Not-So-Fast: The Public Benefits Organization Act and its Draft Regulations remain in limbo

Within a span of two months, May and June 2025, the legal framework governing the public benefits organisations (PBOs) in Kenya has seen significant changes. These changes are led by:

1. the High Court Decision in David Caleb Otieno & 2 others -versus- Attorney General & Others [2025] KEHC 8557 (KLR) [Otieno & 2 Others Case];
   
   
2. the extension of the compliance period for PBOs by the Cabinet Secretary for a further period of one (1) year, with effect from 14 May 2025 until 13 May 2026; and
   
   
3. the release of the draft Public Benefits Organization Regulations, 2025 for public consultation.
    

In this alert, we analyse the challenged PBO provisions, the High Court’s rulings, and share our perspective on the implications of these decisions.

KPMG is happy to assist on any issues arising from this alert. If you have any questions, please do not hesitate to reach out to our tax team on  taxandregulatory@kpmg.co.ke.