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SPECIAL ISSTIE Kenya Gazette Supplement No.99 (Senate Bills No.28) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT SENATE BILLS, 2014 NAIROBI, 27 th June, 2014 CONTENT Bill for Intoduction into the Senate- PAGE The Public Fundraising Appeals Bill, 2014..... -.............467 eugntlL fsn LAlt REP0RTIIIG RHC EIVEN CI e $.tlF ?CI14 S.0, EPx 10{49'S$tS0 NAiROBI, I{ENYA PR]NTM AND PI,JBLISHED BY TIIE GOVERNMBNT PRINTER, NAIROBI

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Page 1: KENYA GAZETTE SUPPLEMENTkenyalaw.org/kl/fileadmin/pdfdownloads/bills/2014/PublicFundraising... · The Public Fundraising Appeals Bill,2014 PART IV.FUNDRAISING APPEALS 21 -Classification

SPECIAL ISSTIE

Kenya Gazette Supplement No.99 (Senate Bills No.28)

REPUBLIC OF KENYA

KENYA GAZETTE SUPPLEMENT

SENATE BILLS, 2014

NAIROBI, 27 th June, 2014

CONTENT

Bill for Intoduction into the Senate-

PAGE

The Public Fundraising Appeals Bill, 2014..... -.............467

eugntlL fsn LAlt REP0RTIIIG

RHC EIVENCI e $.tlF ?CI14

S.0, EPx 10{49'S$tS0NAiROBI, I{ENYA

PR]NTM AND PI,JBLISHED BY TIIE GOVERNMBNT PRINTER, NAIROBI

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467

TITE PUBLIC FT]I{DRAISING APPEALS BTLL,aOIA

ARRANGEMENT OF' CLAUSESClause

PART I - PRELIMINARY

1 -Short title.

2-Interpretation.

3-Object and purposes of the Act.

PART tr - ESTABLISHMENT OF PUBLICFT]NDRAISING APPEALS CONII\,IITTEE

4-Establishment of the Public Fundraising AppealsCommittee.

S-Functions of the Committee.

6- Powers of the National Committee.

7-Vacation of office of memrber.

S-Delegation by the Committee.

9-Conduct of affairs of the business of the Committee

10-Reports of the Comrnittee.

11-Secretariat.

l2-Functions of the seuretmiat.

PART III - COUNTY E;"tII{DRAI$ING APP.EALScoffiffix-Gffi

1 3 - County fundraising appeals committees.

14 - Terms and conditions, of serviee.

15 - Qualifications for appointment as chairperson.

1 6 - Functions of county cornrnittees.

17-Powers of county comrniffees,

18-Vacancy.

1 9 - Revenue and expenditure: of the committees.

2O-Reports of the county committees.

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The Public Fundraising Appeals Bill,2014

PART IV.FUNDRAISING APPEALS

21 -Classification of fundraising appeals.

Z2-Conduct of fundraising appeals.

23-Exemptions.

24-Non-application of Part to private fundraising appeals.

25-Persons who may conduct a fundraising appeal.

26-Application for a licence.

27 - U r gent applic ations.

28 - Consideration of application.

29 - Inducements to committees.

30 -Requirement for consent.

3I -Issuance of licence.

32 -Duration of licence.

33-Refusal to issue a licence.

34-Conditions of issuance of a licence.

35-Grounds for cancellation of a licence.

36 - Notice of non-compliance.

37-Revocation of a licence.

38-Duties of a fundraiser on revocation.

39 - Application for review.

40-Register of licensed fundraising appeals.

41 -Alteration of register.

42-False statements.

43-Receipts.

44 - Maximum expenditure.

PART V.RECORDS AND ACCOT]NTS OF AFI]NDRAISING APPEAL

45-Financial records of a fundraising appeal.

46-Other records relating to a fundraising appeal.

47-Storage of records.

48-Duty to provide reports and information.

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The Public Fundraising Appeals Bill,2014 469

49-Inspectors.

50 - Conduct of inspections.

51-False information in conducting a fundraisingappeal.

PART VI - MISCELLANEOUS PROVISIONS

52 - Non-money Bill status.

53-Tax incentives.

54 - Decentralisation of services.

55 - Social development funds.

56-General penalty.

57-Regulations.

58-Extension of time.

S9-Prohibition of receipt of gifts.

60-Repeal of Cap. 106

6 1 - Transitional provisions.

SCHEDULE-PROVISIONS AS TO TIIECOI\DUCT OF BUSII{ESS AND AIIFAIRS OF

THE COMMITTEE AND COT,]NTYCOMMITTEES

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470 The Public Fundraising Appeals Bill,2014

TIIE PUBLTC FITNDRATSING APPEALS BrLL,20t4

A Bill for

AN ACT of Parliament to provide for theestablishment of regulatory mechanisms at thenational and eounty levels wldch oversee theconduct of fiudraising appeals; to provide forthe licensing and regulation of fundraisers; thepromotion of transparency and accountahility tnthe carrying out of fundraising appeals to fostergreater philanthropy and for connectedpurposes.

ENACTED by the Parliament of Kenya, as follows-

PART I _ PRELIMINARY

1. This Act may be cited as the Public FundraisingAppeals Act,2014.

2. In this Act unless the context otherwiserequires-

"beneficiary", in relation to a fundraising appeal,means -

(a) any person, class of persons or cause listed as

beneficiary by the person conducting the appealwhen applying for registration; or

(b) any person who is acting on behalf of such aperson, cause orclass ofpersons;

"Cabinet Secretary" means the Cabinet Secretary forthe time being responsible for matters relating to planningand social development;

"county executive committee member" means thecounty executive committee member in each county forthe time being responsible for matters relating to planningand social development;

"county register" means the register which a countycommittee is required to keep under section 40;

Short title

Interpretation

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The Public Fundraising Appeals &iil,2A14 471

"county committee" moans the County FundraisingAppeals Committee established in each county undersection 12;

"fundraising appeal" has the meaaing assigned to itunder section 20;

"fundraising managern' rnean$ a person who islicensed under section 31 to conduct a fundraising appealand who has the managerial or financial responsibilify inrelation to the appeal;

"National Committee" means the Publip FundraisingAppeals Committee ostablished undor section 4;

"national register" means the register which tlreNational Committee is required to keep under section 4O;

"person" includes a company, associafion or gtherbody of persons whether incorporated ot unincorporated;

"relevant committee" means the National Committeeor a county committee.

3. The objects and purposes of this Act are to -(a) provide a structured process for conducting

fundraising appeals and for making contributionsin relation to an appeal;

(b) provide a regulatory framework for transpareucyand accountability in the conduct of fundraisingappeals;

(c) ensure that the public has sufficient information tomake informed decisions in making voluntarycontributions in ascordance with thie Act;

(d) protect the public from fraudulent, misleading andcoercive fundraising appeals ;

(e) provido a framework for the establishment ofsocial development funds and such other fundsand invesfinents that nray provide sustainedincomes for the benefit of the prrblic;

Object andpurBoces ofthpA,CL

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472 The Public Fundraising Appeals Bill,2014

(f) establish a framework of standards for personsand entities involved in the conduct of fundraisingappeals; and

(g) provide a platform for the provision of fiscalincentives as a means of encouraging donationsand voluntary contributions in relation tofundraising appeals.

PART II. ESTABLISHMENT OF PUBLICFT]I\DRAISING APPEALS COMITIITIEE

4. (1) There is established a body to be known as thePublic Fundraising Appeals Committee which shall consistof-

(a) the Principal Secretary for the time beingresponsible for planning and social developmentor a person deputed by him or her in writing;

(b) two persons not being public officers, who haveknowledge and experience in social developmentand philanthropy, appointed by the CabinetSecretary by notice in the Gaz,ette;

(c) one person nominated by the Council of CountyGovernors established under section 19 of theInter-Governmental Relations Act;

(d) one person nominated by the Public BenefitsOrganisations Regulatory Authority establishedunder section 34 of the Public BenefitsOrganisation Act; and

(e) the Director appointed under section 10, whoshall be the secretary to the National Committee.

(2) The persons under subsections (lxb), (c) and (d)shall hold office for a term of three years renewable forone further term.

(3) A person shall be qualified for appointment undersubsection (1)(b) ifthatperson -

(a) holds a degree from a university recognised inKenya; and

Establishment ofthe PublicFundraisingAppealsCommittee.

No.2 of2012.

No. 18 of2013,

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The Public Fundraising Appeals Bill,2014 473

(b) meets the requirements of Chapter Six of theConstitution.

(4) The members of the National Committee shall bepaid such allowances as the Cabinet Secretary shalldetermine in consultation with the Salaries andRemuneration Commission.

5. The functions of the National Committee are to -(a) collaborate with and oversee the county

committees in the performance of their functionsunder this Act;

(b) oversee the conduct offundraising appeals;

(c) receive, vet and process applications for theissuance of a licence to conduct a publicfundraising appeal where such appeal is a nationalappeal or is publicly made to members of thepublic in more than one county;

(d) investigate any complaints, misuse of funds raisedthrough a fundraising appeal or any issue relatingto the conduct of a fundraising appeals under thisAct;

(e) conduct inspections of records and audits relatingto fundraising appeals conducted under this Act;

(0 maintain a national register of persons licensed byit to conduct a public fundraising appeal underparagraph (c);

(g) establish mechanisms for the promotion oftransparency and accountability in the conduct offundraising appeals under this Act;

(h) carry out sensitization and education awarenessregarding the conduct of fundraising appeals andthe promotion of transparency and accountabilityin the conduct of fundraising appeals;

(i) promote the establishment of endowment fundsand such other funds and investments that mayprovide sustained incomes for the benefit of thepublic;

Functions oftheCommittee.

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The Public Fundraising Appeats Bill,2014

C) monitor ttle implementation of, and enforce theprcvisioss of, this Act; and

(k) pertorm suah other ftmctions as may be necessaryfor ttle irnplementation of the provisions of thisAct.

6. Ttle Nationel eomrniuee shall have all the powersnecessary fb the propr discharge of its functions undertlris Aet and rvithout prejudice to the generality of theforegoing, shall hav,e the power to -

(a) require any info.rmation fr,om any personcondueting or irrtending to conduct a fundraisingappel under this Act;

(b) require at ary time" before the issuance of aIicence and at any time after being issued with aIicence, such inforur&tion a$ it may considernecessmy; and

(c) rnonitor the complianee, by persons licensedunder this Act, of the provisions of this Aqt.

7. (1) The office of a member of the NationalCommittee appointed under section 4 (1Xb) and (c) shallbecome vacant if the member -

(a) is adftdged baukr-upt;

(b) is qpnvicted of a criminal offence and sentencedto a term of imprisonment of noJ less than sixmonths;

(c) is convicted of an offence involving fraud ordishonosty;

(d) is absent, without reasonable cause, from threeconsecutive meetings of the National Committee;

(e) resigns in writing addressed to the CabinetSecretary;

(0 is removed from office by the Cabinet Secretaryfor-

Fowers oftheNati,onalCommittee.

Vacation of officeof member.

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The Fublic Futdraising Appeals Bill,2014 4?5

(i) being unable to perform the functions of hisor her office by reason of rnental or physicalinfirmity; or

(ii) failing to declare his or trer interest in anymatter being considered or tc be consideredby the Committee; or

(g) dies.

(2) Before the removal of a nrernber urxter subsection(1X0, tlre Cabinet Secreary shall appiat aa ad hoacommittee to -

(a) investigate the circurnsUnces givrng rise to theproposed removal; and

(b) make recommeadations on whedrer u rct tlremember should be rcnroved fronr sfflco.

(3) An ad hoc comrnittee appointrd under subsection(2) shall, in the discharge of its furctions, cbserve *re rulesof naturaljustice.

8. (l) The National esrnmiue may establish suchsub-committees as it may coaside,t necessary for tre betrerperformance of its functions and the exercise of its powemunder this Act.

(2) Tho Nationatr Committee mey co-opt to sit in asub-committee establishd uuder subseetion (l), suchpersons whose knowldge aad skills are fouRd ne(Essaryfor the perforrnance sf the ftiactions of the committee"

(3) The National Committoe ma5 by resolution eithqgenerally or in any particuler case, delegats to any sub-committee or to any member, officer, €mployet, or agentofthe National Committm, tln Exereise of any of the powersor the performance of any of ttre functions of the NationalCorunittee under this Act or under any other written law.

9. (1) Subject to suhseotioa (2), trs busineus andaffairs of the National f-ommiuee shall be conducted iaaccordance with the Schedule.

Ddega{rebylhpN&elComni{tee.

C0{ndsrtsf atra*rsof fubusisess of&eComkis$e,

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The Public Fundraising Appeals Bill,2014

(2) Except as provided in the Schedule, the NationalCommittee may regulate its own procedure.

10. (l) The National Committee shall not later thanthree months after the end of each financial year prepareand submit to the Cabinet Secretary a report on itsactivities in the immediately preceding year, and theCabinet Secretary shall, as soon as may be practicable,after receiving the report, cause copies of the report to belaid before the Parliament.

(2) A report prepared under subsection (l) shallcontain a comprehensive statement of the monetary valueof all the donations received by beneficiaries in the entirecountry through fundraising activities.

11. (1) The Cabinet Secretary shall designate anappropriate department within the Ministry responsible forplanning and social development to serve as the Secretariatof the National Committee.

(2) The Secretariat shall consist of -(a) the Director appointed by the Public Service

Commission who is responsible for mattersrelating to community development within theMinistry; and

(b) such public officers within the Ministry as theCabinet Secretary may assign and whom theCabinet Secretary shall consider necessary for theproper performance of the functions of thesecretariat under this Act.

Reports of theCommittee.

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The Public Fundraising Appeals Bill,2014 477

12. The functions of the Secretariat shall be to -(a) provide technical and administrative services to

the National Committee;

(b) implement, the decisions, strategies andprograrnmes of the National Committee;

(c) recommend proposals and offer advice to theNational Committee for the formulation andimplementation of programmes of the NationalCommittee; and

(d) perform such other functions as may be assignedto it by the National Committee.

PART III _ COI'NTY FI.]ITDRAISINGAPPEALS COMIVtrTTEES

13. (1) There is established in each county, a CountyFundraising Appeals Committee which shall work inconsultation with the National Committee.

(2) Each county committee shall consist of -(a) one person designated by the county executive

committee member to be appointed by theGovernor and who shall be the chairperson to thecommittee;

(b) three persons representing community interestsappointed by the Governor; and

(c) one ex-officio member nominated by the NationalCommittee

(3) The persons under subsection (2> shall beappointed by the Governor, with the approval of thecounty assembly, by notice in the Gazette for a term ofthree years renewable for one further term.

(4) The members of the county committee undersubsection (2) shall appoint from amongst their number, amember who shall serve as the secretary to the countycommittee.

Functions ofthesecrctariat.

Countyfundraisingappealscommittees.

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418 Tfu Public Fundraising Appeals Bill,2014

(5) The business and affairs of fhe county committeesshall be conducted in accordance with the Schedule.

(6) Except ae provided in the Schedule, the countycanrrnittee$ may rcgalate tlrci.r own procedure$.

14. The urembers of the county committees shall bepaid such allowarces as the courty executive commiffeenwfirkr in the coffity shall, ir consultation with theSalaries and Remuneration Comrrrission, determine.

15. (1) A persor shall be qualified fu appointrnent as

the chairperson to a county commicee if the person -(a) has a degree f,rom a university or equivalent

professioral qualifieation from an institutianrecognised in Kenya;

(b) has knowledge and at least ten yea experience inmatfers relating to public administration andsocial &velo,pnent; ald

(e) rneets the requiremects of Chapter Six of theConstiftrtian.

(2, A persorr shall be qualified for appointrnent as anrcmber to the cfimry corrufiittec if such Frsotr -

(a) has a wconduy school qualification or equivalentqualification from an institution recognised inKenya;

(b) has knowledge and at least three year experiencein maffers relating to finance or publicadministration; and

(c) meets thc requiremerts of Chapter Six of theConetitution.

16. (1) The functions of the county committees shallbeto *

(a) receive, vet and process applications for theissuance of a licenee to conduct a publicfundraising appeal within the eounty;

Terms andconditions ofservice.

Qualifications fotappoiatrrent as

chairperson.

Rrncrioff ofcountycomnrittees,

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The Public Fundraising Appeals Bill,2014 479

(b) regulatesws the conduct of fundraising appealswithin the county;

(c) investigate any complaints, misuse of funds raisedthrough a fundraising appeal or any issue relatingto the conduct of a fundraising appeal under thisAct within the county;

(d) carry out inspections of records and auditsrelating to a fundraising appeal conducted underthis Act;

(e) maintain a register of all licenses issued to aperson conducting a fundraising appeal under thisAct;

(f) monitor and evaluate the conduct of fundraisingappeals within the county; and

(g) perform such other functions as may be necessaryfor the implementation of this Act.

17. The county committees shall have all the powersnecessary for the proper discharge of their functions underthis Act and without prejudice to the generality of theforegoing, shall have the power to -

(a) oversee the conduct offundraising appeals carriedout under this Act within the county;

(b) require any information from any personconducting or intending to conduct a fundraisiagappeal under this Act;

(c) require at any time, bef,ore the issuance of alicence and at any time after being issued with alicence such inforrnation as it rnay considernecessary; and

(d) monitor the compliance, by persons licensedunder this Act, of the provisions of this AcL

18. (l) The office of a member of the couutycommittee appointed under section 13 shall become vacantif the member -

Powers ofcountycommittees.

Vacancy.

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-lr:- I

480 The Publlc Fundralslng ,\ppeals Btll,2014

(a) is adjudged bankrupt;

(b) is convicted of a criminal offenee and sentencedto a term of imprisonmcnt of not lecs than sixmonths;

(c) is convicted of an offense involving ftaud ordishonesty;

(d) is absent, without reasonable causp, from throeconsecutive meetings of the committee;

(e) resigns in writing addressed to the Governor;

(f) is removed from office by the Governor for -::

($p"being unable to perform the functione of hiso.:.,-,.office by rcason of mentd or physicali*,,infrmity; or

(ii) failing to declare his interest in any matterbeing considered or to be sonsidered by thecommittee; or

(g) dies.

(2) Before the removal of a member under subsection

9(D,the Governor shall appoint an ad hoc committee to

(a) investigate the circumstances giving rise to theproposed removal; and

(b) make recommendations on whether or not themember should be removed from office.

(3) An ad hoc committee appointed under subsection(2) shall, in the discharge of its functions, otserve the rulesand natural justice.

19. (1) The expenses of a county committee shall bedefrayed out of moneys that may, in the future, beprovided by the county assembly for that purpo$e.

Revenue andexpenditure ofthecommittees.

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The Public Fundraising Appeals Bill,2014 48r

(2) All fees and other moneys received by a countycommittee shall be paid into the Revenue Fund.

20. (l) Every county committee shall submit-

(a) a quarterly report to the county executivecommittee member,; and

(b) an annual report, to the National Committee,

of its activities in the prescribed manner together withits financial records in such manner as the countyexecutive committee member and the National Committeemay specify.

(2) The county executive committee member shallsubmit copies of the quarterly report submitted to him orher under subsection (1Xa) to the County Assembly.

(3) Each County Assembly shall consider the reportsubmitted to it under subsection (2) and submit a copy ofthe report to the Senate within three months of receipt ofthe report.

PART TV_FIJNDRAISING APPEALS

2L. Fundraising appeals shall be classified as -(a) public fundraising appeals which shall consist of

solicitations made by a fundraising manager tomembers of the public or a section of the publicfor a public benefit and which shall be licensed assuch under this Act;

(b) public fundraising appeals which shall consist ofsolicitations made by a fundraising manager tomembers of the public or a section of the puplicfor a private benefit and which shall be liceri'sedas such under this Act; and

(c) private fundraising appeals which shall consist ofsolicitations made by a person or class of personson behalf of a person or class of persons to themembers of the family of, or relatives of suchperson for the benefit of such person.

Reports ofthecountycommitlees.

Classification offundraisingappeals.

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The Public Fundraising Appeals Bill,2014

*. (L) A person conducts a fundraising appeal if theperson solicits or receives money or a benefit on the basisof a representation that -

(a) the soliciting or reoeiving of the money or benefitis not solely for the profit or cofilrnercial benefitof that person or any otlret person or cause onwhos€ behalf the person is soliciting or receivingthe rnoney or benefit; or

(b) the money ot benefit is to be utilised for publicgood.

(2) A person who solicits or receives money or abenefit uRd€r subsection (1) conducts a fundraising appealwhether or not-

(a) such person made the representation;

(b) the ropresentation fiIade under subsection (1) wasdir€ct or indirect;

(e) the money or benefit, or such proportion of themoney or benefit is applied for the benefit of theperson or cause on whose behalf it is solicited orreceived;

(d) such petson solicits or receives the money orbenefit as an ongoing activity or in relation to aparticular period of time;

(e) such person solicits or receives the money orbenefit as a volunteer or is paid for doing so.

23. Despite the provisions of sectionZ2,the followingactivities do not constitute a fundraising appeal for thepurposes of this Act-

Conduct offundraisingappeal.

Exemptions

(a) soliciting or receiving any money or benefit inrelation to any raffle, lottery or other activity cap.131.authorised or permitted under the Betting,Lotteries and Gaming Act or any other relevantlaw;

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The Public Fundraising Appeals 81il,2A14 /+83

(b) money or property collected by or under theauthority of a recognized representative of areligion or religious community for normalcollections such as tithes and offerings.

(c) soliciting a person to become a member of anorganisation or to pay the joining or membershipfee of an organisation;

(d) the soliciting or receipt of any money or benefitby, or on behalf of, an organisation frqm aperson-

(i) who is, or was, a member of the organisation;or

(ii) who is in the prccess of bceo-ming e mcmherof the organisationl or

(iii) who is a relative of, or who is personallyacquainted with, any person referred to insubparagraph (i) or (ii)-

even if the money or benefit is solicitod or r,eceivedon the basis that it will be applied for purposes oth_cr thanthe benefit of the organisation;

(e) soliciting or receiving money CIr a brenofitexclusively or predominantly ftsm among poplesharing a common employer or principal or plaoeof work if the soliciting or roeeiving -(i) is carried out by one of those people; and

(ii) is made on the basis of a representation thatthe money or benpfit will be applied for abenevolent er philanthropic purposeconnected directly with another of thosepeople or with the immediate family ofanother of thoce people;

(f) soliciting or recpiving money or a benefit:

(i) from the National government, a county

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The Public Fundraising Appeals Bill,2014

government or a state agency;

(ii) for or on behalf of a public benefitsorganisation registered under the PublicBenefits Organisations Act, a corporation,partnership or trust that is perrnitted to donatemoney or benefits for non-profit or non-commercial purposes by its memorandum ofincorporation, articles of association,partnership agreement, trust deed or otherempowering document; and

(g) any other activrty that the Cabinet Secretary mayprescribe.

A. TJlte provisions of this Part shall not apply to aprivate fundraising appeal where the solicitation is madefrom members of the beneficiary's nuclear family orrelatives and does not extend to members of the public.

25. (1) An individual person or a body corporate or anentity registered as a public collection entity under this Actmay conduct a fundraising appeal under this Act.

(2) A person may make an application to the countycommittee to be registered as a public collection entity forthe purpose of conducting fundraising appeals within thecounty under this Act.

(3) The Cabinet Secretary shall, in consultation withthe National Committee, make Regulations for theregistration of public collection entities under this Act.

(4) A public collection entity may, from time to time,conduct fund raising appeals for a public purpose or onbehalf of beneficiaries under this Act and may, for thatpulpose, receive money on behalf a beneficiary or for anintended public pu{pose under this Act.

(5) The obligations imposed on a fundraisingmanager under this Act shall apply to a public collectionentity registered under this Act.

(6) In this section, *public purpose" means -(a) the advancement of community welfare including

the relief of those in need by reason of youth, age,ill-health, gender, disability or any other interest ;

Non-applicationof Part to privatefundraisingappeals.

Persons who mayconduct afundraisingappeal.

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(b) the advancement of eommunity development,including agriculture, wet6r sanitation, rural orurban livelihoods and regertefation;

(c) thc prornotiofl of health, inciuding the preventionor relief of sickness, disease or hi.rman suffering;

(d) the advancement of eonflist resolution orreconciliation;

(e) the integratioil of thsse who are rnarginalized, andthe promotion of their full partioipation, insociety;

(0 the promotion of economic, environrnental, socialor cultural developm€nt;

(g) disaster prevention, preparedness and rnitigation;and

(h) advocating on issues of general publio intersgt orthe interest or well-being of the general publie ora class of individuals or organizations.

26. (1) A person shall not conduct a publicfundraising Appeal unless the person has applied for, andobtained, a licence in accordance with the provisions ofthis Act

(2) A person who intends to conduct a publicfundraising appeal shall submit to the relevant eontmittee,an application for a licence at least thirty days before thedate for the conduct of the fundraising appeal.

(3) An application under subsection (2) shall be insuch form as the National Committee shall determine arrdshall be submitted together with the following information

(a) the full names and address of the person intendingto conduct the fundraising appeal;

(b) the purpose of the fundraising appeal;

(c) the date on which the fundraising is to beconducted;

Appllcation foralicence.

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(d) the names and contact details of the personsassisting in conducting the appeal;

(e) the amount intended to be raised through theappeal;

(0 the estimated expenses to be incurred inconducting the fundraising appeal;

G) the place at whieh the collection is intended to bemde;

(h) the expected timeframe for the appeal; and

(i) such other inforrnation as may be necessary.

(4) $Ihere an applicant for a licence under subsection(2) is no{ the intended beneficiary of the fundraisingappeal, the application shall be submitted together with -

(a) the fturre of every person on whose behalf theperson intends to conduct a fundraising appeal;

(b) ttlc eonlrnon features shared by the class ofpersons for whose benefit the person intends toconduct a ftrndraising appeal, and the means bywhieh the rnoney or benefit is to be transmitted tothat elass or is to be distributed among theindividual nrernbers of that class;

(e) if any intended appeal is not to be conducted forthe immediate direct benefit of one or morepeople, a description of the cause for which theappeal is to be conducted, and the means bywhich the money or benefit will be applied to thecause;

(d) in the ease of -(i) an adult who is the intended beneficiary, the

consent of such adult;

(ii) an adult who is the intended beneficiary butwho lacks legal capacrty to consent, the cap.183

consent of a legally appoinfrnent guardian; or

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(iii) a child who is the intended beneficiary, theconsent of the parents or guardian of the child;

(e) a declaration that the intended fundraising appealdoes not violate the provisions of the PublicOfficers Ethics Act or the provisions of any otherwritten law.

(5) Where the intended beneficiary of a fundraisingappeal is an organisation or the members of suchorganisation, an application for a licence under subsection(2) shall be submitted together with the consent of a dulyauthorised representative of the organisation.

27. (l) The relevant committee may dispense with theperiod specified under section 26(2) where the committeeis satisfied that special circumstances exist to warrant theexemption.

(2) An application submitted under subsection (l)shall contain a statement specifying the specialcircumstances warranting the application.

(3) The relevant committee shall consider theapplication and may, in granting a licence, impose suchas the committee considers appropriate.

28. (1) The relevant committee shall, within ten daysupon receipt of an application under section 26-

(a) examine the documents submitted to it; and

(b) if it considers it necessary, call for such furtherinformation or consent or caffy out such a queryas it may consider necessary for thedetermination of the application.

29. A member of the National Committee or a countycommittee shall not receive any inducement to process anapplication made under this Act.

(2) A member the National Committee or a countycommittee or an employee of either committee whosolicits for or receives a bribe or any other inducement forpurposes of approving an application commits an offence.

Urgentapptcations.

Consideration ofapplication.

Inducements tocommittees

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(3) A person who offers a bribe or any otherinducement to a member of the National Cormmittee or acounty committee or an employee of either eommittee forpurposes of having an application considered positivelycommits an offence.

30. (1) The relevant committee may require a personsubmitting an application for licensing to provide thecommittee with any consent required by another pcrson orbody to enable the committee to obtain from thc stherperson or body information to check or confifln anyinformation set out in the application.

(2) A reference in this Part to seeking furtherinformation in relation to an application ineludes a

reference to requiring the provision of any consent referredto in subsection (1).

31. Where the relevant committee is satisfied that theapplicant meets the requirements for the issuance of a

licence, the committee may, subject to the provisions ofthis Act, -

(a) issue to the applicant, a licence under this Actwithin ten days of receipt of the application; and

(b) enter the name of the applicartt, the beneficiaryand such other particulars in relation to thefundraising appeal as it may consider necessary inthe register of fun&aising appeals kept for thatpurpose.

32. (1) The county committee shall issue to anapplicant one licence in relation to the conduct of eachfundraising appeal under this Act.

(2) A licence issued under subsection (1) shall, unlessotherwise specified by the relevant committee,automatically expire upon the conduct of the fundraisingappeal to which the licence issued relates.

(3) Notwithstanding subsection (2) the exprry of thelicence shall not relieve the licensed person from theobligations imposed under this Act.

Requirement forconsent.

lssuahce of alicence,

Duration oflicence

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33. (1) The county committee may refuse to issue toan applicant, a licence to conduct a fundraising appealwhere -

(a) the application for a licence does not comply withthis Act;

(b) the applicant -(i) is an undischarged bankrupt;

(ii) has been found guilty of an offence under thisAct;

(c) the application for a licence contains false ormisleading information ;

(d) there are significant omissions in the applicationfor a licence or the application is incomplete in asignificant way;

(e) the consent of a beneficiary of an intended appealhas not been supplied;

(0 in the case of an intended appeal on behalf of aclass of beneficiaries, the description of the classis too vague, or the class is insufficientlyidentified; or

(g) the purpose for which the fundraising appeal is tobe conducted is unlawful or incompatible withpublic interest.

(2) The relevant committee may refuse to license aperson as a fundraiser if any person named in theapplication as an fundraising manager is not, in the opinionof the county committee, a fit and proper person to beassociated with a fundraising appeal.

(3) In the case of a refusal, the county committeeshall notify the applicant in writing of the refusal withinthree days of the decision .

34. (l) The relevant committee may, in issuing alicence to an applicant under section 31 impose such

Refusal to issue alicence.

Conditions ofissuance ofalicence.

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conditions on the applicant in relation to the conduct of thefundraising appeal.

(2) The National Committee may, from time to time,issue guidelines relating to the imposition of conditionsunder subsection (1).

35. The relevant committee may, subject to theprovisions of section 36, cancel.a licence issued under thisAct where -

(a) it has reasonable cause to believe that thefundraising appeal is likely to be pursuing anunlawful cause or purpose prejudicial to thepeace, welfare or good order of the public;

(b) the person conducting the fundraising appeal failsto comply with the provisions of this Act;

(c) the person to submit any additional informationthat the committee may require under this Act orrequested by the committee in order to ensurecompliance with this Act; or

(d) the committee determines that the personsubmitted false information or statements at thetime of application for a licence.

36. (1) The relevant committee shall, beforecancelling the licence under section 35 issue to thelicenced persen, a compliance notice in the prescribedform.

(2) A compliance notice specified under subsection(1) shall-

(a) be in writing;

(b) notify the licensed person of the noncomplianceand the steps it is required to take in order tocomply; and

(c) inform the person of the time period within whichit is required to comply with the notice.

Grounds forcancellation of alicence.

Notice of non-compliance.

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(3) The relevant committee may, upon request by alicensed person and where there are sufficient groundsshown by the person, extend the period of compliance forsuch period as it may consider necessary to ensurecompliance.

37. (1) Where a person receives a notice under section36 and fails to comply with such notice, the countycommittee shall -

(a) revoke the licence;

(b) notify the licensed person in writing of -(i) the revocation and the reasons for it; and

(ii) the date on which the licence was cancelled;and

(c) amend the register accordingly.

(2) For purposes of this Act, a cancellation of alicence takes effect on the date on which the licence iscancelled by the relevant committee.

38. Where the relevant committee revokes the licenceof a person, such person -

(a) shall stop any fundraising activities that theperson was undertaking immediately before therevocation took effect;

(b) shall not, without the written consent of therelevant committee, pay out, or otherwisedistribute or deal with, any asset obtained as aresult of any fundraising appeal that the personconducted while registered as a fundraiser;

(c) shall submit to the relevant committee, aninventory of the assets of any fundraising appealbeing conducted by the person within sevenworking days of the revocation; and

(d) subject to paragraph (c), shall ensure that anyassets obtained as a result of the appeal are

Revocation of a

licence.

Duties of afundraiser onrevocation.

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distributed as soon as is practicable to theintended beneficiaries of the appeal.

39. (1) A person who is aggrieved by the decision ofthe county committee under this Part may, within thirtydays of being notified of the decision, apply to theNational Committee for a review of the decision.

(2) An application for review shall be in such form as

the Cabinet Secretary may, prescribe.

(3) The National Committee shall determine anapplication under subsection (1) within fifteen days ofreceip of the application under subsection (1) and mayconfirm, vary or reverse the decision under review.

40. (1) Each committee shall keep and maintain aregister of -

(a) all persons who are licensed to conduct afundraising appeal in the county;

(b) all persons whose licence has been cancelled; and

(c) such other particulars as the Committee may fromtime to time determine.

(2) Any person may inspect the register and obtain acopy of, or an extract from the relevant committee uponpayment of such fee as the National Committee shalldetermine.

41. (1) Each committee shall ensure that the integrityof the register under its custody is maintained at all times.

(2\ A person who falsifies an entry in a register orwrongfully alters an entry in the register commits anoffence.

42. It an application made under section 26 orpursuant to section 27 contains any matter which is false inany material fact known to any person signing it, thatperson commits an offence.

43. (1) A person who conducts a public fundraisingappeal shall keep accurate records of the funds or benefitsreceived.

Application forreview.

Register oflicensedfundraisingappeals.

Alteration ofregister.

False statements.

Receipts,

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(2) A person conducting a fu:rdraising appeal shall,upon request, give a receipt to a person making a monetarycontribution.

(3) A receipt issued under subgeption (1) shall be insuch form and contain such information as the eabinetSeeretary shall, in consultation with the Cabinet Secretaryresponsible for finance, determine.

44. Not more than five per cent of the targetedamount to be raised shall be utilized in defrayingadministrative expenses related to the fundraising appeal.

PART V _ RECORDS AI\D ACCOT]NTS OF AFT]NDRAISING APPEAL

45. (1) Every person who conducts a fundraisingappeal shall keep a record reflecting the income andexpenditure relating to the appeal including -

(a) details of the persons who make contributions inrelation to the fundraising appeal and the amountscontributed by each pdfson;

O) fulI details of all funds and assets received as aresult of the appeal;

(c) full details of the use to which the funds andassets received were put to;

(d) tull details of--(i) the amount applied to the purposes or objects

of the appeal and how it was distributed;

(iD any expenditure on assets;

(iii) any expenditure on wages, salaries,commissions and other remuneration inrelation to the appeal;

(iv) any other administrative expenses related tothe appeal;

(v) any other expenditure related to the appeal;and

(vi) such other information as the Committee maydetermine.

Maxlmumexpenditure

Financial recordsof a fundraisingappeal.

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(2) The person conducting an appeal shall ensure thatthe records are kept in a way that enables them to beconveniently and properly audited.

(3) The person conducting the appeal shall ensure thataccounts containing a sufirmary of the records requfued bysubsections (1) are finalised within three months of-

(a) the date the appeal ends, if the appeal runs for sixmonths or less; or

(b) after every six months if the appeal runs for morethan six months.

(4) For the purposes of this section, an appeal ends onthe occurrence of the first of these events-

(a) if the appeal is being conducted by a personwhose licence has been cancelled, on the date ofthe cancellation of the licence;

(b) in any other case, one month after the lastsignificant solicitation for money or a benefit ismade in relation to the appeal.

(5) Records relating to any proceeds received afterthe date an appeal ends but before the accounts for the lastperiod of the appeal are finalised shall be included in thoseaccounts.

(6) If the person who conducted an appealcontinues to administer any funds or assets received as aresult of an appeal after the appeal ends, the person shallensure that accounts containing a summary of the recordsrequired under subsections (1) and (2) Ne finalised withinone month of the receipt of the funds.

(7) A person to whom subsection (5) applies shallensure that accounts containing a summary of the recordsrequired by subsections (1) and (2) are finalised within twomonths of the date the last of the funds or assets ceased tobe administered by the person.

(8) A person who fails to comply with the provisionsof this section commits an offence.

46. A fundraising manager shall keep the followingrecords-

Other recordsrelatingto afundraisingappeal.

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(a) the name and address of each person whoparticipates in the appeal as an assistant to thefundraising manager;

(b) the name and address of each person who gaineda financial advantage from the appeal, other thanas a person for whose benefit the appeal was heldor other than as a supplier of goods or services,and details of the reason for, and nature andamouilt of, that financial advantage;

(c) the*(i) name and address of every lrerson; or

(ii) name or description of every class of peopleon whose behalf the appeal was made;

(d) copies of the consents required under this Act,where applicable;

(e) the dates on which the appeal starrcd and finished;

(fl gtny other records that may be specified by theCommittee.

47.(l) A fundraising manager shall ensure that anyrecords or accounts that the person is required to keepunder this Part are stored at all times at the address or theregistered office or principal place of business of theper$on or of the designated person.

(2) A person under seetion (1) shall keep andmaintain the records or accounts of a fundraising appealfor a period of at least three yeats after the date the appealends.

(3) A fundraising manager who fails to keep properrecords in accordance with this section commits anoffence.

48. (1) Every fundraising manager shall submit to thecounty committee a summary of the records pertaining tothe fundraising appeal conducted by him or her andprepared under section 45 and the records kept by him orher under section 46 within three months from the date ofthe conduct of the appsal.

Stotaga ofreaxds.

Duty to providerepons aRd

informafion.

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(2) Notwithstanding subsection (1), the relevantcommittee may require a fundraising manager to submit toit, such other information, record or document that it mayin order to enable the committee to determine whether theperson has complied with the provisions of this Act.

(3) A person under subsection (1) shall submit theinformdtion or document required by committee undersubsection (1) within a period of seven days of suchrequest.

(4) A person who fails to submit the records undersubsection (1) or fails to comply with a request undersubsection (2) commits an offence.

49. (1) The Public Service Commission may, at the Inspectors'

request of the National Committee, appoint such inspectorsas it may consider necessary for carrying out ofinspections in relation to fundraising appeals and theperformance of such other functions as the NationalCommittee may assign to them.

(2) Each County Public Service Board may, at therequest of the county committee appoint such number ofinspectors as it may consider necessary for the conduct ofinspections and the carrying out of such functions as thecommittee shall consider appropriate.

50. (1) An inspector may, at any reasonable time, conductor

enter and irrp""t thdpremiser of a nrndraising manager to inspections'

ensure compliance with this Act.

(2) An inspection under subsection (1) shall not beconducted unless the inspector haso with the approval ofthe county committee, issued to the fundraising manager, anotice of at least seven days prior to the carrying out of theinspection.

(3) An inspector may, in conducting an inspectionunder subsection (1) -

(a) enter and inspect any books, records or documentsrequired to be kept under this Act or relating to afundraising appeal, expenditure or distribution ofcontributions;

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(b) inspect, photocopy, print out, or copy onto diskany documents, whether held in electronic orpaper form; or

(c) remove any document specified in paragraph (b),whether in its original form or as an electronic orpaper copy.

(4) Where any original documents are removed fromthe premises of a fundraising manager under subsection(2)(c), the inspector who removes the documents shall -

(a) leave at the entity or premises of the fundraiser, alist of the documents removed; and

(b) return the documents, or a copy of them, to thecentre as soon as practicable unless to do sowould prejudice any investigation being or to becarried out by the Committee or countycommittee.

(5) Every inspector exercising any power under thissection shall, at the time of inspection, possess theappropriate written authorisation, and evidence of identity,and shall produce them to the person in charge of thepremises concerned or, as the case may be, the personhaving possession or control of the books, records, oraccounts concerned -

(a) on frst entering the premises; and

(b) whenever subsequently reasonably required to doso by the person in charge.

(6) A person who obstructs an inspector in theconduct of an inspection commits an offence.

51. (1) A person who, in conducting or participatingin a fundraising appeal, makes a false representation to themembers of the public in soliciting for funds or makes afalse statement to another person that misleads or deceives,or that is likely to mislead or deceive-

(a) the other person; or

False informationin conducting afundraisingappeal.

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(b) anyone else to whom the other person maymake, repeat or give the representation or oral orwritten statement,

commits an offence.

(2) It shalt be a defence for a person under subsection(1) to show -

(a) that she or he reasonably believed that therepresentation or statement was not misleading ordeceptive, and was not likely to mislead ordeceive; or

(b) that the statement was an accurate repetition ofinformation supplied by another person, and thatthe person repeating or passing on the statefnsnthad no reasonable grounds to doubt that theinforrnation was fiue.

(3) Despite the provision of subsection (2) above, theperson shall be required to surrender to the countycommittee any collections or donation received in thecourse of the fun&aising activity.

I\{ISCELIANEOUS PROVISIONS

5?. (1) For the avoidance of doubt, nothing in this Act Not+nwv Bill

may be consrued as providing for or Ueating wTttr- statos'

(a) taxes;

(b) the imposition of charges on a public fund or theviriatiou or repeal of any of those charges;

(c) the appropriation, receipt, eustody, iRvesunent orissue of public money;

(d) the raising or guaranteeing of any loan or itsrepaymenq or

(e) rnatters incidental to any of those matters.

(2) There rriay be established a fund which shallc,onsist of monies spoei{ied under subsection (3).

(3) AnV expenses that may be oeeasioned in theimplementation of this Act shall be provided from-

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(a) such gifts, grants or donations as may be given;

(b) such monres as may, in the future, be provided bythe National Assembly for defraying the expensesincurred in the impleme.ntation of this Act; and

(c) sueh other rno-nies that may larvfully aocrue in thedischarge of the functions uder this Act, notbeing monies accruing pursuant to Art-icle 114 ofthe Constitution.

53. (1) The Cabinet Secretary shall, in accordaneewith the appropriate law, and in coaslltation with theCabiaet Secretary responsible for finance, gtrant to personswho make voluntary contributions pursuant to afundraising appeal, such tax incentives on theircontributions, as shall be considered necessary for theadvancement of voluntary contributions in the Republic.

(2) The CabineJ Secretary shall operationalizesubseqtion (1) within sixty days of comqrencement of thisAct.

54. (l)The county cornmittees strall decentralise theirservices to the wards and village units established inaccordance with section 48 of the County GovernmenlsAct.

(2) The National Committee shall oreate regionaloffices for the better carrying out of its functions under thisAct.

55. Each committee established under this Act shallset up a Social Development Fund which shall contain-

(a) funds or procceds from sale of assets surrenderedto tho committee by fundraisers;

(b) licence fees received by the committee; and

(c) any other donations made to the committee.

(2) The funds in subsection (1) shall be utilizedpromoting social development in the area of operationthe committee.

(3) A committee which utilizes the funds undersubsection (2) for any other purpose without the approval

Tax incentives.

Decenfralisationof services.

No. 17 of 2012.

Socialdevelopmentfunds.

inof

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of the Cabinet Secretary commits an offence and itsmembers shall be held jointly and severally liable for theoffence.

(4) The Cabinet Secretary shall issue guidelines forthe utilization of the monies contained in the fundsestablished under this section.

56. A person who commits an offence under this Act Generalpenalty.

for which no penalty is prescribed shall be liable, onconviction, to a fine not exceeding two million shillings orto imprisonment for a term not exceeding five years orboth.

57. (1) The Cabinet Secretary may, in consultation Regulations.

with the National Committee, make regulations generallyfor the better carrying out of the provisions of this Act.

(2) Wittrout prejudice to the generality of subsection(l), the Cabinet Secretary may in consultation with theNational Committee make regulations -

(a) for the licensing of fundraisers;

O) for the determination of applications for review;

(c) for adequate monitoring mechanisms to ensuretransparency and accountability under this Act;

(d) in consultation with the Cabinet Secretaryresponsible for finance, for the exemption ofpersons in relation to activities and funds raisedfor a public purpose, from tax liabilities under thisAct;

(e) for the conduct of sensitizatiot progxammes andthe publication and dissemination of informationunder this Act; and

(f) for charges and fees to be paid to the relevantcommittee under this Act.

(3) For the purposes of Article 94(6) of theConstitution -

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(a) the authority of the Cabilet Secretary to makeregulations shall be limited to the implementationof the provisions of this Act and the fulfilment ofthe objectives specified under subsection (1); and

(b) the principles and standards set out under theInterpretation and General Provisions Act and theStatutory Instruments Act, 2013 in relation tosubsidiary legislation shall apply to regulationsmade under this Act.

58. Where a period for performance of any action hasbeen prescribed in this Act, a person may apply to therelevant committee, in the prescribed format, for extensionof the timeline.

59. (1) A member of the National Committee, a

county committee or an employee of the NationalCommittee or a county committee shall not receive anygift or favour from an Applicant or a person licenced underthis Act if the licence is still in operation.

(2) A person who contravenes the provisions ofsubsection(l) above commits an offence.

60. The Public Collections Act is repealed.

Cap.2.

No.23 of2013.

Extension oftime.

Prohibition ofreceipt ofgifts.

Repeal ofCap.106.

(s.8)

61. All directions, certificates of authority orders and P.i1P_yapprovals issued under the Public Collections Act and provtsrons'

subsisting or valid immediately before the commencementof this Act, shall be deemed to have been given, issued ormade under this Act.

SCHEDULE

PROVISIONS AS TO TIIE CONDUCT OF BUSINESS ANDAFFAIRS OF THE NATIONAL COMNIITTEE AND TIIE

COUNNY COMMITTEES

1. (1) The National Committee shall meet at such Meetings'

place in Kenya or as the chairperson may determine and themeetings shall be convened by the chairperson.

(2) A County Committee shall meet at such place inthe relevant county, as the chairperson may determine andthe meetings shall be convened by the chairperson.

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(3) A Committee shall have at least four meetings inevery financial year and not more than three months shallelapse between one meeting and the next meeting.

(4) Unless three quaders of the mem-bem otherwiseagree, at least sevqn days' notice in writing of a meetingshall be given to every member by the Director.

(5) The chairperson may, at his or her discretien or atthe writteo request made by at least half of the members ofthe Committee and within seven days of the request,convene an extraordinary meeting at such time and place ashe or she may appoint.

(6) Meetings shall be presided over by the chaiqpersonor in his or her absence by the vice-chairperson.

(7) The members of a Committee shall elect a vice-chairperson from among themselves-

(a) at the first sifting of the Committee; and

(b) whenever a vacaRcy a ises in the office of thevice-chairperson.

(8) Where the chairperson or vice-chair-person isabsent, the membe.rs strall appoint from among themselves,a person to chair the meeting of the Committee.

(9) The Committee may invite any person to attendany of its meetings and to participate in its deliberations,but such person shall not have a vote in any decision of theCommittee.

(10) A person invited under subparagraph (8) aboveshall declare whether he or she or a person or anorganization associated with the person has an interest inany matter under consideration by the Committee.

2, (l) If any person has a personal or fiduciary interestin a project, proposed conffact or any matter before theCommittee, and is present at a meeting of the Committee atwhich any matter is the subject of consideration, thatperson shall as soon as is practicable after the

Conflipt ofintereBt

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The Public Fundraising Appeals Bill,2014 503

commencement of the meeting, declare such interest andshall not take part in any consideration or discussion of, orvote on any question touching such matter.

(2) A disclosure of interest made under subparagraph(1) shall be recorded in the minutes of the meeting at whichit is made.

3. (1) Subject to subparagraph (2), the quorum of themeeting shall not be less than half of the appointedmembers of the Committee.

(2) Where the persons present at a meeting of theCommittee do not constitute the quorum necessary to holda meeting under this Act or where by reason of exclusion ofa member from a meeting, the number of members presentfalls below the quorum necessary to hold a meeting, theCommittee shall postpone the consideration of the matter inquestion until there is a quorum.

4. A question before the Committee shall be decidedby simple majority of the members present and voting andthe chairperson shall, in the case of an equality of votes,have a casting vote.

5. The Committee shall-

(a) determine rules of procedure for the conduct of itsbusiness; and

O) keep minutes of its proceedings and decisions.

6, For purposes of this schedule, unless the contextotherwise requires, the word 'committee' refers to eitherthe National Committee or a counQl committee

Voting.

Rules ofProcedureand minutes

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The Public Fundraising Appeals Bill,2014

MEMORANDT]M OT OBJECTS AND REASONS

Statement of the Objects and Reasons for the BiII

The principal object of this Bill is to provide for the establishment ofregulatory mechanisms at the national and county levels which oversee theconduct of fundraising appeals, to provide for the licensing and regulationof fundraisers; the promotion of transparency and accountability in theconduct of fundraising appeals.

The Bill is developed against the need to maintain the altruisticrationale that public appeals (Harambees) serve in the Kenyan societywhile addressing the shortcomings that have accompanied this process.

The Bill seeks to replace the Public Collections Act, Chapter 106,Laws of Kenya, whose institutional architecture does not align with thedevolved structures of the Kenyan constitution and is not sufficientlyrobust to address comrption tendencies associated with voluntarycontributions. Further, the Fublic collections Act excludes from itspurview, charitable and religious purposes yet this forms a largecomponent of harambees.

The Bill is also based on the need to reduce the culture ofdependency that harambees have imbued in society, extending evenessentially private affairs to the larger public. The Bill seeks to restrictappeal for private matters within the circle of family and friends and havepublic appeals for public purposes. Its passage will promote the use ofdevolved structures as entities for promoting structured socialdevelopment by ensuring that the conduct of public appeals are approvedby assessing their links to the needs and priorities of the counties and theirdecentralized structures.

To support voluntary contributions, it is imperative that the stategrants incentives to such givers. The current regulatory regimes arelimited in their tax incentives and essentially excludes private individuals.This Bill will provide frameworks within which tax incentives can beissued to voluntary contributions.

The Bill-

(a) establishes a Fundraising Appeals Committee which, among otherfunctions, regulates and monitors the conduct of fundraisingappeals and establishes mechanisms for the promotion of

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The Public Fundraising Appeals Bill,2014

transparency and accountability in the conduct of fundraisingappeals;

(b) creates county fundraising appeals committee whose functionsinclude regulating, monitoring and evaluating fund raisingappeals within the county;

(c) defines fundraising appeals, indicates who can undertake afundraising appeal and lays out procedures for applying forpermits, conditions to be fulfilled and consequences of notfollowing these conditions;

(d) defines and excludes private fundraising appeals from itsprovisions; and

(e) stipulates records and accounts of fundraising appeals that mustbe retained.

The Schedule contains provisions for the conduct of business andaftairs of the National Committee and the County Committees.

Statement on the delegation of legislative powers and limitation offundamental rights and freedoms

The Bill does delegates legislative powers only to the extent of givingeffect to the provisions of the Bill it does not limit fundamental rights andfreedoms.

Statement of how the Bill concerns county governments

The Bill makes provision for regulation of fundraising appeals at thenational and county levels of Government. The Bill therefore concernscounty governments in terms of Article 110(a) of the Constitution as itaffects the functions and powers of County Governments set out in theFourth Schedule.

Statement that the Bill is not a money Bill within the meaning ofArticle 114 of the Constitution.

Clause 52 of the Bill specifically removes the Bill from the ambit ofthe matters listed under Article 114 oi the Constitution. The clause furtherprovides that any expenses that may be occasioned by the implementationof the Act are to be provided from such gifts, grants or donations as maybe given or from such monies as the National Assembly may, in the

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The Public Fundraising Appeals Bill,2014

future, provide for the defraying of such expenses. The Bill also providesthat a fund may be established for the purposes of the custody of suchfunds. The Bill does not therefore appropriate funds for theimplementation of the Act; any appropriation would be effected throughseparate legislation which would be introduced and enacted in terms ofArticle 114 of the Constitution. This Bill is therefore not a money Billwithin the meaning of Article 114 of the Constitution.

Dated 22nd,May,2014ANYANG'NYONG'O,

Chairmnn, Senate Ad Hoc Committee on Legislation onHarambee (Voluntary Contribution).

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