Regulatory authority forwards five NGO fraud cases to DCI, warns Kenyans against scams

The Public Benefit Organisations (PBO) Regulatory Authority has raised concerns over significant illegal activities conducted by some registered PBOs, including defrauding unsuspecting Kenyans.

In a statement on Wednesday, the Authority said it has referred five cases of fraud to the Directorate of Criminal Investigations (DCI) and is currently probing nine additional organisations for issues related to fund mismanagement, poor governance, and embezzlement.

"The Authority is concerned about the existence of serious cases involving registered PBOs who have engaged in illegal activities such as procurement fraud and obtaining money from Kenyans under false pretences," the Authority stated.

It further urged the public, business community, private sector, and donor community to be vigilant when engaging with non-governmental organisations (NGOs).

Stakeholders were also advised to conduct a file search with the authority before entering into partnerships or providing funding to ensure due diligence.

“Before entering into any partnerships or providing funding, stakeholders are encouraged to perform a file search with the authority,” the authority said.

The move follows a similar action in July when the PBO Authority forwarded files to the DCI, initiating an investigation into NGOs operating in the country. The probe targeted 16 NGOs suspected of receiving foreign funding to support anti-government protests.

According to Mwambu Mabonga, the Authority’s chairperson, only three of these NGOs were properly registered with both the Registrar of Societies and Companies, despite reports of receiving substantial funds from the Ford Foundation.

He added that some people receive millions of projects without a single one.

The investigation was also fuelled by a letter from Foreign Affairs Principal Secretary Korir Sing' Oei to Ford Foundation President Darren Walker, which alleged that it was finding certain NGOs to sponsor anti-government protests that resulted in several deaths and hundreds of injuries. The Ford Foundation, however, denied any involvement, asserting that it maintains full transparency in all its activities.

The PBO Authority warned that any organisation found culpable will face legal consequences, stressing that all entities involved in public benefit activities in Kenya must either obtain public benefit status or register with the Authority and submit annual audited financial records.