Kuwait drafts new rules for government donations, grants and contributions
- Under the proposed framework, the Council of Ministers would have the final say in accepting or rejecting contributions that meet the prescribed procedures and conditions. The relevant minister would, however, be authorized to accept in-kind contributions valued at less than 5,000 dinars without referring them to the Cabinet, provided all requirements are fulfilled.
Kuwait is preparing a draft resolution to reorganize how ministries, government agencies, institutions and government companies accept contributions, grants, donations, gifts and sponsorships from individuals, banks, companies and local or foreign entities, with tighter financial, accounting and governance controls.
Under the proposed framework, the Council of Ministers would have the final authority to approve or reject contributions that meet the required conditions. The relevant minister could accept in-kind contributions valued at less than 5,000 dinars without referring them to the Cabinet, provided all procedures and conditions are met.
The draft would prohibit contributions from giving donors any role in managing or operating projects, or providing them with direct or indirect financial interests, privileges, preferential treatment or benefits from the recipient entity. Contributions must also create no future financial or operational burden for the government entity receiving them.
Each contribution would be subject to technical, financial and legal assessment, including consideration of feasibility, sustainability, the government entity’s current and future needs, and the specific project phase being funded. Contributions must support the entity’s legally defined objectives and cannot conflict with public order, national unity, state sovereignty, Kuwaiti values or social stability.
Government entities would be barred from soliciting cash or in-kind contributions from contractors, private companies or individuals to finance projects or other purposes, except for publicly announced appeals encouraging citizens to support services or activities that fall within the entity’s legal responsibilities.
The proposed rules would also regulate changes to the purpose of a contribution. If the original purpose is achieved through other means, the contribution could be redirected only with Cabinet approval and the consent of the donor, representative or heirs, as applicable. Any remaining surplus would be transferred to the State’s General Budget.
Government entities would be required to maintain detailed statistical records of all cash and in-kind contributions, grants and donations and submit copies annually to the Ministry of Finance. Donor information could remain confidential when requested.
The draft also calls for contributions to be governed by specific bank-account, accounting and disclosure procedures, including rules for opening and monitoring dedicated accounts, recording contributions in government accounts, reflecting them in the state budget and final account, and classifying them according to approved budget codes.
The Minister of Finance would issue the detailed implementation mechanisms, covering cash, in-kind and real-estate contributions, construction projects on state land, and other forms of support. These mechanisms would require Cabinet approval before taking effect, reinforcing oversight, transparency and governance of government contributions.
