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PART V. - FUNDING POLITICAL PARTIES.

Division 1. - Central Fund and Contribution.

53. Funding of political party only in accordance with this Law.

(1) A political party shall be funded only in accordance with this Law.

(2) Only a registered political party is eligible to receive funding from the Central Fund.

(3) The funding of a registered political party shall consist of:

    1. funding from the Central Fund where applicable in accordance with this Law; and
    2. any contributions made to the registered political party under Sections 57(1)(b) and 59(1)(b); and
    3. such other income as is not inconsistent with the provisions in this Law.

54. Establishment of Central Fund.

(1) A fund to be called the Central Fund is hereby established.
(2) All monies:
(a) required to be paid to the Central Fund under this Law; and
(b) otherwise available for payment to the Central Fund under this Law,
shall be paid into the Central Fund and all payments authorized to be made under this Law shall be met by the Central Fund.
55. Source of funds in Central Fund.
The Central Fund shall hold funds contributed from the following sources:-
(a) monies appropriated in the National Budget in accordance with Section 56; and
(b) contributions made by citizens in accordance with Section 57(1)(a); and
(c) contributions made by an international organization in accordance with Section 58; and
(d) contributions made by non-citizens in accordance with Section 59(1)(a); and
(e) funds raised by the Board; and
(f) proceeds received by the Board from investments made by it.

56. Public funding.

(1) In the National Budget for each year funds shall be appropriated in accordance with this section for the purposes of the Central Fund.
(2) The amount of funds to be appropriated in each year for the Central Fund shall be calculated as follows:-
(a) K10,000.00 in respect of each Member of the Parliament; and
(b) an amount to cover any increase in the amount referred to in Paragraph (a) as a result of an increase under Section 61(3); and
(c) an amount to cover the administration of the Central Fund; and
(d) an amount, as determined by the Board, to cover the Central Fund’s commitments under Section 62.

57. Contributions from citizens.

(1) Subject to this section, a citizen may contribute to:
(a) the Central Fund, to an unlimited extent; and
(b) a political party, to an extent provided by Subsection (2)(a); and
(c) a candidate, to an extent provided by Subsection (2)(b).
(2) Subject to Subsection (4), contributions made by a citizen:
(a) under Subsection (1)(b) - shall not exceed the sum of K500,000.00 in total in any calendar year; and
(b) under Subsection (1)(c) - shall not exceed the sum of K500,000.00 in respect of any one election.
(3) Subject to Subsection (4), a citizen shall not enter into any scheme to defeat the provisions of Subsection (2).
(4) Subsections (2) and (3) do not apply to a loan made to:
(a) a political party; or
(b) a candidate at an election,
by a corporation which is licensed as a bank or financial institution under the Banks and Financial Institutions Act 2000, where the loan and the terms of the loan are similar to those available in the normal course of business of the bank or financial institution.
(5) A citizen, who makes a contribution to:
(a) a political party; or
(b) a candidate at an election,
shall, within 30 days of making the contribution, inform the Registrar of:
(c) the amount of the contribution; and
(d) the name of the political party or candidate, as the case may be, to which or whom the contribution was made; and
(e) the date on which the contribution was made; and
(f) such other matters concerning the contribution as may be prescribed.
(6) A person, who fails to comply with Subsection (5), is guilty of an offence.
Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed.
(7) A:
(a) registered political party; or
(b) candidate at an election,
shall, within 30 days of receiving a contribution from a citizen, inform the Registrar of:
(c) the amount of the contribution; and
(d) the name of the citizen from whom the contribution was received; and
(e) the date on which the contribution was made; and
(f) such other matters concerning the contribution as may be prescribed.
(8) A:
(a) registered political party which; or
(b) candidate who,
fails to comply with Subsection (7), is guilty of an offence.
Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed.
58. Contributions from International Organisations.
(1) An international organization may contribute to the Central Fund.
(2) An international organization shall not contribute directly to a registered political party.
59. Contributions from non-citizens.
(1) Subject to this section, a non-citizen may contribute to:
(a) the Central Fund, to an unlimited extent; and
(b) a registered political party, to an extent provided by Subsection (2)(a); and
(c) a candidate, to an extent provided by Subsection (2)(b).
(2) Subject to Subsection (4), contributions made by a non-citizen:
(a) under Subsection (1)(b) - shall not exceed the sum of K500,000.00 in total in any calendar year; and
(b) under Subsection (1)(c) - shall not exceed the sum of K500,000.00 in respect of any one election.
(3) Subject to Subsection (4), a non-citizen shall not:
(a) contribute, directly or indirectly, to a political party which is not a registered political party; or
(b) enter into any scheme to defeat the provisions of Subsection (2) or of Paragraph (a).
(4) Subsections (2) and (3) do not apply to a loan made to:
(a) a political party; or
(b) a candidate at an election,
by a non-citizen corporation which is licensed as a bank or financial institution under the Banks and Financial Institutions Act 2000, where the loan and the terms of the loan are similar to those available in the normal course of business of the bank or financial institution.
(5) A non-citizen, who makes a contribution to:
(a) a registered political party; or
(b) a candidate at an election,
shall, within 30 days of making the contribution, inform the Registrar of:
(c) the amount of the contribution; and
(d) the name of the political party or candidate, as the case may be, to which or whom the contribution was made; and
(e) the date on which the contribution was made; and
(f) such other matters concerning the contribution as may be prescribed.
(6) A person, who fails to comply with Subsection (5), is guilty of an offence.
Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed.
(7) A:
(a) registered political party; or
(b) candidate at an election,
shall, within 30 days of receiving a contribution from a non-citizen, inform the Registrar of:
(c) the amount of the contribution; and
(d) the name of the non-citizen from whom the contribution was received; and
(e) the date on which the contribution was made; and
(f) such other matters concerning the contribution as may be prescribed.
(8) A:
(a) registered political party which; or
(b) candidate who,
fails to comply with Subsection (7), is guilty of an offence.
Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed.
Division 2. - Endorsement of Candidates.
60. Endorsement of candidates.
(1) The following provisions apply to the endorsement of candidates at elections to the Parliament:-
(a) a registered political party shall not endorse more than one candidate (whether male or female) in each electorate;
(b) a political party which is not registered shall not endorse a candidate;
(c) a candidate shall not accept endorsement from more than one registered political party at the same time.
(2) A registered political party which endorses more than one candidate in an electorate is guilty of an offence.
Penalty: A fine not exceeding K5,000.00.
(3) Where a registered political party:
(a) is convicted of an offence under Subsection (2); and
(b) one of the candidates endorsed by that registered political party in the electorate in respect of which the offence was committed, wins the election,
that candidate shall be treated as an independent for the purposes of this Law.
(4) A candidate who accepts endorsement in an election from more than one registered political party is guilty of an offence.
Penalty: A fine not exceeding K2,000.00.
(5) Where a candidate:
(a) is convicted of an offence under Subsection (4); and
(b) wins the election in respect of which the offence was committed,
his election shall be declared void.
Division 3. - Distribution of Funds from Central Fund.
61. Distribution of moneys from the Central Fund.
(1) For the purposes of this section, “registered political party represented in the Parliament” means a registered political party, a member of which is a Member of the Parliament who:
(a) was endorsed by that registered political party at the time of his election to the Parliament; or
(b) who subsequently joined that registered political party, and who is not a member of another registered political party.
(2) Subject to this section and to any other relevant provision of this Law, the Board shall pay out of the Central Fund:
(a) subject to Subsection (3), to each registered political party represented in the Parliament, the sum of K10,000.00 for each Member of the Parliament who is a member of that registered political party; and
(b) any sum payable to a registered political party under Section 62.
(3) The Board may, taking into account national economic factors, increase the amount payable under Subsection (2)(a), but no such increase shall exceed 10% in any one year.
(4) The Board may, from time to time, out of moneys available in the Central Fund after making the payments under Subsection (2) or (3) make an additional payment to each registered political party.
(5) The amount to be paid to each registered political party under Subsection (4) shall generally be in accordance with the principles of Subsection (2).
62. Funding of female candidates.
Where:
(a) a registered political party endorsed a female candidate in an election and spent an amount as election campaign expenses on her behalf; and
(b) the female candidate obtained at least 10% of the votes cast in the electorate in that election,
the registered political party shall be entitled to receive from the Central Fund:
(c) 75% of the amount expended by the registered political party as election campaign expenses on her behalf; or
(d) an amount fixed by the Board,
whichever is the lesser.
63. Claims for payment.
(1) The Board shall not make any payments out of the Central Fund under Section 61(2)(a) or (b) except:
(a) on the making of a claim by a registered political party in accordance with this section; and
(b) where the Board is satisfied that the registered political party is entitled to funding under Section 62 or 64.
(2) A registered political party may apply to the Board for payment under Section 62.
(3) A claim under Subsection (1)(a) or (2) shall:
(a) be made in the prescribed form; and
(b) be signed by the president of the registered political party and by its secretary or treasurer; and
(c) be made within the prescribed time period.
64. Membership of a Member of the Parliament in a registered political party.
(1) Subject to Subsection (3), as soon as practicable after 1 March in each year, the Board shall make a determination as to the membership of registered political parties of Members of the Parliament.
(2) For the purpose of the distribution of funds from the Central Fund to a registered political party, a Member of Parliament is deemed to be a member of that registered political party where he is a member of that registered political party on 1 March of that year.
(3) In making a determination under Subsection (1), the Board shall determine that a Member of the Parliament is a member of a registered political party where the Board is satisfied:
(a) that the Member was endorsed as a candidate of that registered political party in the election of that Member to the Parliament; or
(b) the Member was in his election to the Parliament not endorsed by a political party, but has since notified the Speaker or the Board in writing that he has joined that registered political party; or
(c) the Member has:
(i) notified the Speaker or the Board in writing that he is a member of that registered political party; and
(ii) consistently sat and voted with that registered political party for a period of six months or more,
and the Board is satisfied that that Member is a member of that registered political party.
65. Entitlement to funding from the Central Fund.
(1) A person who is a Member of the Parliament, determined by the Board under Section 64 not to be a member of a registered political party, is not entitled to any payment of funds from the Central Fund and shall not be included in any calculation of payment of funds from the Central Fund.
(2) A registered political party which:
(a) does not have any members who are Members of the Parliament; or
(b) has failed to file a financial return in accordance with Section 67,
is not entitled to any payment of funds from the Central Fund.
Division 4. - Offences relating to Contributions and Funding.
66. Contributions.
(1) A:
(a) citizen, who gives a contribution to a political party or to a candidate in excess of the limits specified in Section 57(2); or
(b) non-citizen, who gives a contribution to a political party or to a candidate in excess of the limits specified in Section 59(2),
is guilty of an offence.
Penalty: A fine not exceeding K10,000.00 or imprisonment for a term not exceeding two years, or both.
(2) A:
(a) political party, which; or
(b) member of a political party, who,
seeks or accepts a contribution to that political party from:
(c) a citizen, in excess of the limits specified in Section 57(2); or
(d) a non-citizen, in excess of the limits specified in Section 59(2),
is guilty of an offence.
Penalty: In the case of a political party, a fine not exceeding K10,000.00.
In the case of a member of a political party, a fine not exceeding K2,000.00 or imprisonment for a term not exceeding six months, or both.
(3) A:
(a) citizen, who fails to comply with Section 57(3); or
(b) non-citizen, who fails to comply with Section 59(3),
is guilty of an offence.
Penalty: A fine not exceeding K10,000.00 or imprisonment for a term not exceeding two years, or both.
(4) Where a political party or a member of a political party is convicted of an offence under Subsection (2) which relates to the acceptance of a contribution, it or he shall, in addition to any penalty imposed under Subsection (2), pay to the Central Fund:
(a) where the contribution was money - the amount received; and
(b) where the contribution was other than money - an amount equal to the value of the contribution as determined by the Board,
and the political party is not entitled to any distribution of moneys from the Central Fund under Section 61 until such payment is made.
(5) A candidate, who seeks or accepts, for the purposes of his election:
(a) a contribution from a citizen in excess of the limits specified in Section 57(2); or
(b) a contribution from a non-citizen in excess of the limits specified in Section 59(2),
is guilty of an offence.
Penalty: A fine not exceeding K5,000.00 or imprisonment for a term not exceeding one year, or both.
(6) Where a person convicted of an offence under this section is a person to whom the Leadership Code applies, the offence amounts to misconduct in office for the purposes of the Leadership Code. 

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