The Committee on Finance and National Planning has called for an enhanced financial reporting legal framework and additional stringent measures to curb illicit financial flows, which have seen Kenya grey-listed twice in the recent past.
Speaking earlier today during the vetting and approval hearing for Naphtaly Kipchirchir Rono, the nominee for Director General of the Financial Reporting Centre (FRC), lawmakers led by Committee Chairperson Kuria Kimani noted that the search for FRC’s top officer comes at a critical juncture as Kenya intensifies efforts to bolster financial integrity and combat international financial crimes.
The county was placed on the grey list twice, in 2010 and 2024, as you are aware. The cost and ease of doing business are impacted by this grey listing because, according to Kimani, “all financial transactions beyond a country’s borders face heightened scrutiny, causing delays and affecting the ease of doing business.”
“We would want you to focus on addressing the legal and administrative gaps to improve the country’s financial integrity if you find favour with this Committee and the House and are appointed for this position,” the Chairperson said to the nominee.
During the session, the nominee was questioned on how he would leverage his professional background as an intelligence officer to accelerate the fight against terrorism financing and money laundering.
He was also asked how he would use the position to bolster information sharing among relevant agencies, a key missing link that contributed to the country’s latest grey-listing.
In response, Rono informed the Committee that while serving in the counter-terrorism sector, he previously assisted Kenya in being delisted from the grey list (the designation for countries with strategic deficiencies in combating money laundering, terrorist financing, and proliferation financing).
“I have served in the anti-money laundering space, first as assistant director of operations at the National Intelligence Service and, currently, as deputy director of counter-intelligence. During this time, I served as part of the task force which was involved in the removal of the country from the grey list,” he told the MPs.
He noted that his work experience would come in handy in the successful execution of the position’s mandate should he be considered.
“Experience will be vital in my new assignment. If approved, the skills I have gained will be handy as the country navigates the process of removal from the grey list. I consider myself suitable because of not only my academic experience but also because I bring a combination of international finance knowledge and experience in fields vital to the role. ‘I see this position as a high patriotic calling,’ stated the nominee.
Acknowledging his deep expertise in the Anti-Money Laundering (AML) space, lawmakers also lauded his stellar academic credentials, noting he finished at the top of his law class.
While emphasising the need for the full implementation of the Centre’s strategic plan, the legislators urged him, upon successful appointment, to immediately address the legal and operational gaps required to delist Kenya from the grey list.
When asked how he would further tighten Kenya’s AML and Counter-Terrorism Financing (CFT) framework, Rono stated he would seek enhanced scrutiny regarding claims on unclaimed bank accounts, insurance payouts, and other dormant financial assets.
While emphasising the importance of the FRC collaborating with parties such as the Unclaimed Financial Assets Authority (UFAA), the nominee told the Committee he would enhance information sharing to ensure sanctioned individuals or their proxies do not benefit from illicit cash flows.
“There is a risk of unclaimed assets being reunited with individuals linked to criminal or terrorist groups. That is where collaboration becomes important, so that proceeds of crime do not re-enter the economy through legitimate channels,” added the nominee.
Rono further noted that while the UFAA is not currently a reporting institution under the AML framework, it plays a critical role in safeguarding the financial system.
He informed MPs that effective AML enforcement depends on coordinated priorities, mutual trust, and clearly defined operational goals driven from the top.
“One of my priorities would be leadership engagement across agencies,” he pledged.
The FRC was established under Section 21 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) of 2009.
The Centre exists as an independent body and central agency for receiving, analysing, and disseminating information regarding suspicious financial transactions.
If successful, Rono will serve as the third Director General since the Centre’s inception in 2012.
