Challenges and opportunities for Kenya's Not for Profit sector

At the core of Kenya's socio-economic landscape lies a dynamic and expanding sector - the Not-for-Profit Organisations (NPO). Comprising a diverse array of entities such as Non Governmental Organisations (NGOs), Civil Society Organisations (CSOs), trade unions, trustees, self-help groups, and private foundations making it a crucial driver of Kenya's progress.

Over the past three decades, Kenya has witnessed an unprecedented surge in the number and activities of these organizations, driven by their ability to pool resources effectively. In the recently published Annual NGO Sector Report for the year 2021/2022, the sector contributed a staggering KES 175.9 billion to the economy, a figure that could be even higher if compliance with annual reporting was more widespread. This leads to the question: Is the NPO sector operating at its full potential?

Kenya's NPOs, both local and international, have made substantial contributions to the country's socio-economic development. Beyond the inflow of vital foreign currency, these organizations have offered direct and indirect employment opportunities to thousands of Kenyans. Moreover, they provide training, internships, and volunteer programs, thereby equipping our well-educated youth with the skills and experience needed in the job market. According to the sector report, in the financial year 2021/22, the sector employed 71,096 individuals.

Perhaps one of the sector's most significant achievements is its role in improving the welfare of Kenya's underprivileged population. Operating at the grassroots level, these organizations deliver tangible impacts where they are most needed. As highlighted in the sector report, the top three sectors favored by NGOs in 2021/2022 were health, children, and education, all with a direct impact on citizens' lives.

Their interventions have yielded notable outcomes, including reduced infant mortality rates, improved maternal and child health, enhanced reproductive health, and the prevention of communicable diseases. In education, NGOs have supported research, scholarships, and sponsorships for basic and higher education, among other programs. Various initiatives targeting vulnerable children have been implemented in the realm of children's welfare. These initiatives encompass mentorship, advocacy for child-friendly policies, feeding programs, human rights advocacy, and the provision of basic needs.

Civil Society Organisations (CSOs) have played a vital role in addressing human rights, land tenure, and environmental issues. They have given a voice to the marginalized and aggrieved, leading to the resolution of many long-standing grievances. Through intensive civic education campaigns, these organizations have heightened citizens' awareness of their civil rights. Another noteworthy achievement is the provision of free or affordable legal representation in a country where legal costs are often prohibitive.

Despite these remarkable accomplishments, Kenya's NPO sector faces challenges that hinder it from reaching its full potential. As the sector's impact continues to expand, it is imperative that supportive legislation be enacted to facilitate its operations. The Public Benefits Organizations (PBO) Act, passed into law in 2013, was meant to fulfil this need. It aimed to establish transparent and efficient regulation of civil space in Kenya, with clear rules on registration and incentives for organizations engaged in public benefit activities. However, despite being aligned to the 2010 Constitution of Kenya and international standards on freedom of association, the PBO Act has yet to be operationalized. Currently, the regulation of non-governmental organizations in Kenya falls under the NGO Coordination Act of 1990 which is a framework that may not be able to address the evolving needs and current challenges faced by the sector, hence a heightened need to operationalize the PBO. This is also at the backdrop of some development partners appearing to be reluctant to support the sector until this legal framework is operationalized…

Encouragingly, the commitment of the ruling political party to operationalize the PBO Act, as outlined in its manifesto under "Governance: Strengthening Leadership Accountability and Depersonalizing Politics," is a positive sign.

The Not-for-Profit Organisations (NPO) sector in Kenya cannot be underestimated. Its contributions to the economy, job market, and the welfare of the underprivileged are undeniable. To harness this vast resource, the government needs to create a more conducive legal and regulatory environment for the sector's smooth operation. This action will ensure that Kenya maintains its position as the preferred base for international NGOs in the region, further cementing its role as a powerhouse of social and economic development