REGISTRATION AND COMPLIANCE BY NGOS: PRESENTATION TO ICPK HENRY O OCHIDO

Content 1. Introduction 2. Place of NPOs in the Modern State 3. Legal and Policy Basis 4. Rationale for Regulation 5. Registration 6. Regulation 7. Compliance

INTRODUCTION NPOs that operate for public benefit in Kenya can be registered as : 1. NGOs under the NGOs Coordination Act, Trusts under the Trustees(Perpetual)Succession Act 3. Companies Limited by Guarantee Cap Societies Act Cap 108 This presentation is limited to the NGOs Act

Place of NPOs in the Modern State NPOs part of civil society Modern society divided into three basic sectors—the state, business and a third sector defined by citizen’s self-organization. The state’s distinctive competence is the legitimate use of coercion; the business sector’s competence is market exchange; and the third sector’s competence is private choice for public good.

Legal and Policy Basis for NPOs Article 36 of the Constitution provides for freedom of association and affirms individuals’ right to form, join or participate in the activities of any association of any kind Sessional Paper No. 1 of 2006 provides the policy framework for NGO operations

Rationale for Regulation by the State By facilitating involvement of charities in public service provision, it would otherwise be obliged to fund, it gets good value to compensate for lost taxes The state has a protective role in respect of donors and charities to prevent abuse The state because it foregoes taxation and the right to prescribe social causes to which NGOs should subscribe has a definite stake in the gift relationship

Registration under the NGOs Act confers legal personality and Public Benefit status to NGOs

Registration Requirements: Name reservation Form 3 Form 2 Constitutive Document Application Letter

Regulation NGOs Act 1990 NGOs Regulations 1992 Terms and Conditions Attached to the Certificate of Registration NGOs Constitutive Document Code of Conduct, 1992

Compliance Separation of governance and management Seek authority for actions that need regulatory authority -Bank opening -Changes to officials -Changes to Name -Dissolution Submit annual reports

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