The National Assembly’s Departmental Committee on Finance and National Planning has called for stricter legal and administrative measures to curb illicit financial flows, warning that persistent gaps continue to expose Kenya to international scrutiny and economic risk.
The call was made on Monday during the vetting and approval hearing of Naphtaly Rono, the nominee for Director General of the Financial Reporting Centre (FRC), at Parliament Buildings.
Lawmakers said the appointment comes at a critical moment as Kenya works to strengthen its anti-money laundering and counter-terrorism financing regime following its recent grey-listing.
Committee Chairperson Francis Kuria Kimani reminded the nominee that Kenya has been grey-listed twice, in 2010 and again in 2024, with far-reaching consequences for cross-border transactions and investor confidence.
“As you’re aware, the country has been grey-listed twice. This grey listing affects the cost and the ease of doing business because, when a country is grey-listed, all financial transactions beyond its borders face heightened scrutiny, causing delays and affecting the ease of doing business,” said Kimani.
He urged Rono to prioritise reforms if approved by Parliament.
“If you find favour with this Committee and the House, and you get appointed for this position, we would want you to focus on addressing the legal and administrative gaps to improve the country’s financial integrity,” the chairperson added.
During the session, legislators questioned the nominee on how he would draw on his background as an intelligence officer to intensify the fight against money laundering and terrorism financing, and to improve inter-agency information sharing, which they said remains a weak link.
In response, Rono told the Committee he had previously played a role in Kenya’s removal from the grey list while serving in the intelligence sector.
“I have served in the Anti-Money Laundering space, first as assistant director operations at the National Intelligence Service and, currently, as Deputy Director counter-intelligence,” he said.
“During this time, I served as part of the taskforce which was involved in the removal of the country from the grey list.”
He said his experience would be critical as Kenya seeks delisting once again.
“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,” he said, describing the position as “a high patriotic calling.”
Lawmakers also pressed him on tightening oversight of unclaimed and dormant assets.
Rono said he would enhance scrutiny of unclaimed bank accounts, insurance payouts and other dormant funds, working closely with institutions such as the Unclaimed Financial Assets Authority (UFAA).
“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,” he said.
The FRC, established under the Proceeds of Crime and Anti-Money Laundering Act of 2009, is the central agency mandated to receive, analyse and disseminate information on suspicious transactions.
If approved, Rono will become the Centre’s third Director General since its establishment in 2012.
