receipt andmanagement of funds and avoidingcorrupt and unethical practices;

(h) maintenance of high standards ofgovernance and management of the

public benefit organization byprescribing and implementingpolicies, norms of conduct andoperational requirements that apply toits staff, management and governing

body;(i) promotion of a culture of dialogue

and sharing of resources, information,expertise and experiences;

(j) maintenance of a high standard ofprofessionalism in service andinteractions and dealing with peoplethrough honesty, fairness, integrity,respect for confidentiality, objectivity,care, diligence, prudence, timelinessand straightforwardness;

(k) rejection of research efforts,programmes projects and otheractivities which are directly orindirectly aimed at developingmethods of torture, or other forms oftechniques that violate and subvert

peoples human rights;

(l) observance of clear guidelines onconflict of interest;

(m) fostering and maintaining mutualtrust, partnership and respect between

public benefit organizations, theprivate sector, donors and theGovernment;

(n) identifying and reporting any breachor violation of the provisions of thisAct to the Authority;

(o) respect for the autonomy,independence and diversity of public

benefit organizations.


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Promotion of

self-regulation.

28.(1) The Authority shall encourage umbrella

associations for public benefit organizations to develop andpublish codes of conduct applicable to members, governingbody officials, staff and volunteers of the public benefitorganizations.

(2) The Authority shall facilitate training on self-regulation of public benefit organization to deepen theknowledge and strengthen the capacity of public benefitorganizations for self-regulation.

Fiscal

transparency.

29. Every public benefit organization registered underthis Act shall

(a) implement internal accounting andadministrative procedures necessary toensure the transparent and proper use of itsfinancial and other resources;

(b) utilise its financial and other resources for theattainment of its aims, objects and purposes.

Accounts and

reports.

30.(1) Every public benefit organization registered

under this Act shall keep proper books of accounts and otherrecords in relation to its operations and activities and shall,subject to subsection (2), prepare annually a statement ofaccounts in a form which conforms to the standards of thegenerally accepted accounting practice applicable to non-

profit organizations.

(2) The financial statements prepared and submitted bya public benefit organization, shall include an opinionsigned by an independent auditor as to whether the financialstatements present fairly, in all material respects, theorganizations financial position for the reporting period.

Annual report. 31. Within six months after the end of each financialyear, every public benefit organisation registered under thisAct shall cause to be made and submitted to the Authority

(a) a statement of its accounts audited in accordancewith section 30 (2) above;

(b) a certified copy of its financial statements;(c) a report dealing generally with the programme of

activities of the public benefit organizationduring that financial year.


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Duty to provide

information.

32. Every registered public benefit organization shall

provide to the Authority, in writing, the names and physical,business and residential addresses of members of itsgoverning body within one month after any appointment orelection of the governing body.

Protection from

personal

liability.

33. No member of any governing body of a publicbenefit organization shall be held personally liable for anyact done in good faith on behalf of the organization, or byvirtue of the office held in the governing body.

PART IV ESTABLISHMENT, POWERS ANDFUNCTIONS OF THE AUTHORITY

Establishmentof the

Authority.

34. (1) There is established an Authority to be knownas the Public Benefit Organizations Regulatory Authority.

(2) The Authority is a body corporate with perpetualsuccession and a common seal and shall, in its corporatename, be capable of

(a) suing and being sued;(b) taking, purchasing or otherwise

acquiring, holding, charging ordisposing of movable and immovable

property;

(c) borrowing money or makinginvestments;

(d) entering into contracts; and(e) doing or performing all other acts or

things for the proper performance ofits functions under this Act whichmay lawfully be done or performed

by a body corporate.

(3) The Authority shall establish mechanisms to ensurethat its services are available in all parts of the Republic.

Composition of

Board of the

Authority, etc.

35.(1) There shall be a Board of the Authority whichshall consist of

(a) the chairperson appointed by the CabinetSecretary;

(b) three members, at least one of whom shall beof different gender from the other two, whohave rendered distinguished service in thecivil society, appointed by the CabinetSecretary;

(c) the Principal Secretary in the ministry


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responsible for matters relating to public

benefit organizations;

(d) the Principal Secretary in the ministryresponsible for matters relating to finance;

(e) the Principal Secretary in the ministryresponsible for matters relating to foreignaffairs;

(f) the Attorney-General;(g) one public officer representing the Principal

Secretary responsible for such departments asthe Authority shall determine;

(h) the chairperson of the governing board of theFederation;

(i) two members of the governing board of thefederation, being one woman and one man,nominated by the members of the governing

board of the Federation and appointed by theCabinet Secretary; and

(j) the Director.(2) No person may be appointed as chairperson of the

Board unless that person possesses at least ten years

experience, in matters relating to civil society.(3) No person shall be eligible for appointment under

subsection (1) (b) or nomination under subsection (1) (g)unless such person has at least ten years experience in the

public benefit organizations sector.

(4) A person appointed as chairperson or member of theBoard shall before taking office relinquish any directorshipor employment in a public benefit organization that that

person may have held before the appointment.

(5) A member of the Board, other than an ex- officiomember, may resign from office by a letter addressed to the

Cabinet Secretary.(6) The Board may co-opt such number of persons not

exceeding three to bring such expertise to the Board as theBoard may require for the better discharge of its functions.

(7) Persons co-opted under subsection (6) shall have noright to vote on any matter at a meeting of the Board.

(8) The Cabinet Secretary shall prescribe rules for thenomination of the members contemplated under subsection(1) (g).


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Qualifications

of members of

the Authority.

36.(1) A person shall be qualified for appointment asa member of the Board if such person

(a) is a citizen of Kenya;(b) is a person of high moral character and proven

integrity;

(c) is a holder of at least an undergraduate degreefrom a university recognized in Kenya;

(d) has knowledge and at least five yearsexperience in matters relating to public benefitorganizations, finance or management; and

(e) has no subsisting office or membership in apublic benefit organization.

(2) No person shall be qualified for appointment as amember of the Board of the Authority if such person

(a) is a member of the NationalAssembly;

(b) is a member of a local authority;(c) is a member of the executive bodyof,

or is actively involved in the affairs

of, a political party.Term of office. 37. The chairperson and the members of the Board of

the Authority shall hold office for a term of three years andmay be re-appointed for a further and final term of threeyears.

Oath of office. 38. The chairperson, the members of the Board oftheAuthority and the Director shall each make and subscribe toa prescribed oath or affirmation of office before the ChiefJustice.

Vacancy. 39. (1) The office of the chairperson or a member ofthe Board of the Authority shall become vacant if theholder

(a) dies;(b) resigns from office by writing under

his hand addressed to the CabinetSecretary;

(c) is removed from office in accordancewith the provisions of section 40;

(d) is convicted of an offence and


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sentenced to imprisonment for a term

of three months or more without theoption of a fine;

(e) is unable to discharge the functions ofhis office by reason of physical ormental infirmity;

(f) is absent from three consecutivemeetings of the Board without goodcause; or

(g) is declared bankrupt.(2) The Cabinet Secretary shall notify every vacancy inthe Gazette within seven days of the occurrence of the

vacancy.

Removal from

office.

40. (1) A member of the Board may be removed fromoffice by the Cabinet Secretary

(a) for gross misconduct or misbehaviour; or(b) if convicted of an offence involving moral

turpitude,

but shall not be so removed except on a resolution of theBoard supported by at least two-thirds of the members of the

Board.

(2) For the purposes of subsection (1), misbehaviourincludes, but is not limited to criminal conduct and breach ofthe standards of professionalism referred to in section 27 (1)(j).

Filling of

vacancy.

41. (1) Where a vacancy occurs in the Board as aresult of death, disability, resignation or removal of amember of the Board, the Cabinet Secretary shall appoint areplacement from among the short listed persons considered

by the National Assembly in accordance with the Third

Schedule.(2) A person who is appointed in place of a member of

the Board whose office has become vacant under thissection shall hold office for the remainder of the term ofoffice of that member of the Board.

Functions of the

Authority.

42.(1)The functions of the Authority shall be to(a) register and de-register public benefit

organizations in accordance with thisAct


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(b) maintain a register of public benefitorganizations registered under thisAct with the precise sectors,affiliations and locations of theiractivities;

(c) interpret the national policy on publicbenefit organizations so as to assist inits smooth implementation andobservance by Governmentministries, departments and agenciesat various levels;

(d) receive and review annual reports ofpublic benefit organizations;

(e) advise the Government on theactivities of public benefitorganizations and their role indevelopment within Kenya;

(f) issue forms, instructions, and modeldocuments;

(g) facilitate information sharing andnetworking between public benefitorganizations and the Government;

(h) institute inquiries to determine if theactivities of public benefitorganizations do not comply with thisAct or any other law;

(i) provide advice and training to publicbenefit organizations; and

(j) do anything incidental or conduciveto the performance of any of the

preceding functions.

(2) In the performance of its functions in terms ofsubsection (1), the Authority shall be independent and shall

be not act under the direction or control of any person orauthority.

Powers of the

Board.

43. The Board shall have all powers necessary for theproper performance of the functions of the Authority underthis Act and in particular, but without prejudice to thegenerality of the foregoing, the Boardshall have power to

(a) control, supervise and administer the assets of theAuthority in such manner as best promotes the

purpose for which the Authority is established;

(b) determine the provisions to be made for capital


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and recurrent expenditure and for the reserves of

the Authority;

(c) receive any grants, gifts, donations orendowments and make legitimate disbursementstherefrom;

(d) open such banking accounts for its funds as maybe necessary;

(e) invest any funds of the Authority not immediatelyrequired for its purposes in the manner providedin section 60;

(f) undertake any activity necessary for thefulfilment of any of its functions.

Conduct of

business and

affairs of the

Board.

44. (1) The conduct and regulation of the business andaffairs of the Board shall be as provided in the FourthSchedule.

(2) Except as provided in the Fourth Schedule, the Boardmay regulate its own procedure.

Director. 45. (1) There shall be a Director of the Authority whoshall be appointed by the Authority.

(2) The Director shall hold office for a period of five

years, on such terms and conditions of employment as theAuthority may determine and shall be eligible for re-appointment for a further and final term of five years.

(3) A person is not eligible for appointment as theDirector unless he or she is a person of integrity and hasknowledge or at least ten years demonstrable experience inmatters relating to strategic and program planning, operationsor management, including staff management or supervision, orany equivalent combination of education and experience fromwhich comparable knowledge, skills and abilities have beenachieved.

(4) The Director shall

(a)be the chief executive officer and the secretary to theBoard; and

(b)subject to the directions of the Board, be responsiblefor the day to day management of the affairs and staffof the Authority.

(5) The Director shall, unless in any particular case theBoardotherwise directs in writing, attend all meetings of theBoard but shall have no vote on any matter falling to be


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decided by the Board at any such meeting.

(6) The Director may be removed from office by theBoardbefore expiry of the term set out in the instrument ofappointment only for inability to exercise the functions of theoffice, whether arising from infirmity of body or mind or anyother cause, or for misbehaviour.

(7) For the purposes of subsection (6),misbehaviour includes, but is not limited to criminalconduct and breach of the standards of professionalismreferred to in section 27(1)(j).

(8) The Director shall be removed from office by the

Board if the question of the Directors removal has beenreferred to a special committee of the Board appointed for the

purpose of considering the matter and

(a) the committee has so recommended; and(b) the Board has approved the committees

recommendation by the votes of not less thantwo-thirds of all its members.

Staff of the

Authority.

46.(1) The Board shall appoint a Deputy Director andsuch officers and other staff as are necessary for the properdischarge of the functions of the Authority under this Act,

upon such terms and conditions of service as it maydetermine.

(2) In appointing officers and staff under subsection(1), the Board shall have regard to gender equity andregional balance.

Delegation by

the Board.

47. The Boardmay, by resolution either generally orin any particular case, delegate to any committee or to anymember, officer, employee or agent of the Board, the exerciseof any of the powers or the performance of any of thefunctions or duties of the Authority under this Act or under

any other written law.Protection from

personal

liability.

48. (1) No act or omission by any member of the Boardor by any officer, employee, agent or servant of the Board shall, if the act or omission was done in good faith for the

purposes of executing a function, power or duty under theAct render such member, officer, employee, agent or servant

personally liable to any, action, claim or demandwhatsoever.

(2) The provisions of subsection (1) shall not relieve theAuthority of the liability to pay compensation to any person


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for any injury to the person, the persons property or to any

of the persons interests caused by the exercise of any powerconferred by this Act or by failure, whether wholly or

partially, of any works.

Common seal. 49. (1) The common seal of the Authority shall be keptin such custody as the Board may direct and shall not be usedexcept on the order of the Board.

(2) The affixing of the common seal of the Authorityshall be authenticated by the signature of the chairpersonand the Director and any document not required by law to bemade under seal and all decisions of the Board may be

authenticated by the signatures of both the chairperson andthe Director.

(3) Notwithstanding the provisions of subsection (2)the Boardshall, in the absence of either the chairperson orthe Director in a particular matter, nominate one member toauthenticate the seal on behalf of either the chairperson orthe Director.

(4) The common seal of the Authority when affixed toa document and duly authenticated shall be judicially andofficially noticed and unless and until the contrary is proved,any necessary order or authorization by the Board under this

section shall be presumed to have been duly given.

PART VTHE PUBLIC BENEFIT ORGANIZATIONSDISPUTES TRIBUNAL

Establishment

of the Tribunal.

50.(1) There is hereby established a tribunal to beknown as the Public Benefit Organizations DisputesTribunal which shall consist of members appointed by theChief Justice and approved by the National Assembly, asfollows

(a) a chairperson who shall be anadvocate of the High Court of not less

than seven years standing;

(b) two advocates of the High Court ofnot less than five years standing;

(c) two persons having such specializedskill or knowledge necessary for thedischarge of the functions of theTribunal .

(2) Not more than two-thirds of the personsappointed under subsection (1) shall be from one gender.


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(3) A member or staff of the Authority shall not

serve as a member of the Tribunal.

(4) The quorum for a meeting of the Tribunal shallbe the chairperson and two other members.

(5) There shall be paid to the members of theTribunal such remuneration and allowances as the Authoritymay, in consultation with the Salaries and RemunerationCommission, determine.

(6) The office of a member of the Tribunal shallbecome vacant

(a)

at the expiration of three years fromthe date of his appointment;

(b) if the member ceases by any reason tobe an advocate as referred to insubsection (1);

(c) if the member is removed frommembership of the Tribunal by theChief Justice for failure to dischargethe functions of office (whetherarising from infirmity of body ormind or from any other cause) or for

misbehaviour; or

(d) if the member resigns.Jurisdiction of

the Tribunal.

51. (1) The Tribunal shall have jurisdiction to(a) hear and determine complaints arising

out of any breach of the provisions ofthis Act;

(b) hear and determine any matter orappeal made to it pursuant to the

provisions of this Act; and

(c) perform such other functions as maybe conferred upon it by this Act or byany other written law being in force.

(2) The jurisdiction conferred upon the Tribunal undersubsection (1) excludes criminal jurisdiction except as

provided under section 53.

Powers of the

Tribunal.

52.(1) On the hearing of a complaint or an appeal, theTribunal shall have all the powers of a subordinate court ofthe first class to summon witnesses, to take evidence upon


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Cap. 80.

oath or affirmation and to call for the production of books

and other documents.

(2) Where the Tribunal considers it desirable for thepurpose of minimizing expense or avoiding delay or for anyother special reason, it may receive evidence by affidavitand administer interrogatories and require the person towhom the interrogatories are administered to make a fulland true reply to the interrogatories within the time specified

by the Tribunal.

(3) In its determination of any matter, the Tribunal maytake into consideration any evidence which it considers

relevant to the subject of the matter before it,notwithstanding that the evidence would not otherwise beadmissible under the Evidence Act.

(4) The Tribunal shall have power to summon expertevidence as may be necessary for the discharge of itsfunctions under this Act.

(5) The Tribunal shall have power to award the costs ofany proceedings before it and to direct that costs shall betaxed in accordance with any scale prescribed for suits in theHigh Court or to award a specific sum as costs.

(6) All summonses, notices or other documents issuedunder the hand of the chairperson of the Tribunal shall bedeemed to be issued by the Tribunal.

(7) Upon any complaint or appeal being made to theTribunal under this Act, the Tribunal may

(a) confirm, set aside, vary or quash theorder or decision in question;

(b) require the Authority to revise orreview its decision;

(c) require the Authority to inquire intospecific details from the appellant andmake further consideration of theapplication; or

(d) make such other order as may beappropriate in the circumstances.

(8) Without prejudice to the generality of subsection(7) (b), the Tribunal may make an order for the maintenanceof the status quo of any matter or activity which is thesubject of the complaint or appeal until the complaint orappeal is determined.


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(9) Any interested party may be represented before

the Tribunal by an advocate or by any other person whomthe Tribunal may, in its discretion, admit to be heard on

behalf of the party.

(10) A decision made by the Tribunal shall be finaland binding on the parties unless judicial review thereofcommences within fourteen days from the date of theTribunal's decision.

(11) Any party to the review aggrieved by the decisionof the Tribunal may appeal to the High Court and thedecision of the High Court shall be final.

(12) A party to the review which disobeys the decisionof the Tribunal or the High Court shall be in breach of thisAct and any action by such party contrary to the decision ofthe Tribunal or the High Court shall be null and void.

Disobedience of

summons to

give evidence,

etc.

53. Any person summoned by the Tribunal to attendand give evidence or to produce any records, books ofaccount, statements, or other documents or required toanswer interrogatories and who, without sufficient cause

(a) refuses or fails to attend at the timeand place mentioned in the summonsserved on him;

(b) refuses or fails to answer, or toanswer fully and satisfactorily, to the

best of his knowledge and belief allquestions lawfully put to him by orwith the concurrence of the Tribunal;or

(c) refuses or fails to produce anyrecords, books of account, statementsor other documents which are in his

possession or under his controlmentioned or referred to in any

summons served on him, commits anoffence and is liable upon convictionto a fine not exceeding fifty thousandshillings or to imprisonment for aterm not exceeding two years, or to

both.

Enforcement of

orders for

damages and

costs.

54.(1) Where the Tribunal awards damages or costs inany matter before it, it shall, on application by the person inwhose favour the damages or costs are awarded, issue tohim a certificate stating the amount of the damages or costs.


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(2) Every certificate issued under subsection (1) may be

filed in the High Court by the person in whose favour thedamages or costs have been awarded and, upon being sofiled, shall be deemed to be a decree of the High Court andmay be executed as such.

Rules of the

Tribunal.

55. Except as otherwise provided in this Act, the ChiefJustice may, in consultation with the chairperson of theTribunal, and by notice in the Gazette, make rules governingthe practice and procedure of the Tribunal having regard tothe objects if this Act.

PART VI FINANCIAL PROVISIONS

Funds of the

Authority.

56. The funds of the Authority shall comprise of(a) such fees, monies or assets as may

accrue to or vest in the Authority in thecourse of the exercise of its powers orthe performance of its functions underthis Act or under any written law; and

(b) all monies from any other sourceprovided for or donated or lent to theAuthority.

Financial year. 57. The financial year of the Authority shall be theperiod of twelve months ending on the thirtieth June in eachyear.

Annual

estimates.

58.(1) At least three months before the commencement ofeach financial year, the Board shall cause to be preparedestimates of the revenue and expenditure of the Authorityforthat year.

(2) The annual estimates shall make provision for allestimated expenditure of the Authority for the financial yearand in particular, the estimates shall provide for

(a) the payment of the salaries, allowancesand other charges in respect ofmembers of the Board and staff of theAuthority;

(b) the payment of pensions, gratuities andother charges in respect of the staff ofthe Authority;

(c) the proper maintenance of thebuildings and grounds of the Authority;


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(d) the maintenance, repair andreplacement of the equipment andother property of the Authority; and

(e) the creation of such reserve funds tomeet future or contingent liabilities inrespect of retirement benefits,insurance or replacement of buildingsor equipment, or in respect of suchother matter as the Board may deemappropriate.

(3) The annual estimates shall be approved by the

Board before the commencement of the financial year towhich they relate and shall be submitted to the CabinetSecretary for approval and after the Cabinet Secretarysapproval, the Board shall not increase the annual estimates ofthe Authority without the consent of the Cabinet Secretary.

Accounts and

audit.

59.(1) The Board shall cause to be kept all properbooks and records of accounts of the income, expenditure andassets of the Authority.

(2) Within a period of three months after the end of eachfinancial year, the Boardshall submit to the Auditor-Generalthe accounts of the Authority together with

(a) a statement of the income and expenditure ofthe Authority during that year; and

(b) a balance sheet of the Authority on the last dayof that year.

No. 12 of 2003.

(3) The accounts of the Authority shall be audited andreported upon in accordance with the Public Audit Act, 2003.

Investment of

funds.

60. The Board may invest any of the funds of theAuthority in securities, in which for the time being trusteesmay by law invest trust funds, or in any other securities or

banks which the Treasury may, from time to time, approve forthat purpose.

PART VII MISCELLANEOUS PROVISIONS

Voluntary

deregistration,

dissolution or

winding-up.

61.(1) A registered public benefit organization mayderegister, wind itself up or dissolve voluntarily by sendingto the Authority

(a) in the case of a membershiporganization, a resolution by a vote ofat least two-thirds of the members of


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the organization, signed by the

chairperson of the governing body ofthe organization, or in the case of anon-membership organization, avoluntary decision made by itsgoverning body in accordance withthe public benefit organizationsconstitution

(i) stating its intention toderegister, wind up or dissolvevoluntarily and the reasonstherefor; and

(ii) specifying a date, notexceeding two months fromthe date of the resolution, onwhich the deregistration is totake effect; and

(b) a copy of the reports referred to insection 30 for the period from its

previous financial year up to the dateof the resolution contemplated in thissubsection.

(2) If a registered public benefit organization is beingwound up or dissolved in terms of any other law, theorganization shall, within one month after completion of thewinding-up or dissolution process or the relevant order ofcourt, send to the Authority

(a) a written notice(i) stating this fact;(ii) containing certified copies of

all relevant documentsconfirming the winding up ordissolution; and

(b) a copy of the reports referred to insection 30 for the period from its

previous financial year up to the dateof the written notice contemplated inthis subsection.

(3) Upon receiving a resolution or notice of voluntaryderegistration or winding-up or dissolution from a registered

public benefit organization, the Authority shall on the datespecified in the resolution or notice

(a) cancel the organizations certificate of


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registration, and deregister it by

amending the register; and

(b) notify the organization in writing ofthe deregistration and confirm thedate on which the amendment wasmade to the register.

(4) When an organization is deregistered, wound up ordissolved, any asset remaining after all its liabilities have

been met, shall be transferred to another public benefitorganization having similar objectives, which shall beidentified through a resolution of the governing body of the

organization being deregistered, wound up or dissolved;otherwise, the Authority shall make this decision.

Safety of assets

on

deregistration.

62.(1)Where the Authority has cancelled a certificateof registration of an organization under this Act, theAuthority may require any officials or members of theorganization, who can by reasonable effort be found inKenya, to provide the Authority with an inventory, and thewhereabouts, of the assets of the organization.

(2) The Cabinet Secretary may by regulations prescribethe procedure for the tracing and safeguarding of assetsunder this section.

(3) A person who fails to provide an inventory undersubsection (1), when required to do so by the Authoritycommits an offence.

(4) It shall be the responsibility of the Authority toprove that the inventory could by reasonable means beprovided by a person accused by this section.

(5) An organization that desires to dissolve voluntarilyshall have the right to determine the organizations registeredunder this Act to which it shall distribute its assets providedthat such organizations are certified by the Authority to be in

good standing.

General power

to institute

inquiries.

63.(1) The Authority may, where it deems necessary,institute an inquiry with regard to a public benefitorganization in accordance with section 42 (1) (h).

(2) The Authority may-

(a) conduct an inquiry under subsection (1) on itsown; or

(b) appoint a person to conduct the inquiry, and


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make a report to the Authority.

(3) For the purposes of an inquiry under subsection (1),the Authority, or a person appointed by the Authority toconduct the inquiry, may direct any person-

(a) if a matter in question at the inquiry is one onwhich the person has or can reasonably obtaininformation, to

(i) provide accounts and

statements in writing with

respect to the matter, or to

provide answers in writing

to any question or inquiry

addressed to the person on

the matter; and

(ii) verify any such accounts,statements or answers bystatutory declaration;

(b) to provide copies of documents which are inthe custody or under the control of the

person, and which relate to any matter at theinquiry, and to verify any such copies bystatutory declaration;

(c) to attend at a specified time and place andgive evidence or produce such documents asthe Authority or person conducting theinquiry may require.

(4) The Authority may reimburse to any personattending to give evidence or produce documents for the

purpose of an inquiry, the reasonable expenses of doing so.

Offences and

penalty.

64. Any person who(a) forges or utters any document for the

purposes of procuring registration;

(b) makes a false statement in respect ofan application for registration;

(c) makes any material false statement inany document submitted to theAuthority;


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(d) fraudulently holds out anyorganization as being registered underthis Act;

(e) fraudulently makes use of aregistration number, registrationcertificate or any informationcontained in a registration certificate,commits an offence and is liable, onconviction, to a fine not exceedingthree hundred thousand shillings, orimprisonment for a term notexceeding two years, or both.

Income and

economic

activity.

65. (1) A public benefit organization may engage inlawful economic activities as long as the income is usedsolely to support the public benefit purposes for which theorganization was established.

(2) The income of a public benefit organization mayinclude

(a) donations of cash, securities, and in-kind contributions;

(b) bequests;(c)

membership fees;

(d) gifts;(e) grants;(f) real or personal property; and(g) income generated from any lawful

activities undertaken by the publicbenefit organization with its propertyand resources.

(3) A public benefit organization may own andmanage property and assets for the accomplishment of itsnot-for-profit purposes.

Public policy

and political

activities.

66. (1) A public benefit organization may engagefreely in research, education, publication and advocacy withrespect to any issue affecting the public interest, includingcriticism of the policies or activities of the state or anyofficer or organ thereof.

(2) A public benefit organization may also express itsviews on any issue or policy that is or may be debated ordiscussed in the course of a political campaign or election.


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(3) A public benefit organization may not engage in

fundraising or campaigning to support or oppose anypolitical party or candidate for appointive or elective publicoffice, nor may it propose or register candidates for elective

public office.

(4) The government shall engage with public benefitorganizations on all matters of development and shall invitethem to participate in policy making.

Involvement by

Government.

67. The Government shall involve public benefitorganizations in policy decision making on issues affectingthem, particularly at the local levels, and every ministry

shall designate officers who shall deal with matters relatingto public benefit organizations, and work closely with eachother and with the Authority.

Entry permits.

Cap. 173.

68. Any registered public benefit organizationwishing to obtain entry permits in respect of prospectiveemployees shall, where

(a) the services of such employees arenecessary for the proper function ofthe organization;

(b) no persons with comparable skills areavailable locally; or

(c) such employees shall contributetowards the training of Kenyans toobtain scientific, technical andmanagerial skills,

apply in writing to the Principal Immigration Officer for theissuance of the required permits in accordance with the

provisions of the Immigration Act.

Regulations. 69. (1) The Cabinet Secretary may, on therecommendations of the Authority, make regulations

generally for the better carrying into effect of the provisionsof this Act.

(2) Any condition, restriction or prohibitioncontained in Regulations made under subsection (1) shall be

proportionate to the objects of those Regulations and shalllimit the rights of persons and bodies as little as isreasonably possible.

(3) If a failure to comply with a condition, restrictionor prohibition contained in Regulations under this Act is anoffence, the Regulations shall provide that, to the extent


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practicable, before being subjected to criminal liability, the

affected person shall be given notice of the offence and areasonable opportunity to comply with the Regulations.

(4) Before making Regulations under this section,the Cabinet Secretary shall, unless public interest requiresthat the Regulations be made without delay, comply with thefollowing

(a) the intention to make Regulationsshall be announced by notice in theGazette and in at least two dailynewspapers of national circulation

specifying(i) that draft Regulations have

been developed for comments;

(ii) the place where a copy of thedraft Regulations may beobtained;

(b) a period of at least one month fromthe date of the notice shall be allowedfor interested parties to comment onthe draft Regulations;

(c) comments received on the draftRegulations shall be considered

before making the Regulations.

Repeal of No.

19 of 1990.

70. The Non-Governmental Organisations Co-ordination Act, 1990, is repealed.

Transition. 71. The transitional provisions set out in the FifthSchedule shall apply upon commencement of this Act.

FIRST SCHEDULE (s. 4(3))

PRINCIPLES FOR EFFECTIVE COLLABORATIONBETWEEN THE GOVERNMENT AND PUBLICBENEFIT ORGANIZATIONS

PREAMBLE

The Representatives of the Government and PublicBenefit Organizations:

Desirous to further develop and strengthen the workingrelations between the two sectors;

Recognizing the importance of mutual co-existence and the


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need to work together for the posterity of the nation and

people of Kenya;

Aware of the necessity of complementary efforts of theGovernment and public benefits organizations for social,economic and cultural development;

Determined to strengthen collaboration, dialogue andrelations between the Government and public benefitorganizations;

Conscious that these principles only serve as a guide forengagement between the Government and public benefitorganizations who choose to work together;

Committed to principled collaboration;

Hereby agree to the following principles for collaboration toguide our collaborative work.

PART IOBJECTIVES

Objectives of

the principles.

1. The objectives of these principles for effectivecollaboration are to

(a) strengthen collaboration between theGovernment and civil society organizations;

(b)

reinforce complementary efforts of theGovernment and civil society organizationsand their contribution in enhancing thecountrys development;

(c) enhance the enabling environment for theachievement of joint development

programming of both sectors;

public benefit organization act 2013

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