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Principal Secretary for Internal Security, Dr Raymond Omollo, has sent a directive to Non-Governmental Organisations (NGOs) with an appeal to identify their funding sources to curtail illicit financial flows.
The Annual NGO Sector report for the financial year 2021/2022 issued by Principal Secretary for Internal Security, Dr Raymond Omollo, indicated that the NGO sector in Kenya spent Ksh185.5 billion and a total of 71,096 people were employed by NGOs, contributing to the Kenyan economy of Ksh175.9 billion. However, on Monday, June 5, the government released a report that indicated only 3,005 of the 12,162 non-profit organisations registered their returns.
As Kenya intensified its efforts to curb illicit financial flows, Omollo asserted that the country now mandates NGOs to file annual returns and declare funding sources. In his comments, Omollo referred to the low compliance rates with the existing regulatory and legal frameworks as “unacceptable” and suggested that the perpetrators could be committing crimes, such as terrorism financing and money laundering.
“You must embrace transparency in your funding sources as well as expenditure. Your financial records should be an open testament to your integrity and reflect your dedication to ethical practices,” he said.
By affirming the values that underlie true service to humanity, Omollo encouraged the organisations to reciprocate and honour their obligations. “You, as the torchbearers of change, must reciprocate the trust bestowed upon you by ensuring total compliance with our legal and regulatory frameworks,” he added.
According to the report, Ksh118 billion of Ksh158.5 billion was allocated to project implementation, Ksh49.7 billion for employee benefits, Ksh18.4 billion for administrative costs, and Ksh4.4 billion for tangibles. Nonetheless, Kenya spent 102 billion (86%), and other countries spent 16 billion (8%).
As indicated in the report, there were 9,794 active organisations, representing 80% of the NGOs registered cumulatively with the NGO Board. Among the 12,162 NGOs registered by June 30, 2022, 2,468 have been terminated, 130 have been renewed, and 30 have been abolished. Over the period, 272 new organisations were registered (217 national and 55 international).
Over 28.8% of the donations were made by non-governmental organisations, and international organisations donated 27%. There were 66,687 employees (94%) based in Kenya, compared to 4,409 (6%) based outside of Kenya. According to the report, 31% of the funds received for Kenyan projects were used to implement health-related projects, followed by children with 10.4% and education with 10%.
In terms of funds utilisation for projects, 5 NGOs ranked highest, including GiveDirectly Kenya (Ksh6.6 billion), Compassion International Inc. (Ksh5.2 billion), World Vision Kenya (Ksh5.3 billion), Catholic Relief Services (Ksh3.5 billion), and Amref Health Africa In Kenya (Ksh4.6 billion). Among the sectors of operation surveyed, health represented 17.3% (164), relief accounted for 15.6% (148), and education accounted for 14.5% (137).
Additionally, Omollo encouraged the sectors to decentralise their operations to maximise the impact on communities through the extensive network of National Government Administration Officers (NGAOs).