KRA To Track Harambee Funds Under New Public Fundraising Appeals Bill, 2024

• The new Public Fundraising Appeals Bill, 2024, aims to regulate harambees in Kenya, including who can attend and the timelines for fundraising events
• The proposed law bars public and aspiring public officers from participating in harambees to prevent corruption and undue influence
• Fundraising organisers will need a permit and must declare contributions, detailing sources and expenditures, or face legal penalties, including imprisonment
• The bill introduces national and county-level oversight, with annual reporting to parliament and county assemblies on fundraising activities

Kenyans will be required to declare to the taxman the monies they receive from public fundraisers if a new bill currently before the Senate is passed.

The Public Fundraising Appeals Bill, 2024, sponsored by Senate Majority Leader Aaron Cheruiyot (Kericho), aims to replace the outdated Public Collections Act, Cap 106, which was enacted in 1960. According to Cheruiyot, the current law has been overtaken by events.

How proposed law will fight graft in Kenya

The new bill seeks to regulate how public harambees are conducted in the country by setting guidelines on who can attend and the permitted timeframes for these events.

The proposed law also aims to curb corruption by barring public servants from attending and contributing to public fundraisers.

"Harambee contributions are often used as a ticket for politicians to buy their way into public office, only for them to engage in corruption once elected," the bill states.

Adding:

"Appointed public officer shall not participate in a fundraising appeal during their term. A person intending to vie for public office shall not participate in a public fundraising appeal within three years preceding a general election. Violators of these provisions shall face a fine of up to five million shillings or commit an election offence."

The bill proposes the establishment of regulatory mechanisms for harambees at both national and county levels.

At the national level, the Cabinet Secretary responsible for social development will oversee the implementation of the bill and work with county executive committee members (CECs) to vet and issue permits for fundraising.

Both the Cabinet Secretary and CECs are required to present annual reports to Parliament and county assemblies on fundraising activities.

Requirements for issuance of harambee permits:

Before a permit is granted, applicants must provide:

1. Full names and addresses of the individual intending to conduct the harambee.
2. Purpose and necessity of the fundraising appeal.
3. Date and location of the event.
4. Names and contact details of those assisting in the appeal.
5. The amount intended to be raised and estimated expenses are as follows:
6. Statement on whether any prior funds have been received for the same cause.

Once permitted, contributors must declare the sources of their funds. Organisers are required to keep records of contributors, including names, bank details, and addresses, and provide statements on how the funds were spent, failing which they could face legal penalties.

"A person who commits an offence under this Act for which no penalty is prescribed is liable, on conviction, to a fine not exceeding two million shillings or imprisonment for up to three years, or both," the bill states.

Contributions received as a beneficiary or on behalf of a child must be declared in income tax returns.

However, the bill does not apply to private harambees where fundraising is limited to nuclear families or relatives.

Ruto's directive on public officers attending harambees

The bill's introduction follows President William Ruto's recent ban on public servants attending harambees as part of efforts to combat corruption.

The move came after he dismissed his entire cabinet in response to protests demanding accountability.

The first reading of the Public Fundraising Appeals Bill, 2024, took place on August 1, 2024, ahead of public participation.

The Standing Committee on Labour and Social Welfare is expected to submit its report to the Senate by September 1, 2024.