THE PUBLIC FUNDRAISING APPEALS BILL, 2024
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Mandatory Permits Required for Public Harambees
Under the Bill, any person intending to conduct a public fundraising appeal must apply for and obtain a permit at least 14 days before the scheduled event. Applications must be submitted to the Cabinet Secretary for national or multi-county appeals, or to the respective County Executive Committee Member for county-specific appeals, with permits issued within 10 days of receipt.
Ban on Public Officers Participating in Fundraising Appeals
State officers and appointed public officers are prohibited from participating in or conducting public fundraising appeals during their term. Additionally, individuals intending to run for public office are barred from participating in public appeals within three years preceding a general election, with violations classified as election offences.
Strict Penalties and Fines of up to KSh 5 Million
Public officers who contravene the fundraising restrictions face a fine not exceeding KSh 5 million. For other general offences under the Act where no specific penalty is prescribed, offenders face a fine of up to KSh 2 million, imprisonment for up to three years, or both.
Capped Administrative Expenses and Record Keeping
The Bill caps administrative expenditures for public appeals at a maximum of 5% of the targeted amount. Organizers must also keep detailed financial records—including contributor identities, bank details, and distribution of funds—and contributors must declare the source of their donations.
Bill No.
No. 36 of 2024
Gazette No.
—
Sponsor
Senate Majority Leader
Background
The original spirit of Harambee in Kenya was based on voluntary communal contributions. However, the practice has increasingly been associated with corruption, where public officials solicit donations for private means or use public fundraising appeals to secure political influence. The current legal framework, regulated under the Public Collections Act (Cap. 106) enacted in 1960, is outdated, does not align with Kenya's devolved governance structures, and fails to address modern corruption tendencies. It also excludes charitable and religious purposes, which constitute a large component of harambees. The Public Fundraising Appeals Bill, 2024 seeks to repeal and replace Cap. 106 to promote transparency and accountability.
Key Amendments
- Repeal of Cap. 106: The Bill completely repeals the Public Collections Act (Cap. 106).
- Devolved Regulatory Architecture: Distributes oversight of fundraising appeals between the Cabinet Secretary responsible for social development (for national or multi-county appeals) and County Executive Committee (CEC) members (for intra-county appeals).
- Exemption of Normal Religious and Private Activities: Clarifies that private fundraising within nuclear families, normal religious collections (like tithes and offerings under the Societies Act), and activities authorized under the Betting, Lotteries and Gaming Act do not constitute fundraising appeals under this law.
New Obligations
- Permit Application: Organizers must apply for a permit at least 14 days before conducting a public fundraising appeal, providing details such as the purpose, target amount, estimated expenses, and expected timeframe.
- Administrative Expenditure Cap: Not more than 5% of the targeted fundraising amount may be used to defray administrative expenses.
- Declaration of Sources: Anyone making a contribution to a fundraising appeal must specify the source of the contribution.
- Tax Declarations for Minor Beneficiaries: Receivers of fundraising proceeds on behalf of a child beneficiary must declare the contribution in their income tax returns pursuant to the Income Tax Act.
- Financial Record Keeping: Organizers must maintain meticulous records, including details of contributors and their individual amounts, bank accounts where funds were deposited, and comprehensive listings of all expenditures and assets received.
Penalties
- State and Public Officers: Any State officer or appointed public officer who participates in or conducts a public fundraising appeal during their term is liable to a fine not exceeding KSh 5 million.
- Aspirants for Public Office: Any individual intending to run for public office who participates in a public fundraising appeal within three years preceding a general election commits an election offence.
- General Penalty: Any person committing an offence under this Act for which no specific penalty is prescribed is liable to a fine not exceeding KSh 2 million, imprisonment for a term not exceeding three years, or both.
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