International development agencies will be required to reserve at least two-thirds of jobs for Kenyans to qualify for diplomatic privileges in proposed legal changes that also withdraw their legal immunity from contractual disputes, labour grievances and traffic offences.
The Privileges and Immunities (Amendment) Bill 2025 is seeking new criteria for awarding diplomatic privileges such as tax exemptions and legal immunities to foreign development institutions, charities and foundations such as Oxfam and Save the Children International.
The proposed sweeping legal changes will limit expatriate hires to one-third of total staff to align with Kenya’s national labour objectives which grant work permits to foreign firms that demonstrate that the required technical skills are not available in the country.
“The [internationally recognised] body may employ expatriates upon justification that no Kenyan has the requisite qualifications, skills, or experience to occupy a particular junior or middle level position,” the Bill reads.
“The internationally recruited staff or expatriates shall be no more than one third of the total number of staff working for the organisations.”
The Bill significantly narrows the scope of immunities available to foreign NGOs and development agencies.
Immunity from legal process will apply to actions conducted in the course of official duties, excluding contractual disputes, commercial activities, labour grievances, traffic offences and criminal matters.
This reverses longstanding perceptions that some organisations have previously operated with excessive protections from the law.
The legal changes also seek to scale back tax exemptions following concerns over broad cushions accorded to some organisations which were given diplomatic privileges earlier in the year.
Tax benefits the targeted firms, legally referred to internationally recognised bodies, will get will be restricted to goods and services procured for official use, while business income, utilities, indirect taxes and land rates will remain payable.
Foreign and Diaspora Affairs Cabinet Secretary will also have powers to suspend or withdraw privileges in cases of abuse, breach of Kenyan law or refuse to waive immunity where necessary for the administration of justice.
The proposed overhaul of vetting and regulation of organisations with diplomatic privileges follows public uproar earlier this year after the government granted host country agreements to six organisations, triggering debate over transparency, accountability and national interest.
The Ruto administration in February approved privileges for Shelter Afrique Development Bank, Oxfam International, the International Institute for Democracy and Electoral Assistance (IDEA), the Norwegian Refugee Council, Population Services International (PSI), and Save the Children International.
Months earlier, in October 2024, the Gates Foundation had been granted similar status, but the organisation withdrew from the agreement in April after the Law Society of Kenya (LSK) challenged the award in court, citing concerns over procedural fairness and broad immunities.
Foreign and Diaspora Affairs Cabinet Secretary Musalia Mudavadi said the proposed new legal provisions will plug gaps in the current law, making clear government’s intention to prevent repeat of controversies seen earlier this year.
“The principal object of this Bill is to amend the provisions of the Privileges and Immunities Act, Cap. 179, to address the challenges affecting the grant and administration of privileges and immunities to internationally recognised bodies offering technical assistance to the Government,” Mr Mudavadi, also Prime Cabinet Secretary, wrote in memorandum accompanying the Bill.
The Foreign Affairs ministry has scheduled a webinar on Tuesday (November 18) to collect public views.
To maintain privileged status, internationally recognised bodies will be required to submit an annual performance and staff report to the Foreign Affairs CS by December 31 each year.
Organisations that fail to meet reporting obligations risk having their host country agreements suspended or revoked within 14 days of notice.
Existing organisations that currently enjoy diplomatic privileges will continue operating under transitional arrangements until their agreements are reviewed under the new framework.
Organizations applying for or renewing privileged diplomatic status will be required to submit audited financial statements for two years, staffing levels, budgets, firm’s activities, projected investments and a breakdown of their board composition.
At the heart of the overhaul is the establishment of a powerful seven-member Host Country Agreements Committee, which will vet organisations applying for diplomatic immunities, tax exemptions or formal host country agreements.
The committee will be chaired by the Principal Secretary for Foreign Affairs Korir Sing’Oei.
Members of the the committee will be National Treasury PS Chris Kiptoo, Attorney-General Dorcas Oduor, Kenya Revenue Authority Commissioner-general Humphey Wattanga, Director-General of Immigration services Evelyn Cheluget, and the National Intelligence Service Noordin Haji, or their respective designated representatives.
The powerful committee will evaluate each organisation’s governance, compliance, financial transparency and operational footprint before making a recommendation to the Cabinet Secretary on whether an agreement should be approved, renewed, suspended or terminated.
It will also scrutinise annual returns filed by organisations and monitor whether activities undertaken in Kenya align with the commitments outlined in their agreements.
To qualify, an organisation must have operated for at least five years, demonstrate performance record in a minimum of three countries and show that its activities directly support Kenya’s development priorities such as health, humanitarian relief, education, scientific research, environmental protection and public health.
The multi-agency structure marks a significant shift from the current decentralised vetting processes done by Foreign Affairs Cabinet secretary and his staff.
This is likely to give the government greater visibility into how foreign organisations are funded, staffed and managed.
The proposed law also introduces a new offence for submitting falsified or forged documents during the application process, carrying a penalty of up to three years in jail or a Sh100,000 fine, or both.
