The Requirement to open a bank for NGOs in Kenya

In their operations and as an administrative requirement, registered NGOs are required to open and maintain bank accounts with recognized banks. This is one of the terms and conditions attached to certificate of NGO registration.

In order to do this, they are required to seek authority in writing from the NGOs Coordination Board (NGOB).

Requirements for Bank Recommendation

The requirements include:

i. Introduction letter to the Executive Director (ED) of NGOB. The letter must specify the bank, branch and the signatories for the account the NGO intent to open.

ii. Copy of minutes signed by registered officials and stating signatories and signing instructions. The minutes must resolve to open bank account. It is MANDATORY that the minutes also stipulate the branch and the signatories of the account. The minutes must be submitted within fourteen days from the date of the meeting.

Where an official of the organization is unavailable to sign the minutes, he or she can send an Email to the NGOs Co-ordination Board communicating that he /she has no objection to the said resolutions.

iii.Payment of the required processing fees .

iv.All NGO bank accounts should have at least one substantive Kenyan board

member as a signatory.

Rejection of the Bank Letter Request

The NGOB may reject the request to issue a recommendation letter in the following scenarios:

i. If the organization has submitted minutes after the fourteen days limit, then the NGOB will not accept them and they will be required to hold another meeting to reconfirm the resolution.

ii. Where the specimen signature of any of the top 3 official does not conform to the NGOB records.

iii. Where the NGO is not up-to-date with its returns. The NGO will be required to

comply by filling all the pending returns, pay the filling and the penalty fee for the

years defaulted.

iv. When an organization has changed officials without informing the Board. Such an

organization will be required to follow the procedure for change of officials

before the recommendation letter is issued.

v. If an organization had opened previous accounts without informing the NGOs

Coordination Board.

At GND,we will draft the Introduction letter and advise on any questions pertaining to this crucial process.