NGOs Invest Sh197.9 Billion in Kenyan Economy

Non-Governmental Organizations (NGOs) have injected Sh197.9 billion into the Kenyan economy this year, marking a Sh12.4 billion increase from the previous year. This significant contribution was announced by Interior Principal Secretary Raymond Omollo at the Kenyatta International Convention Centre (KICC) during the launch of a report coinciding with the kickoff of NGOs Week 2024, themed “Building Synergy for a Sustainable Future.”

Key Highlights from the Report

• Economic Contribution: NGOs have contributed Sh197.9 billion to Kenya’s economy, a notable increase from the previous year’s investment.
• Development Role: PS Omollo commended the NGOs for their essential role in sustainable development and addressing social challenges. He highlighted their collaboration with National Government Administrative Officers (NGAOs) in providing relief during recent floods.

Reporting Compliance Concerns

• Compliance Issues: Only 2,828 out of 12,000 registered NGOs filed their annual reports as mandated by law. This low compliance rate hampers the ability to fully understand the sector’s economic impact.
• Directive for Action: PS Omollo instructed the PBO Authority to take action against non-compliant NGOs, including possible deregistration, to ensure transparency and accountability.

Government and NGO Sector Collaboration

• Enabling Environment: The government remains committed to supporting NGOs through the implementation of the PBO Act, which aims to improve transparency, accountability, and efficiency in the sector.
• PBO Authority’s Role: Mwambu Mabongah, Chair of the PBO Authority, called on NGOs to enhance their efforts in supporting underprivileged communities and stressed the importance of NGOs being “good neighbors.”

Strategic Goals and Future Actions

• Policy and Legal Framework: The PBO Authority is set to work with stakeholders to implement a new legal framework and provide policy guidance to align NGO programs with Kenya’s national development plan and the Bottom-up Economic Transformation Agenda.
• Focus on Collaboration: The ongoing NGOs Week 2024 emphasizes the critical role of collaboration, transparency, and adherence to regulations to maximize the sector’s positive impact on Kenya’s economy and social welfare.

The launch of the report and the events of NGOs Week 2024 underscore the substantial contribution of NGOs to Kenya’s development and the need for continued collaboration and compliance to enhance their effectiveness and reach.