Close to 8,000 Non-Governmental Organizations (NGOs) risk closure for failing to remit their financial statements to the government.
During the NGOs’ Annual General Meeting (AGM) on Wednesday in Nairobi, Mutuma Nkanata, Executive Director of the NGOs Coordination Board, stated that he had issued a 21-day ultimatum on December 14, 2023, which was still effective.
He expressed his disappointment over the non-compliance by the NGOs and warned that organisations would face disciplinary actions if they failed to meet the deadline set for January 8, 2024.
NGOs attending a training in Nakuru on September 21,2023
NGOs Board Kenya
“We have about 8,000 who haven’t submitted their returns. If they do not do that, we are going to deregister them and strike them out of our register,” Nkanata affirmed.
“What we are telling the NGOs is that those who have not complied, should do so per our regulations, submit their annual returns, update their offices. They should also tell us what they’re doing, and submit reports about their programs.”
On the other hand, the NGO boss added that the government would close all bank accounts for the organisations that fail to comply with the directive.
The NGO Coordinating Board whose main role is to regulate and enable the NGO sector had issued a notice to its members in a bid to streamline and bring about accountability to the sector.
In its earlier notice, the board clarified that all NGOs are required to file their annual reports (returns) and audited financial statements where applicable by the end of the financial year.
Additionally, the report explained that NGOs whose financial year ended September 30, 2023, are required to file Annual Reports and audited financial statements by December 31, 2023, which will also apply to other quarters of the year.
“The Annual reports and audited financial statements where applicable must be filed irrespective of whether the NGO has been active or dominant,” read the initial report.
A notice to NGOs remitting their financial statement on December 15, 2023