The Public Fundraising Appeals Bill, 2024
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
State Officers Banned from Public Harambees
Section 13 prohibits State officers and appointed public officers from participating in or conducting public fundraising appeals. Additionally, political aspirants are barred from participating in public appeals within three years preceding a general election. Violating this provision constitutes an election offence and carries a fine of up to KSh 5 million.
New Licensing Regime for Public Appeals
Section 14 requires any individual or corporate entity to obtain a permit before conducting a public fundraising appeal. Applications must be submitted at least 14 days prior to the event to either the Cabinet Secretary (for national or multi-county appeals) or the respective County Executive Committee member (for county-level appeals).
5% Limit on Administrative Expenses
Under Section 31, no more than 5% of the targeted fundraising amount may be utilized to defray administrative expenses related to the appeal. Fundraisers must also maintain accurate records of all contributions, bank deposits, and expenditures under Section 32.
Mandatory Declaration of Contribution Sources
Section 36 introduces a new obligation requiring any person who makes a contribution to a public fundraising appeal to specify the source of their contribution. Beneficiaries receiving funds on behalf of a child must also declare the contributions in their income tax returns.
Bill No.
Senate Bills No. 36
Gazette No.
Supplement No. 133
Sponsor
AARON CHERUIYOT
Background
The Public Fundraising Appeals Bill, 2024 seeks to replace the Public Collections Act (Cap. 106). The current legal framework for public collections does not align with Kenya's devolved structures and is insufficient to address corruption tendencies associated with public fundraising (Harambees). The Bill introduces mechanisms to foster transparency, prevent fraudulent or coercive appeals, and regulate the involvement of public officers in philanthropic activities.
Key Amendments
- Repeal of Cap. 106: Section 46 formally repeals the Public Collections Act.
- Exclusion of Private Appeals: Section 8 clarifies that the strict regulatory provisions of the Act do not apply to private fundraising appeals confined to nuclear family members or relatives.
New Obligations
- Permit Requirement: Section 14 mandates that anyone conducting a public appeal must apply for and obtain a permit at least 14 days before the event.
- Record Keeping: Under Section 32, fundraising managers must maintain detailed records of all contributions, bank accounts, and expenditures. These summaries must be finalized within three months of the appeal's end (for appeals lasting six months or less) and submitted to the regulating authority within 30 days (Section 35).
- Source Declaration: Section 36 requires contributors to specify the source of their contributions.
- Administrative Expense Cap: Section 31 limits the funds utilized for administrative costs to a maximum of 5% of the targeted amount.
Penalties
- Public Officer Violations: Section 13 imposes a fine not exceeding KSh 5 million on any State officer, appointed public officer, or political aspirant who participates in or conducts a public fundraising appeal. For aspirants, participation within three years of a general election is classified as an election offence.
- General Penalty: Section 43 prescribes a fine of up to KSh 2 million, imprisonment for up to three years, or both for offences under the Act where no specific penalty is provided.
- Misappropriation of Funds: Section 40 designates the application of fundraising proceeds to unauthorized purposes as an offence.
Transitional Provisions
Section 47 establishes that any subsisting directions, certificates of authority, orders, and approvals issued under the repealed Public Collections Act (Cap. 106) remain valid and are deemed to have been issued under the new Act.
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