State to regulate fundraising if new bill enacted

The State will regulate and safeguard public fundraising from abuse if a new bill is enacted.

The Public Fundraising Appeals Bill, 2024 sponsored by Senate Majority leader Aaron Cheruiyot (Kericho), prohibits aspirants for political seats from participating in Harambees at least three years before a general election.

This even as the proposed law exempts tithes and offerings from the regulations, as they are not classified as fundraising appeals.

“Despite the provision of section 10, the following does not constitute a fundraising appeal for the purposes of this act. Money or property collected by or under the authority of a recognized representative of a religious association registered under the Societies Act for normal collections such as tithes and offerings or the purpose of carrying out developments or projects for the benefit of the association,” reads part of the Bill.

Political hopefuls

If enacted, the law will deal a blow to political hopefuls who use the platforms to anchor their bids and gain political grounds.
“A person who intends to vie for a public office shall not participate in a public fundraising appeal within three years preceding a general election,” the Bill reads in part.

The proposed law comes against the backdrop of public uproar over huge contributions made by politicians in public fundraising every weekend with some politicians contributing as high as Sh20 million in a single function, triggering uproar about the sources of money.

The Bill, which has been introduced in the Senate for first reading, states that all state officers and appointed public officers are prohibited from participating in Harambees during their term in office.

Soliciting or receiving any money or benefit from raffle, lottery or other activity authorized or permitted under the Betting, Lotteries and Gaming Act or any other relevant law is also exempted under the Bill.

The proposed law also permits private fundraising appeals where the drive is conducted by close family members to support their own.

“The Bill is developed against the need to maintain the altruistic rationale that public appeals (Harambees) serve in the Kenyan society while addressing the shortcomings that have accompanied this process,” the Bill reads in part.

Apart from acquiring a permit, the state shall vet the venue of the drive and the organizers and the organizer shall declare reasons for Harambee and the intended amount to be raised.

Financial report

According to the bill, the organizers shall file a financial report to the government every three months after the event with the state mandate to inspect the financial books of the beneficiaries of the appeals.

In addition, the contributors in the fundraising appeals must declare sources for the contribution in an apparent effort to curb graft.
“A person who receives funds as a beneficiary or for the benefit of a beneficiary who is a child pursuant to a fundraising appeal shall declare such contribution in the income tax returns submitted by such person pursuant to the Income Tax Act,” the Bill reads in part.

The bill provides that, to conduct a Harambee, one must apply and acquire a permit from the Cabinet Secretary in charge of Planning and Social Development, for an inter-county or national drive. The officer shall issue a permit after thorough scrutiny of the applications within 10 days of receipt of the application. For those limited to the boundaries of the counties, the county executive responsible for Planning and Social Development shall issue the permit.

“A person who intends to conduct a public fundraising appeal shall submit to the Cabinet Secretary or the respective county executive committee member, as the case may be, an application for a permit at least 14 days before the date for the conduct of the fundraising appeal,” the Bill says.

The application shall indicate the full name and address of the person intending to conduct the fundraising appeal, the purpose of the fundraising appeal and the necessity of conducting the drive.

They also indicate the date on which the fundraising is to be conducted, the names and contact details of the persons assisting in conducting the appeal and the amount intended to be raised.

An applicant who provides false and misleading information, shall, besides being denied a permit, be liable to an offence whose punishment is a Sh2 million fine, three years in jail or both.

The Bill also provides for urgent applications for a fundraiser, in which case, the period of issuance of a permit shall be shorter. “A Cabinet Secretary, county executive committee member or public officer shall not solicit or receive any inducement to process an application made under this Act or receive not receive any gift or favour from a person in respect of whom a permit is considered,” the Bill says. The Bill provides that not more than five cent of the target amount to be raised shall be utilized in defraying administrative expenses related to the fundraising appeal.