Principal Secretary for Internal Security, Raymond Omollo, has called for the need for stronger oversight and collaboration in Kenya’s non-profit sector to protect it from being used for money laundering and terrorism financing.

Speaking after visiting the Public Benefit Organisations Regulatory Authority (PBORA) headquarters, Omollo said the government is working closely with the authority to enhance regulation and ensure accountability within the sector.

“Our discussions centred on strengthening collaboration between government agencies and PBOs to promote good governance, curb money laundering, and enhance civil society’s contribution to national development,” he said.

The meeting, hosted by PBORA CEO Laxamana Kiptoo, reviewed progress in implementing the Public Benefit Organisations (PBO) Regulation, a framework designed to ensure transparency and compliance among thousands of registered non-profit entities operating across the country.

Promoting accountability and clean operations

Omollo commended PBORA for its role in safeguarding the non-profit sector, noting that while the organisations play a major role in supporting community development, they also face increased risk of exploitation by individuals seeking to channel illicit funds.

“I commended the Authority for safeguarding the non-profit sector against terrorism financing risks while emphasising transparency, accountability and effective regulation,” PS Omollo said in a statement.

He emphasised that effective oversight and regulation are not meant to frustrate the work of public benefit organisations but to protect them and ensure they continue contributing positively to Kenya’s growth.

According to the Financial Reporting Centre (FRC), non-profit organisations have been identified as potential targets for financial misuse, particularly in regions affected by conflict or poverty. The Centre notes that enforcing due diligence and transparency in the sector is vital in preventing the misuse of donor funds.

“The majority of the NPOs operating in Kenya are financed by donations from international sources. This exposure to international funds may exacerbate the vulnerability of the NPOs to abuse by terrorist organisations seeking an opportunity to plan and finance terrorist activities in the country,” FRC stated in a statement.

He said enhancing transparency and accountability will not only protect Kenya’s financial systems but also build investor confidence and attract more funding to community-based programs.

“Collaboration between government agencies and PBOs to promote good governance, curb money laundering and enhance civil society’s contribution to national development,” he said

Omollo reaffirmed the government’s commitment to supporting PBORA and other oversight bodies to maintain a clean, credible, and responsible non-profit ecosystem that supports Kenya’s economic and social development goals.