Internal Security Principal Secretary Dr Raymond Omollo has directed Non-Governmental Organisations (NGOs) to declare their source of funding even as the government heightens measures to curb illicit cash flows.
Speaking during the launch of the Annual NGO Sector Report for the financial year 2021/2022, Omollo revealed that the NGO sector in Kenya spent a total of Ksh185.5 billion during the financial year.
NGOs contributed Ksh175.9 billion to Kenya’s economy and employed 71,096 people in the financial year 2021/2022.
However, according to the report released on Monday, June 5, only 3,005 out of the 12,162 NGOs (30 per cent) registered in the country filed their returns.
Omollo said Kenya was now demanding transparency from NGOs to file their annual returns and declare sources of funding as the country heightens its vigilance against illicit financial flows.
Omollo described as “unacceptable” the low levels of compliance with the existing legal and regulatory frameworks, adding that it is enough reason to infer that the culprits are involved in shady activities, including terrorist financing.
“You must embrace transparency in your funding sources as well as expenditure. Your financial records should be an open testament to your integrity and reflect your dedication to ethical practices,” he said.
Omollo urged the organizations to reciprocate and honour their obligations as an affirmation of their commitment to the values that underpin the course of true service to humanity.
“You, as the torchbearers of change, must reciprocate the trust bestowed upon you by ensuring total compliance with our legal and regulatory frameworks,” he added.
The report indicated that out of the Ksh185.5 billion, Ksh118 billion was pumped into project implementation, Ksh49.7 billion for personnel emoluments, Ksh18.4 billion as administration costs and Ksh4.4 billion on tangible assets.
Ksh102 billion (86 per cent) of the total amount spent was spent in Kenya while the remaining Ksh16 billion in other countries.
The report also indicates that a total of 9,794 organizations were active, representing 80 per cent of NGOs cumulatively registered by the Board.
Out of the 12,162 NGOs that had been registered by June 30, 2022, some 2,468 have been de-registered, 130 re-instated and another 30 dissolved. During the period, 272 new organisations were registered (217 national and 55 international).
Most of the funds were donated by affiliates of the NGOs at 28.8 per cent and foreign government agencies at 27 per cent.
The majority of the employees, 66,687 (94 per cent), were stationed in Kenya compared to 4,409 (6 per cent) stationed outside the country.
The report further shows that 31 per cent of the money received was spent on implementing health-related projects in Kenya, followed by children at 10.4 per cent and education at 10 per cent.
Nairobi county had the highest number of project and programme implementers (1,192), followed by Kisumu with 421, Nakuru (385), and Kiambu (372).
Five leading international NGOs in the utilisation of funds on projects are GiveDirectly Kenya (Ksh6.6 billion), World Vision Kenya (Ksh5.3 billion), Compassion International Inc. (Ksh5.2 billion), Amref Health Africa In Kenya (Ksh4.6 billion) and Catholic Relief Services (Ksh3.5 billion).
According to the report, health was the most preferred sector of operation at 17.3 per cent (164), followed by Relief at 15.6 per cent (148) and Education at 14.5 per cent (137).
PS Omollo also encouraged them to leverage the wide network presented by National Government Administration Officers (NGAOs) to decentralize their operations to the grassroots for maximum impact on the communities they serve.