The Anti-money Laundering And Combating Of Terrorism Financing Laws (amendment) Bill, 2025

SPECIAL ISSUE

Kenya Gazette Supplemen No.24(Narional Assembly Bills No.5)

REPUBLICOFKENYA

KENYA GAZETTESUPPLEMENT

NATIONALASSEMBLYBILLS,2025

NAIROBI,11thFebruary,2025

CONTENT

Bill for Introduction into the National Assembly-

The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill,2025

PAGE

63

THEANTIMONEYLAUNDERINGAND COMBATINGOFTERRORISMFINANCINGLAWS (AMENDMENT)BILL,2025

ABill for

AN ACT ofParliament to amend the laws relating to

anti-money launderingand combatingof terrorism financingand proliferation financing: and for connectedpurposes

ENACTED byParliament ofKenya,asfollows-

• 1.This Act may be cited as the Anti-Money
• Laundering and Combating of Terrorism Financing Laws (Amendment) Act,2025.
• 2.The laws specified in the first column of the
• Schedule are amended in the provisions specified in the secondcolumnthereof.inthe mannerrespectively specified in the third column.

Written law

The Proceeds s.2 of Crime and Anti-Money Laundering Act (Cap.59A)

SCHEDULE

Provision Amendment

Insert the word "General" immediately aftertheword "Director"in the definition of the words"Ageney Director".

Delete the words "Agency Director" appearing in paragraph (c)in the definition of thewords "authorised officer" and substitute thereforthe words "Agency Director-General.

Inthe definition of "designated non-financial businesses or professions"

• (a) delete the words "dealing in"appearing in paragraph (c)and substitutetherefor the words"dealers in";

Shon ide.

Amendment of writen laws, No.18af2013.

• (b) delete the words "dealing in"appearing inparagraph.(d)and substitutetherefor the words"dealers in":
• (c) by deleting paragraph (f).

Insert the following new proper

definitions in alphabetical sequence

"dealer inprecious stones or metals" includes a person engaged in-

• (a)the of metals, or
• production precious precious slones miningoperations;
• (b)intermediate buying and brokering of precious stones and precious metals,
• (c)the cutting.polishing of and
• and refining precious stones precious metals:
• (d)the manufacturing of jewellery:
• (e)the retail selling of and
• precious stones precious metals.

"Public Benefit Organizations Regulatory Authority" means the Public Benefit Organizations Regulatory Authority cstablished under section 34of the Public Benefits Organizations Act,2013.

s.11

Delete subsection (1)and substitute therefor the following new subsection-

• (1)A reporting institution that fails to comply with any requirements of sections 44,45, 46.47and47Aorof any regulations,commits an offence.

s.12(6) Delete the words "Agency Director"wherever they appear and substitute therefor the words "Agency Director-General".

s.24B(1) Insert the words "the requirements ofthis 店 Acl." immediatelyafter the words "comply with".

s.36C(f) Insert the words "where applicable"immediately before the word"to undertake"

s.36D Deleting subsection (1) and substituting therefor the followingnew subsection-

• (1) The Centre, supervisory bodies and the self regulatory body shall, in fulfilling their obligations to effectively monitor rreporting institutions,usearisk-based approach.

Delete subsection (2)and substitute therefor the following

new subsection-

• (2) The Centre, supervisory bodics and the self regulatory body applying a risk-based approach to supervision, ensure that

2. shall,in they-

s.6D(2)(c)

• Delete subparagraph (i) and substitutetherefor the followingncw subparagraph
• (i)the money laundering business Centre's,
• terrorist financing and proliferation financing risks,and the policies internal controls and procedures associated with the activities of a reporting institution,as identified by the. supcrvisorybody's or self regulatory body's assessment of its risk profile:

Delete subparagraph and substitutetherefor the followingnew subparagraph-

• (ii)the risks of money laundering.terrorist financing and proliferation financing inthe country as identified within any information that is made available to the Centre,a supervisory bodyor theself regulatory body:and

Delete subsection (3)and

substitute therefor the following new subsection-

• (3) The Centre, supervisorybodyortheself regulatory body shall review the assessment the money

s.36D

8.48

laundering.terrorist financing and proliferation financing risk profile ofa reporting institution or group including the risks of non-compliance periodically, and when there are major cvents Or developments in the management and operations of thereporting institution or group,

after paragraph (b)-

Insert the following new paragraph immediately

(c) dealersinprecious metals and dealers in precious stone when they engage in any cash transaction with acustomerequal to or above fifteen thousand US Dollars.

s.53 Delete the marginal note and substitute thereforthe followingnew marginal note-

Director-General

The Agency and Agency

s.53(2)

Delete the words"Agency Director"and substitute thcrefor the words"AgencyDirectorGeneral".

Delete the words "Agency Director"andsubstitutetherefor the words "AgencyDirector-

s.53(2A) General".

s.53(3) Delete the words "Agency Directorand substitute therefor the words"AgencyDirector-

s.53(4)

General".

Delete the words"Agency Directorand substitute therefor the words"AgencyDirector- General"

s.53(5) Delete the words "Agency

S.53A(3)

Director"wherever they appear and substitute thercfor the words "AgencyDirector-General".

Delete the words"Agency Director"and substitute therefor the words"AgencyDirectorGeneral".

s.53A(4)

Delete the words"Agency Director" and substitute therefore the words"Agency Director-General".

s.53A(5) Delete the words "Agency Director" and substitute therefore the words "Agency Director-General".

S.53A Insert the following new subsection immediately after subsection (5)-

(5A)The Agency DirectorGeneralmaydesignate such number of staff of the Agency investigatorsto conductan investigation on behalf of the

Agency.

s.54A(5) General".

Delete the words"Agency Director"and substitute therefor the words"AgencyDirector-

s.54C(3)(a Director"andsubstitute therefor the words"AgencyDirector-

Delete the words"Agency General".

s.54F(1) Delete the words "Agency Directorand substitute therefor the words "AgencyDirector- s.54F(2)

Director"wherever they appear and substitutethereforthe words "Agency Director-General"

General"

Delete the words"Agency

S.55A Insert the word "Agency immediately aflertheword "Recovery"inthe marginal note.

s.55A(1) Insert the word "Agency" immcdiately after theword "Recovery inthe opening statement.

s.55A(1)(k) Delete the words "Agency Director" and substitutethe words "Agency DirectorGeneral"

S.55G

s.61(1) Delete the words "Agency Directorand substitute therefor the words "Agency DirectorGeneral"

Delete.

s.61(5)(ii) Delete the words "Agency Director"andsubstitute therefor the words "AgencyDirectorGeneral"

S.64(1)

Delete the words "Agency Director"and substitute therefor the words "AgencyDirectorGeneral".

Delete the words "Agency Directorand substitute therefor the words "Agency Director-

s.64(7) Delete the words"Agency Directorand substitute therefor the words "Agency Director-

s.64(6) General".

General".

s.64(8) Delete the words "Agency Directorand substitute therefor the words"AgencyDirector- General"

s.67(1) Delete the words "Agency Director"and substitute therefor the words"AgencyDirectorGeneral"

5.67(2)

Delete the words "Agency Director"and substitute therefor the words "AgencyDirectorGeneral".

s.68(1) Delete the words "Agency Director"andsubstitute therefor the words"AgencyDirectorGeneral".

s.71(1) immediately afterthewords

Insert the words "Agency Director-General Or an investigator of the Agency "police officer".

s.75(2) Director" and therefor the words "Agency

Delete the words "Agency substituting Director-General".

s.82(1) Delete the words"Agency Directorand substitute therefor General"

s.83(1) Delete the words "Agency Directorwhcrever they appear and substitutetherefor the words "AgencyDirector-General".

Delete the words "Agency Directorand substitute therefor the words"AgencyDirector-

s.83(4) General".

s.85(1) Insert the words "Agency

Dircctor-General or investigator of the Agency s.86(1)

immediatelyafter thewords "'police officer".

Delete the words "Agency Directorand substitute therefor the words"AgencyDirector-

s.86(1)(a) Delete the words"Agency Director"and substitute therefor the words "Agency Director-

General".

General".

Delete the words"Agency thewords "Agency DirectorGeneral".

s.90(1) Director"and substitute therefor

s.90(2) Delete the words"Agency Director" and substituting therefor thewords "Agency Dircctor-General".

General"

s.93(4) Delete the words "Agency Director"and substitute therefor the words "Agency Director-

s.93(5) Delete the words "Agency Director"andsubstitute therefor the words "AgencyDirectorGeneral".

Delete the words"Agency Director"and substitute therefor the words"AgencyDirector-

s.94(5) Delete the words"Agency

s.94(4) General".

Dircctor"and substitute therefor the words "AgencyDirectorGeneral".

s.95(1) Delete the words "Agency Directorand substitute therefor the words "Agency DirectorGeneral".

s.95(2) Delete the words "Agency Director"and substitute therefor the words"AgencyDirectorGeneral".

s.99(1) Delcte the words"Agency Director'and substitute therefor the words"AgencyDirectorGeneral"

s.103(1) Insert the words "Agency Director-General or an investigator of theAgency" immediatelyafterthewords "police officer",wherever i appears.

s.103(2) Insert the words "Agency

Director-General or an investigatoroftheAgency immediatelyafter thewords "police officer".

s.103(3) Insert the words "Agency an

Director-General J0 investigator of the Agency immediatclyafterthewords "police officer".

s.105(1) Insert the words "Agency an

Director-General or investigator of theAgency" immcdiatelyafter the words "police officer".

s.106(1)

Insert the words "Agency Director-General or an investigator of theAgency immcdiatelyafter the words "police officer"

s.107(1) Director-General or an investigator of theAgency immcdiatelyafterthewords

Insert the words "Agency "police officer",wherever it

appears.

s.107(2) Insert the words "Agency

Director-General or. an investigator of the Agency" immediately after the words "police officer"

S, Insert the words "Agency 107(3)(c)Director-General or an investigator of the Agency immediately afterthe words "police officer"

s.124(3) Delete the words "Attorney-General" and substitutethereforthewords "Agency Director-General"

s.107(5) Insert the words "Agency Director-General Or an investigator of the Agency immcdiatelyafterthewords "police officer",whereverit appears.

s.130C Delete the words"Agency Director" and therefor the words "Agency

s.134 Inserting the following

substituting Director-General"

new subsection immediately after subsection (2)-

• (3)Any Regulations made under thissection may provide, in respectofanycontravention thereof Or non-compliance therewith,for theimposition of a sanction including-

(a) in the case of a natural imprisonment not

• person, fora term exceeding seven years ora fine not exceeding

First

Schedule

Prevention of s.2 Terrorism Act

(Cap.59B)

5.5A

ten million shillings,or

to both:and

(b)in the case of a body corporate,a fine not exceeding rwenty million shillings.

Delete paragraph (g).

Insert the following new definitions in proper alphabetical sequence-

"Sanctions Committee" meansacommitteeofthe Security Council of the United Nations established undera Resolutionof the Security Council:

"terrorism financing" includesan offencc under section5and5Aof the Act.

Renumberthe existing provision as subsection (1).

Insert the following new subsection immediately subsection(1)-

(2)A person who commits an offence under subsection (1) shall be liable,upon conviction, toimprisonment fora term not exceedingtwenty yearsinthe caseofanaturalpersonora finc not exceeding twenty million shillings in the case of a legal person.

s.29

Delete the words"who is a member of a terrorist group or"

s.30

Delete the words “held on behalf of a person".

S.30H(1)

Delete

the expression

"14A",

s.36A(1)

Insert the words puB, terrorism financing" immediately aftertheword "terrorism"

s.36A(3)

Insert the "and terrorism financing immediately afterthe:word "terrorism".

S.40E(2) Insertthefollowingnew paragraph immediately after paragraph (a)-

(aa)proposepersonstothe relevant Sanctions Committee:

S.42A

Delete and substitute therefor with the following seclion

Role ofthe

42A. (1) The Financial Reporting Centre,supervisory bodies and self- regulatory body shall have the power to-

Financial

Reporing

Centre,

supervisary

boxdies and

self-

regulatory

body.

• (a)supervise and enforcethe application
• of preventative measuresto combat the financing of terrorism and combat the financingof proliferation acts by reporting

Cap.59A.

institutions;

• (b)supervise and enforcethe implementati on of targeted financial sanctions by reporting institutions.
• (2) For the purpose of this section-
• (a)"preventative measures" include measures under PART IVofthe Proceedsof Crime pue Anti-Money laundering Act:
• (b)"supervisory body" has the meaning assigned to it under section 2ofthe Proceedsof Crime and Anti-Money Laundering Act:

(c)"self-

regulatory body" has the"meaning assigned to it under section s.50

• 2of the Proceed of Crime and Anti-Money Laundering Act; (d)"targeted financial means both assets freezingand prohibitions to prevent funds Or other assets from being made available directly or indirectly for the benefit of designated entities,

Delete subsection (4)and substitute therefor thefollowing new subsection-.

• (4)Any Regulations made under this sectionmayprovide, thereof or non-compliance thercwith,forthe imposition of
• inrespect ofanycontravention a sanction including-
• (a) in the case of a natural person, imprisonment fora term nol cxceedingten years; and

Betting Lolteries and

Gaming Act

(Cap 131)

s.2

Cap.59B. New

(b)in the case of a legal person,afine not exceeding twenty million shillings.

Insert the following new

definition in proper alphabetical sequence-

"terrorism financing"has themeaning assigned to itunder

thePrevention ofTerrorismAct.

• a)Inser the following new sections immediately after section 29-

Powersof and

29A. (1) 2A,36A.36Band 36Cofthe Procceds ofCrime and AntiMoney Laundering Act,the Board shall regulate, supervise enforce compliance for antimoney laundering, combating the financing terrorism countering proliferation

anti-money laundering countering the financing of temorism purposes,

Cap.S9A.

and of and financing purposes by all reporting institutions regulated and supervised by the Board andto whom theprovisions oftheProceedsof Crime and Anti- Cap.59A

MoneyLaundering Act apply. (2)In

undertaking

its

mandate

under

subsection(l).the

Board may-

• (a)vet proposed significant shareholders, proposed beneficial owners, proposed directors,and senior employees of reporting institution:
• (b)conduct onsite inspection:
• offsite surveillance:
• (d)undertake consolidated supervision ofa reporting institution;
• (e)compel the production of any documentor information the Board may require for the purpose of discharging

its

supervisory

mandate

under the

Proceeds

of

Crime pue

Anti-Money

Act:

Laundering

impose

monctary.

civil or

administrativ

• esanctions for violations related 1o anti-money laundering. combating the financing ofterrorism orcountering proliferation financing purposes;

(g)issue

regulations, guidelines, directions, rules or instructions for antimoney laundcring, combating the financing ofterrorism and countering proliferation financing Cap.S9A

purposes;

• (h)co-operate and share information for antimoney laundering, combating the financing ofterrorism and countering proliferation financing purposes; and
• 1take such action as is necessaryto supervise and enforce compliance byreporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act and any regulations, guidelines, rules. instruction or direction made or issued thereunder.
• (3)Forpurposes of this section,

Cap.59A.

Penalties for violations relating to money laundering and terrorism financing-

"reporting

Proceedsof Act

institution"has the meaning assigncd to itunder section 2of the Crime -nuvpue Money Laundering

29B. (1)No director, officer, employer,agentor any other person in the company shall violateorfailto comply with the regulations, guidelines, directions, rulesor instructions issued for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes.

• (2)A person who violates or fails to comply with the provisions of subsection (1) shall be liable-
• (a)in case of a legal person, toa penalty not exceeding fivemillion shillings:
• (b) in the case of

Retirement

Bencfits Act (Cap.197)

s.2

Cap.59B.

New B natural person,toa penalty not exceeding onemillion shillings:and (c)to additional penalties not exceeding onehundred thousand shillings in each case for each dayor partthereof during which such violation or noncompliance continues.

Insertthefollowingnew definition inproper alphabetical sequence-

"terrorism financing"has

the meaningassigned to it under thePreventionofTerrorismAct.

Insertthe followingnew after

sections immediately section7-

Powersof aoti-money lnundering and countering the financing of terrorism purposes.

7A.(1)Pursuant to sections 2A,36A, 36Band36Cofthe Proceeds ofCrime and Anti-Money Laundering Act,the Authority shall regulate, supervise and enforce compliance for anti- Cap.59A.

laundering,

undertaking its mandate under Authority may-

money combating the financing of terrorism and countering proliferation financing purposes by all reporting institutionsregulated andsupervisedby theAuthorityandto whom theprovisions oftheProceedsof Crime and AntiMoney Laundering Act apply. (2)ln subseclion (1).the

• (a)vel proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers ofa reporting institution:
• (b)conduct onsite inspection;
• (c)conduct offsite surveillance;

Cap.59A.

• (d)undertake consolidated aninstitution
• supervision of and its group:
• (e)compel the production of any document or information the Authority may require for the purpose of discharging its supervisory mandate under theProceeds ofCrime and Anti-Money Laundering Act;
• (f)impose monetary. civil or administrative sanctions for violations related to antimoney laundering. combating the financing of terrorism or countering proliferation financing purposes;

(g)issue Cap.59A.

• regulations, guidelines, directions, rules or instructions for antimoney laundering, combating the financing of terrorismand countering proliferation financing purposes:
• (h)co-operateand share information for antimoney laundering. combating the financing of terrorism and countering proliferation financing purposes;and
• (i)take such action asis necessary to supervise and enforce compliance by reporting institutions in line with the provisionsof theProceeds

Cap.59A.

Pennlties for violations relatingto money laundering and tertorism financing.

ofCrime and

Anti-Money Laundering Actand any regulations, guidelines, rules, instruction or direction made or issued thereunder.

• (3) For purposes ofthis section, "reporting institution"has the meaning assigned to itunder section 2of the Proceeds of Crime and AntiMoney Laundering Act.

7B (1)No managcr,

member, custodian, administrator or any scheme or scheme fund shall violate or fail to comply with the regulations, guidelines, directions.rulesor instructions issued for anti-money laundering, combating the financing of terrorism and

countering Mining Act S.4 (Cap.306)

proliferation financing purposes.

• (2)A person who violates or fails to comply with the provisions of subsection (1) shall be liable-
• (a)in case ofa legal person, toapenalty not exceeding fivemillion shillings
• (b)in the case of person,toa nOL
• a natural penalty exceeding one million shillings:and
• (c)to additional penalties not exceeding onehundred thousand shillings in each case for cach dayor partthereof during which such violation or noncompliance continues.

Insertthefollowingnew definition inproper alphabetical sequence- Cup.59B.

New

"terrorismfinancing"has themeaning assignedto under thePreventionofTerrorismAcl.

Insertthefollowingnew sections immediately after section16-

Powersof

16A.

Director

the

for anti-

money

launderin

gand

counterin

gthe

of

financing

terrorism

purposes.

Cap. 59A.

(1)

Pursuant to sections

2A,36A.36Band

36Cof the Proceeds

of Crime and Anti-

Money Laundering

Act,the Director of

Mines shall regulate,

supervise and

enforce compliance

anti-money

for

combating

laundering,

financing

terrorism

countering

proliferation

financing purposes by all reporting institutions regulated and supervisedby the Director of Mines and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering apply.

(2)In undertaking ils mandate under subsection (l).the Directorof Mines

the

of

and Cap.59A.

may 一

• (a)vetproposed mineral rights holders andmineral dealers ofa reporting institution:
• (b)conduct onsite inspection;
• (c)conduct offsite surveillance;
• (d)undertake consolidated supervision of mineral rights holders and mineral dealers;
• (e)compel the production of any documentor information the Director may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering

Act;

• (g)issue

impose monetary, civil Or administrativ e sanctions for violations related 01 anti-money laundering, combating the financing ofterorism or countering proliferation financing purposes: regulations, guidelines, directions, rules or instructions for antimoney laundering, combating the financing ofterrorism and countering proliferation financing purposes;

• (h) co-operate and share for

information antimoney Cap.59A

Cap.59A

• laundering, combating the financing ofterrorism and countering proliferation financing purposes; and (i)take such action asisnecessary tosuperviseand enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act and any regulations, guidelines, rules, instruction or directionmade or issued thereunder. (3) For purposes ofthis section, "reporting institution"hasthe meaningassigned to itunder section2of the Proceedsof Crime and AntiMoney Laundering

Penalties for violations relating to mooey launderio and terrorism finaneing.

Act

16B. (1)No mineral rights holders ormineral dealers or their agentsshallviolate orfailtocomply withtheregulations, guidelines, directions,rules or instructions issued for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes.

• (2)A person whoviolatesorfails tocomply with the provisions of subsection (l) shall be liable-
• (a)in case ofa legal person,
• toa penalty not exceeding five million shillings:
• (b)in the case of natural person,to a not million
• penalty exceeding one shillings:and
• (c) to additional penalties not

Sacco Societiess.2

Act(Cap. 490B)

Cap.59B. New exceeding one hundred thousand shillings in each case for cachdayor part thereof during which such violation or noncompliance continues.

Insert the following definitionin proper alphabetical sequence-

"terrorismfinancing"hasthe meaning assigned to under the

PreventionofTerrorismAct,

Insert the following Mau sections immediately after section7-

Powersof Authority for Aauow-rne laandering and countering the financing of temorism purposes.

Cap.59A:

7A.(l)Pursuant to sections 2A.36A 36Band36Cof the Proceeds of Crime and Anti-Money Laundering Act,the Authority shall regulate, supervise and enforce compliance for antimoney laundering, combating financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervisedby theAuthorityandto whomtheprovisions of the Proceeds of Crime and AntiMoney Laundering Act apply.

its mandate under subsection (l),the Authoritymay-

(2)In undertaking

• (a)vetproposed directors and
• significant shareholders, proposed beneficial owners, proposed senior officers ofa reporting institution;
• (b)
• conduct onsite inspection;
• C conduct offsite
• surveillance;
• undertake (d) consolidated an institution
• supervision of and its group:
• e compel the production of any document orinformation the Authority may require

Cap.59A.

• 中 impose

for the purpose of discharging its supervisory mandate under the Proceeds of Crime pue Anti-Money Laundering Act; monetary, civil or administrative sanctionsfor violations relatedtoantimoney laundering, combatingthe financing of terorism or countering proliferation financing purposes: issue regulations, guidelines, directions, rules or instructions for antimoney laundering. combating the financing of terrorismand Cap.59A:

countering

proliferation financing purposes:

• (h)co-operate and share information for antimoney laundering. combating the financingof terrorismand countering proliferation financing purposes;and
• take such actionasis necessary to supervise and enforce compliance by reporting institutionsin line with the provisionsof the Proceeds ofCrime and Anti-Money Laundering regulations, guidelines, rules, instructionor direction made or issued

Cap.59A.

Penalties for violations relatingto money laandering and terrorism

financing.

thereunder.

• (3)For purposes this section, "reporting institution" has the meaningassignedto itundersection2of theProceeds of Crime and AntiMoney Laundering Act

7B. (1)No member, director, officer, employer, agent or any other person in a Sacco societyshallviolale orfailtocomply with theregulations, guidelines,

directions,rulesor instructions issued for anti-money laundering.

the

financing

combating

terrorism

countering

proliferation

financing purposes.

• (2)A person who violates or fails tocomply with the provisions of subsection (1) shall be liable-
• (a)in case ofa legal person. toa penalty not

of

and Accountants s.2(1) Act (Cap 531)

Cap.59B.

exceeding fivemillion shillings;

• (b)in the case of a natural person,toa penalty not exceeding one million shillings:and
• (c)to additional penalties not exceeding one hundred thousand shillings in each case for each day or partthereof duringwhich such violation or noncompliance
• conlinues.

Insertthe followingnew definition in proper alphabetical

sequence-

"terrorism financing"has the meaning assigned to under the

Prevention of Terrorism Act

Insert the following new immediately after

sections section8-

Powersof 8A, (1) Institute for Pursuant to sections sauom-ne launderingand2A,36A,36B and countering the36Cof the Proceeds financingof of Crime and Antiterrorism MoneyLaundering purposes.

Cap.59A

Act, the Institute shall regulate, supervise and cnforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes byall reporting institutionsregulated and supervised by the Institute and to whom theprovisions oftheProceedsof Crime andAntiMoney Laundering Act apply.

(2)In undertaking its mandate under subsection (1).the Institute may-

• (a)vet proposed mcmbers ofa reporting institution:
• (b)conduct onsite inspection,
• (c)conduct offsite surveillance:
• (d)undertake consolidated
• supervision of amember of

Cap.59A.

the Institute:

• (e)compel the production of any document orinformation the Institute may require for the purpose of discharging its supervisory mandate under theProcceds ofCrime and Anti-Money Laundering Act;
• (f)impose monelary, civil Or administrative sanctions for violations related to antimoney laundering. combating the financing of terrorism or countering proliferation financing
• purposes;
• (g)issue regulations, guidelines, directions, rules or

instructionsfor Cap.59A.

anti-money laundering. combating the financing of terrorism and countering proliferation financing purposes:

• (h)co-operateand share information for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes:and
• G) take such action as is necessary to supervisc and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act and any regulations, guidelines,

Cap.59A

Penalties for violations relatingto mobey laundering and terorism finaocing.

instructionor

direction made or issued

thereunder.

(3) For

• purposes of this section, "reporting institution"has the meaningassigned to itunder section 2of the Proceedsof Crime and AntiMoney Laundering Acl

8B. (1) No member ofthe Institute or 日 member. director, officer, employer, agcnt or any other person in the Council,

Registration Board or the Examination Board shall violate orfailtocomply with the regulations. guidelines,

directions,rules or

instructions issued

for.

laundering,

anti-money

combating

financing

terrorism

countering

proliferation

financing purposes.

• (2)A person who violales or fails tocomply with the

the

of

and Estate Agentss.2(1) Registration Act (Cap.533)

Cap.59B, New

provisions of subsection (l)shall be liable-

• (a)in caseofa legal person, toa penalty not exceeding five million shillings;
• (b)in the case ofa
• natural person, toapenalty not exceeding auo million shillings;and
• (c)to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or noncompliance continues.

Insert the following new

definition in proper alphabetical sequence-

"terrorism financing"has

the meaningassigned to itunder thePreventionof Terrorism Act.

Insert the following new sections immediately afler

section27-

Powersof 28(1) Pursuant

the Board for anti-money laundering and countering ofterorism purposes.

Io sections 2A,36A, 36B and 36Cof the Proceedsof Crime Laundering Act,the and

undertaking Boardmay-

Anti-Money Board shall regulate, supervise enforce compliance for anti-money laundering. combating the financing of lerrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Board and to whom theprovisions oftheProceedsof Crime and AntiMoney Laundering Act apply. (2)In its mandate under subsection (1).the

• (a)velproposed members including beneficial owners ofa reporting institution:
• (b)conduct onsite
• inspection;

Cap.59A.

• (c)conduct offsite surveillance;
• (d)undertake consolidated supervisionof
• a reporting institution;
• (e)compel the productionof any document orinformation the Board may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering

Act,

• imposemonetary.civil or administrative sanctions:forviolations related toanti-money laundering. combating the financing of terrorism or countering proliferation financing purposes;
• (g)issue regulations, guidelines. directions, rules Or

Cap.59A.

instructions

for antimoney laundering. combating the financingof terrorismand countering proliferation financing purposes:

• (h) co-operate and share information for antimoney laundering, combating the financing of terrorismand countering proliferation financing purposes:and
• D take such action as is necessary to superviseand enforce compliance by reporting institutionsin line with the provisionsof theProceeds of Crime and Anti-Money Laundering

regulations, guidelines, rules, instruction or direction made or issued thereunder.

• (3)For purposes

Cap.59A.

Penalties for violations relatingto money laundering and terrorism financing:

• of this section, "reporting institution" has the meaningassigned to itundersection2of Proceedsof Crime and AntiMoney Laundering Act

29. (1) No member ofa reporting institution shallviolateorfail to comply with the regulations,

guidelines,

directions,rulesor

instructions issued

for anti-money

combating

laundering.

the

financing

terrorism

countering

proliferation

financing purposes.

• (2)Aperson whoviolatesor fails to comply with the provisions of subsection (l)shall be liable-

of

and

Certified s.2(1) Public Secretaries of Kenya Act (Cap.534) Cap.S4B.

New

• (a)incase ofa million
• legal person,to apenalty not exceeding five shillings;
• (b) in the case ofa natural person, exceeding one
• to a penalty not million shillings;and
• (c)to additional penalties not exceeding one hundred thousand shillings in each case for cach day or part thereof during which suchviolation or noncompliance continues,

Insert the following new

definition in proper alphabetical sequence-

"terrorism financing"has the meaning assigned to it under the Prevention of Terrorism Act.

Insert the following new after

sections immediately section7-

Powersof Institute for anti-money laundering and countering the financing

7A.(1)Pursuant to sections 2A,36A 36B and 36Cof the Proceeds ofCrime and Anti-Money ofterrorism purposes, Cap.59A.

Laundering Act,the Institute shall regulate, supervise and enforce complianceforantimoney laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutionsregulated and supervised by theInstituteandto whomtheprovisions oftheProceedsof Crime and AntiMoney Laundering

Act apply.

its under subsection (1),the

(2)In undertaking mandate Institute may-

• (a)vet proposed members ofa
• reporting institution;
• (b)conduct onsite inspection:
• (c)conduct offsite
• surveillance;
• (d)undertake consolidated supervision of
• amember of

Cap.59A.

the Institute;

• (e)compel the productionof any document or information the Institute may require for the purpose of discharging its supervisory mandale under the Proceeds of Crime and Anti-Money Laundering Act;
• (f)impose monetary.civil or administrative sanctions for violations related to antimoney laundering, combating the financing of terrorism or countering proliferation financing purposes;
• (g)issue regulations, guidelines, directions, rules Or instructions for

Cap.59A

anti-money laundering, combating the financing of terrorism pue countering proliferation financing purposes:

• (h)co-operateand of and
• share informationfor anti-money laundering, combating the financing terrorism countering proliferation financing purposes;and
• (i)take such action asis necessary to supervise and enforce complianceby reporting institutions linewiththe provisions of theProceedsof Crime and Anti-Money Laundering regulations, guidelines, rules,

Cap.59A.

Penalties for

violations relating to money laundering financing.

instructionor direction made or issued thercunder.

(3) For purposes ofthis section, "reporting institution"has the meaning assigned to itunderseclion2of the Proceeds of Crime andAntiMoney Laundering Act

7B. (1) No member ofthe Institute or a member, director, officer, employer, agent or any other person in the

Council,

Registration Board or-the Examination Board shall violate orfailto comply with the regulations, guidelines,

directions,rulesor

instructions issued

for

laundering.

anti-money

combating

financing

terrorism

countering

proliferation

financing purposes.

comply with the

(2)Aperson who violates orfails to

the

of

and PublicBencfits s.2 Organizations Act,2013(No. 18of2013)

Cap.59B.

8.3

provisions of subsection (l)shall be liable-

• (a)in case ofa legal person, toa penalty not exceeding five million
• shillings;
• (b)in the case of natural pcrson,oa not exceeding one
• a penalty million shillings; and
• (c)toadditional penalties not exceeding one hundred thousand shillings in each case for eachdayor part thereof during which such violation or noncompliance continues.

Insert the following new

definition in proper alphabetical sequence-

"terrorism financing"has

the meaning assigned to under thePreventionofTerrorism Act.

Insert the following new paragraph immediatelyafter

paragraph (h)- New

• (i)provide mechanisms that safeguard public benefits organisations from the money laundering, terrorism financing or proliferation financing.

Insertthe followingnew sections immediately after section43-

Powerofthe Authority to pablic atriskof terrorism fimancing.

43A.(1)The Authority shall have

powerstooversight organisationsandmonitor public benefit organizations that are at risk of terrorism financing andin particular shall-

• (a)periodically identify organizations that are likely to be at risk of terrorist financing abuse;
• (b)periodically conduct an: assessmentof the terrorism financing risks posed to such public benefit organizations:
• (c)develop focused, proportionate

and risk-based actions to address terrorism financing risks identified in paragraph (b);

• (d)ensure that the measures developed in paragraph (c) do not underminethe legitimate operationsof public benefit organizations.

(2)The

Authority shall ensure effective cooperation, coordination and information-sharing onpublic bencfit organizations at riskoflerrorism financing with the Financial Reporting Centreandrelevant law enforcement authorities.

(3)The Authority shall have the power to issue regulations, guidelines. directions,rules or instructions for the publie benefit organisation that have been identified tobe at risk

(4) The Authority Aeu impose monetary, civil or administrative sanctions for violationsunderthe Aet.

(5) The Authority may impose monetary, civil or administrative sanctions for violationsunderthe Act.

MEMORANDUMOFOBJECTSANDREASONS

The Bill seeks to amend various Acts ofParliament relating to antimoney laundering,countering the financing of terrorism and countering the financing ofproliferation ofweapons of mass destruction in addressing the technical compliance deficiencies identificd arising from the Eastern and Southem Africa Anti-Money Laundering Group (ESAAMLG)rerating and review by Financial Action Task Force and malters incidental thereto.

The Bill seeks to amend the followinglaws-

The Proceedsof Crimeand Anti-Money Laundering Act (Cap.59A)

The Bill seeks to amend the Proceeds of Crime and Anti-Money Laundering Act by adopting the title Director General,the head ofthe Asset Recovery Agency.to align with other investigative agencies in the Country.

ThePrevention of Terrorism Act(Cap.S9B)

The Bill proposes to amend the Prevention of Terrorism Act to

expand the definition of "terrorism financing to include the offences stipulated under scctions 5 and 5A of the Act.Further to this,the amendment seeks to align various provisions of the Act with FATF standards.

BettingLotteries and Gaming Act(Cap.131)

The Bill contains amendment to the Betting Lotteries and Gaming Act to empower and allow the Betting Control and Licencing Board to regulate and supervise cntities that fall within its jurisdiction for antimoney laundering.counter financing of terrorism and counter proliferation financing-

The Retirement Benefits Act(Cap.197)

The Bill secks to amend the Retirement Benefits Act by strengthening the mandate of the Retirement Benefit Authority toregulate. supervise and cnforce compliance of the entities under its watch for antimoney laundering,counter financing of tcrrorism and counter proliferation

financing-

TheMiningAct (Cap.306)

The Bill contains amendment to the Mining Act to empower the Director of Mining.and in discharge of his functions,to regulate, supervise and enforce compliance ofthe persons under his supervision for anti-money laundering.counter financing of terrorism and counter proliferation financing.

The SACCO SocietiesAct (Cap.490B)

The Bill seeks to amend the SACCO Societies Actby empowering Sacco Societies Regulatory Authority to regulate and supervise bodies under its purview for anti-money laundering,counter financingof terrorism and counter proliferation financing.

The Accountants Act (Cap.531)

The Bill proposes to amend the Accountants Act to empower and

allow the Institute of Certified Public Accountants of Kenya to,in discharge of its duties,regulate and supervise matters relating to antimoncy laundering.counter financing of terrorism and counterproliferation financing.

Estate Agents Act (Cap.533)

The Bill seeks to amend the Estate Agents Act to empower the Estate Agents Registration Board toregulate and supervise cntities that fall within its jurisdiction for anti-money laundering.counter financing of terrorism and counter proliferation financing.

The Certified Public Secretaries ofKenya Act (Cap.534)

The Bill proposes to amend the Certified Public Secretaries Act to

strengthen the Institute of Certified Public SecretariesofKenya to closely regulate and supervise issues relating to anti-money laundering.counter financing of terrorism and counter proliferation-financing.

ThePublicBenefits Organizations Act,2013 (No.18of2013)

The Bill secks to amend thc Public Benefits Organisation Act to

empower andallow the Public Benefits Regulatory Authority to oversight and monitor public bcnefits organisations that are al risk of terrorism financing in the Country.

Datedonthe1lthFebruary.2025.

KIMANIICHUNG'WAH, Leader of theMajorityParty.

Section 2of Cap.59Awhichirisintended1oamend-

2.Interpretation

In this Act,unless the context otherwise requires-

"account"includes any facility or arrangement by which a reporting institution does any one ormore of the following

• (a)accepts deposits ofmonetary instruments;
• (b)allows withdrawals of monetary instruments or transfers into or out of the account;
• (c)pays cheques or paymcnt orders drawn on a financial institution or collects cheques orpayment orders on behalf of any person;
• (d)supplies a facility or arrangement for a safety or fixed term deposit box;

section 17of the Govermment Financial Management Act (Repealed):

Advisory Board"means the Asset Recovery Advisory Board establishedundersection55A:"

affected giftmeans any gifi made by the defendant at any time,if it was agift of property-

• (a)received bythat defendant inconnection with an offence commiitted by him or any otherperson;or
• (b)any part thereof,which,directly or indirectly represents,in that defendant's hands,the property which that person received in that connection with an offence:

Provided that any such gift was made on-or afler the commencement of this Act;

"Agency" means the Assets RecoveryAgencyestablished under section 53(1):

• "Agency Director"means the Director of the Agency appointed under section53(2);

"authorisedofficer"means-

• (a)a police officer;
• (b)an officer ofthe depariment of theKenya Revenue Authority for the time beingresponsible formattersrelating to customs;
• (c)Agency Director;or

• (d)any person or class of persons designated by the Cabinet Secretary asan authorised officer to perform any function under
• thisAct;

"Board"means the Anti-Money Laundering Advisory Board establishcd under section 49:

"Cabinet Secretary"means the Cabinet Secretary for the time being responsible formatters relating to finance;

"Centre"means the Financial Reporting Centre cstablished under section 21;

"competent authority"means a public authority other than a self-

regulatory body with designated responsibilities for combating money laundering,financing of terrorism and proliferation financing:

• confiscation ordermeans an order referred to in section 61;
• court"meansa court of competent jurisdiction:
• "customsor"the customsmeans the customs department of the

Kenya Revenue Authority:

"data" mcans representations,in any form,of information or concepts;

"defendantmeans a person against whom a prosecution for an offence has been instituted,irrespective of whether that person has been convicted ornot;

• "designated non-financial businesses or professions"means
• (a)casinos (including intermet casinos);
• (b)real estate agencies:
• (c)dealing in precious metals;
• (d)dealing in precious stones;
• (e)accountants who are sole practitioners,partncrs or employees within professional firms;
• (f)non-governmental organisations:
• (fa)trust and company serviceproviders;
• (fb)advocates,notaries and other independent legal professionals
• who are sole practitioners,partners or cmployeeswithin professional firms;

• (g)such other business or profession in which the risk of money laundering,financing of terrorism andproliferation financing exists as the Cabinet Secretary may,on the advice ofthe Centre.declare;

"Deputy Director"deletedby Act No.16 of2021,s.2(a):

"Director-General means theDirector-Generalappointed under section25:

"document"means any record of information,and includes-

• (a)anything on which there is writing:
• (b)anything on which there are marks,figures,symbols.or perforations having meaning for persons qualified to interpret them;
• (c)anything from which sounds,images,writings or data can be
• retrieved,with or without the aid ofanything else;or
• (d)a map.plan,drawing.photograph,video tape or similar thing:

"estate agencyin connection with the selling,mortgaging,charging, letting or management of immovable property or of any house,shop or other building forming par thereof,means doing any of the following acts-

• (a)bringing together,or taking steps to bring together,a prospcctive vendor,lessor or lender and a prospective purchaser,lessee or
• borrower,or
• (b)negotiating the terms of sale,mortgage,charge or letting as an intermediary betwcen or on behalfofcither ofthe principals;

"financial groupmeans a group that consists of a parent company or ofany other type of legal person exercising control and coordinating functions ovcr therest ofthe group.together withbranches or subsidiaries that are subject to Anti-Money Laundering and Combating of Terrorism Financing policies and proccdures at the group level;

financial institutionmeans any person or entity,which conducts as abusiness.one or more of the followingactivitiesor operations-

• (a)accepting deposits and otherrepayable funds from thepublie;
• (b)lending,including consumer credit,mortgage credit,factoring,
• transactions;
• (c)financial leasing;

• (d)transferring of funds or value,by any means,including both formal and informal channels:
• (e) issuing and managing means of payment (such as credit and debit cards,cheques,travellerscheques,money orders and bankers drafts,and electronicmoncy):
• (f)financial guarantees and commitments;
• (g)tradingin-
• (i)moneymarket instruments,including cheques,bills, certificates of deposit and derivatives:
• (ii)forcign exchange;
• (i) exchange,interest rate and index funds;
• (iv) transferable securities;and
• (v)commodity futures trading:
• (h)participation in securities issues and the provision of financial services related to such issues:
• (i)individual and collective portfolio management:
• (j)safekeeping and administration of cash or liquid securities on behalf ofother persons;
• (k)otherwise investing,administering or managing funds or money onbehalfofother persons;
• (l)underwriting and placement of life insurance and other investment related insurance:and
• (m)money and currency changing:

Provided that this applies both to insuranceunderwriter and to insurance intermediaries including agents and brokers:

"fixed date,in relation to a defendant against whom-

• (a)a prosecution for an offence has been instituted.means the date on which suchprosecution has been instituted;or
• (b)a restraint order has been made means the date of such restraints order,whichever is the earlier date;

"Fund"mcans the Criminal Assets Recovery Fund established under section 109:

"inspectormeans a person designated as such under this Act;

Kenya Revenue Authority"means the Kenya Revenue Authority established by section 3of theKenya Revenue Authority Act(Cap.469):

"Minister"deleted byAct No.16of 2021,s.2(d):

"monetaryinstruments"means-

• (a)coins and paper currency designated as legal tender of Kenya or ofa foreign country and which is customarily used and accepted asa medium ofexchange inKenya orthe country ofissue
• (b)travellerscheques,personal cheques,bank cheques,money
• orders or securities:
• (c)any other negotiable instrument which is in bearer form.or other fomm through which titlepassesupon delivery:

money launderingmeans an offence under any of the provisions of

sections3,4and7:

"offcncein this Act,means an offence against a provision of any law in Kenya,or an offence against a provision of any law in a foreign state for conduct which,if it occurred in Kenya,would constitute an offence against a provision of any law inKenya;

personmeans any natural orlegal person;

proceeds of crimemeans any property or cconomic advantage derived or realized,directly or indirectly,as a result of or in connection with an offence irrespective of the identity of the offender and includes,on aproportional basis,property into which any property derived or realized directly from the offence was latcr successively converted,transformed or intermingled,as well as income,capital or other cconomic gains or benefits derived or realized from such property from the time the offence wascommitted:

personal property ofevery description,includingthings in action or other incorporealor heritable property.whether situated inKenya or elsewhere, whcther tangible or intangible,and includes an interest in any such property and any such legal documents or instruments evidencing title to orinterest in such property;

realizable property"means-

• (a)property laundered;
• (b)proceeds from or instrumentalities used in,or intended to be used in money laundering orpredicate offences:

• (c)property that is the proceeds of,or uscd,or intended or allocated foruse in,the financing of any offence;and
• (d)property of corresponding value;

"regulations"means regulations made under this Act:

• "reporting institutionmeans a financial institution and designated non-financial business and profession;

"restraint ordermeans an order made under section 68;

• "Self-regulatory body"means the Law Society ofKenya:
• "supervisory body"means a functionary or institution specified in the First Schedule or such other functionary or institution as may be prescribed by the Cabinet Secretary;

"tainted property"in relation to an offence means

• (a)any property used in,or in connection with,the commission of theoffence:
• (b)any procceds of the offence;or
• (c)any property inKenya which is the proceeds ofa foreign offence inrespect of which an order may be registered,and when used without reference to a particular offence means taintedproperty inrelation to an arrestable offence.

Section 1lof Cap.59Awhichitisintended1oamend

11.Failure to comply with the provisions of this Act

• (1)A reportinginstitution that fails to comply with any of the requirementsof sections 44,45and46,orofany regulations,commits an offence.

Section 12of Cap.59Awhichitisintended toamend

12.Conveyance ofmonetary instruments toorfrom Kenya

• (6)An authorised officcr,other than Agency Director,shall immediately but not later than five days surrender monetary instruments seized under subsection (4)to the Agency Director in such manner as the Agency Directormay direct.

Section24Bof Cap.59A which itisintended 1o amend

24B.Powersof the Centre to impose civilpenalties for noncompliance

• (1)Without derogating from any criminal penalty or other sanction that may be imposed by this Act,where a person ora reporting institution

is in breach of,or fails to comply with any instruction,direction or rules issued by the Centre under this Act-

Section36CofCap.59Awhichitis intended toamend-

36C.Powersofsupervisory bodies

• (1)Without prejudice to the provisions of section 36A,a supervisory bodyshall havepowers--
• combating terrorism countering financing and countering proliferation financing purposes of a reporting institution and its group

Section36DofCap.59Awhich itisintended1o amend

36D.Risk-basedapproach

• (1) The Centre and supervisory bodies shall,in fulfilling their obligation to effectively monitor reporting institutions,use a risk-based approach.
• (2)The Centre and supervisory bodies shall,in applyinga risk-based approach to supervision,ensure that they-
• (c)base the frequency and intensityof on-site and off-site supervision on-
• (i)the money laundering.terrorist financing proliferation and financing risks,internaland the policies controls and procedures associated with the business activities ofa reporting institution, as identified by the Centre or supervisory bodys assessment of itsriskprofile:
• (i)therisks laundering,ofmoney terrorist financing and proliferation financing in the country as identified within any information that is made available to the Centre or supervisory body;and
• (ii)the characteristics of the reporting institution,in particular the diversity and number of such institutions and the degrce of discretion allowed to a reporting institution under therisk-based approach.
• (3)The Centre or supervisory body shallreview the assessment of the money laundering.terrorist financing and proliferation financing risk profile of a reporting institutionor group,including the risks of noncompliance periodically.and when there aremajor eventsor developments in the management and operations of the reporting institution or group.

Section48of Cap.59A whichirisintended toamend

48.Application ofreporting obligations

The obligations under thisPart shall apply to-

• (a)accountants,advocates,notaries and other independent legal professionals who are sole practitioners,partners or employees withinprofessional firms when preparing or carrying out transactions for their clients in thefollowingsituations-
• (i) buying and selling of real estate;
• managing of client money,securities or other assets:
• (ili)management of bank,savings or securities accounts;
• (iv)organisation of contributions for the creation,operation or management of companies;or
• (V) creation,operation or management ofbuying and selling of business entities or legal arrangements:or
• (b)atrust orcompanyservice provider not otherwisecovered elsewhere in this Act,which as a business,provides any of the following services tothirdparties-
• acting asa formation agent oflegal persons;
• () acting as,or arranging for another person to act as,a director similarposition in relation to otherlegalpersons;
• (ii)providingaregisteredoffice.businessaddressor accommodation,correspondence or administralive address arrangement;
• (iv)acting as,or arranging for another person to act as,trustee of anexpresstrust;
• (v) acting as or arranging for anothcr person to act as,a nominee shareholder foranotherpcrson.

Section53ofCap.59Awhichitisintended to.amend-

53.The Agency and itsDirector

• (1)There is established a body to be known as Assets Recovery Agency,which shall be a body corporate with perpetual succession and a common seal,and shall in its corporate name,be capable of
• (a)suingand being sued:

• (b)holding and alienating movable and immovable property;
• (c)borrowingand lendingmoney:
• (d)doing and performing all such other acts or things as may be lawfully doneby a body corporate.
• (2)The Attorney-General shall upon recommendation by thc Advisory Board appoint a fit,competent and proper person to be the Director of the Agency (hereinafter referred to as the"Agency Director").

(2A) The Agency Director shall hold office for a tcmm of four years and shall be eligible for re-appointment for one further term of four years.

• (3)For a person to be appointed as the Agency Director,that person shall-
• (a)hold a degree in law,finance,accounting or any other relevant degrce from a university recognised inKenya;
• (b)have at least fifteen years work experience,of which at least five shall be in seniormanagement;
• (c)meet such other requirements that may be specified bythe AdvisoryBoard.
• (4)The Agency Direetor may.with the approval of the AttorneyGeneral,obtain such number of staff on secondment and on terms and conditions of service as may be approved by the Attorney-General,and may make such arrangements for the provision of services,as he considers appropriate for or in connection with the exercise of his functions.

(5)Anything which the Agency Director is authorised or required to domaybe doneby-

• (a)a memberof staff of the Agency.or
• (b)a person providing services under arrangements made by the Agcncy Director,if authorised by the Agency Director (generally or specifically)for that purpose.

Section53Aof Cap.59A whichitis intendedtoamend-

53A.Staffof the Agency

(3) In determining the terms and conditions of service for the Agency Director and staff,the Attormey-General shall be guided by the following principles-

• (4)The Agency shall,with the approval of the Cabinet Secretary for finance,establish a suitable social security scheme for the Agency Director and staff of the Agency.

• (5)For the purposes of their functions under the Act,the Agency Director,certified forensic and financial investigators,shall have all the powers,privileges and immunities of a police officer in addition to any otherpowers they may have under the Act.

Section54CofCap.59Awhichitis intended toamend-

54C.Estimates ofexpenditure

• (3)The annualestimates shall make provisions for all the estimated expenditure of the Agency for the financial year concerned andin particular,shall provide for-
• (a) the payment of salaries,allowances and other charges in respect of the Agency Director and other staff of the Agency:

Section 54FofCap.59Awhichit isintendedtoamend

54F.Thecommon sealof the Agency

• (1)The common seal of the Agency shall be such device as may be determined by the AgencyDirector.
• (2)The common seal of the Agency shall bekept in such custody as the Agency Director shall direct and shall not be used except on the order oftheAgency Director.

Section55AofCap.59Awhichitisintendedto amend-

55A.Asset Recovery Advisory Board

• (1)There is established an advisory board to be known as the Assel Recovery Advisory Board which shall consist of--
• (k)the Agency Director,who shall be an ex-officio member of the AdvisoryBoard,

Section55GofCap.59Awhichit isintended1o amend

55G.Cabinet Secretary to make Regulations

• (1)The Cabinet Secretary shall,in Regulations,prescribe the manner ofdischarging the functions of the Advisory Board including the procedure at its meetings.
• (2)Notwithstanding the generality of subsection (l).the Advisory Board shall regulate its own procedure.

Section 6lofCap.59Awhich itisintendedto amend

61.Confiscation orders

• (1)Whenever a defendant is convicted of an offence,the court convicting the defendant shall,on the application of the Attormey-General.

the Agency Director or of its own motion,inquire into any benefit which the defendant mayhave derived from-

• (5)A court before which proceedings under this section are pending. may.in considering an application under subsection (l)-
• (i)refer to the evidence and proceedings at the trial;
• (ii)hear further oral evidence or take documentary evidence as the court may deem fit;
• (ii) direct the Agency Dircctor to tender to the court the affidavit referred to in section 64(1):and

Section64of Cap.59Awhichitisintended toamend-

64.Statementsrelatingto proceedsofcrime

• (1)The Agency Director may or,if so directed by the court,shall tender to the court an affidavit by the defendant or any other person in connection with any matter which is being inquired into by the court under section 6l(l).or which relates tothe determination of the value ofa defendant'sproceeds of crime.
• (6)A copy of the affidavit or affirmation tendered under subsection (5)shall be served on the Agency Director.
• (7)The Agency Director may admit the correctness of any allegation contained in an affidavit or affirmation tendered under subsection (5).
• (8)In so far as the Agency Director admits the correctmess ofany allegation contained in an affidavitor affirmation tendered under subsection(5),that allegation shall be considered to be conclusive proofof the matter lo which it relates.

Section 67ofCap.59Awhichitis intended toamend

67.Procedure whereperson absconds ordies

• (1)If a court is satisfied-
• (a)that-
• (i) aperson had been charged with an offence:or
• (i) aperson had been convicted of any offence:or
• (i) a restraint order had been made against a person:or
• (iv) there is sufficient evidence for putting a person on trial for anoffence:and

• (b)a warrant for that person's arrest had bcen issued and that the attendance ofthat person in court could not be secured after all reasonable steps were taken to execute that warrant;
• (c)the proceedings against that person cannot be resumed within a period of six months due to his continued absence:and
• (d)there arereasonable grounds to believe that aconfiscation order would have been made against that person were it not for his continued absence.

the court may.on an application by the Agency Director,inquire into any benefit he may have derived from that offence.

• (2)Whenever a defendant who has been convicted ofan offence dies bcfore a confiscation order is made,the court may,on an application by the Agency Direclor,inquire into any benefit he may have derived from that offence if the court is satisfied that there are rcasonable grounds to believe that a confiscation order wouid have been made against him were it not for his death.

Section68of Cap.59Awhichit isintended toamend-

68.Restraint orders

• (1)The Agency Director may apply to a court ex parte for an order prohibiting any person,subject to such conditions and exceptions as may be specified in the order,from dealing in any manner with any property to which the order relates.

Section 71of Cap.59Awhich it is intended to amend-

71.Seizure ofproperty subject to restraint order

• (1) In order to prevent any realizable property from being disposed of property if he hasreasonable grounds to believe that the property will be sodisposedoforremoved.

Section75ofCap.59A whichitisintendedtoamend-

75.Realization ofproperty

• (2)A court may.on the application of the Agency Director Section82ofCap.59Awhichitisintendedto amend

82.Preservation orders

• (l)The Agency Director may.by way of an cx parte application apply to the court for an order prohibiting any person,subject to such conditions and exceptions as may be specified in the order,from dealing inanymanner with any property.

Section83of Cap.59Awhich itisintended to amend-

83.Notice ofpreservation orders

• (1)If a court makes a preservation order,the Agency Director shall. within twenty-one days after the making of the order.give notice of the order toallpersons known to the Agency Director to have an interest in property which is subject to the order;and publish a notice of the order in the Gazette.

(4)A notice under subsection (3)shall bc served upon the Agency Director,in the case of-

Seclion85ofCap.59Awhichit isintendedtoamend-

85.Seizure ofproperty subject topreservation orders

(1)Inorder to prevent property subject toa preservation order from being disposed of or removed contrary to thal order,any policeofficer may seize any of that property if he has reasonable grounds to believe that the property will be so disposed ofor removed.

Section 86of Cap.59Awhich it isintended to amend-

86.Appointment ofmanager in respect of property subject to preservation orders

• (1)Where a court has made a preservation order,the court shall,ifit deems it appropriate or at the request of the Agency Director,at the timc of thcmaking of theorder or at a later time
• (a)appoint a manager to do,subject to the directions of that court or the Agency Director.any one or more of the following on bchalf of the person against whom thepreservation order has been made, namely

Section90of Cap.59Awhichir isintended toamend

90.Application forforfeiture order

• (1)If a preservation order is in force,the Agency Director may apply to the High Court for an order forfeiting to the Government all or any of theproperty that is subjcct to thc preservation order.
• (2)The Agency Director shall give fourteen days notice of an application under subsection (l)to every person who served notice in termsof section 83(3).

Section93ofCap.59Awhichitisintendedtoamend

93.Protection of third parties

• (4)A person who makes an application under subsection (1)or (2) shall givenot less than fourteen dayswritten notice of the makingof the

application to the Agency Director who shall be a party to any proceedings in the application.

• (5)An applicant or the Agency Director may in accordance with the High Court rules,appeal to the Court of Appeal against an order made under subsection (1).

Section94of Cap.59Awhichit is intended to amend-

94.Exclusion ofinterestsin property

• (4)If an applicant for an order under subsection (l) adduces evidence to show that he did not know or did not have reasonable grounds to the Agency Directormay submit a retum of the service on the applicant of anotice issued under section 90(3) in rebuttal of that evidencc in respect of the period since the date of such service.
• (5)Where the Agency Director submits a retum of the service on the applicant under subsection (4).the applicant shall,in addition to the facts referred to in subsections (2)(a)and (b).also provc on a balance of probabilities that,since such service,he has taken all reasonable steps to prevent the further use of the property concerned in the commission of an offence.

Section95ofCap.59Awhichit isintended toamend-

95.Forfeiture order by default

• (2)The High Court may.before making an order in terms of subsection (l),call upon the Agency Director to adduce such further evidence,either in writing or orally.in support of his application as the High Courtmay consider necessary.

Section99of Cap.59Awhich it isintended 1oamend-

99.Fuifilmentofforfeiture order

• (1)The manager shall,subject to any order for the exclusion of interests inforfeited propertyundersection94(2)(a)or96(3)andin accordancewith the directionsof the Agency Director-

Section103of Cap.59Awhichi isintendedto.amend

103.Production orders

• (1)Where a person has been charged with or convicted ofan offence, andapolice officer hasreasonable grounds for suspecting that any person has possession or control of-

• (a)a document rclevant to identifying.locating or quantifying property ofthe person,orto identifying orlocatinga document necessary for the transfer ofproperty of such person:or
• (b)a document relevant to identifying,locating or quantifying tainted property in relation to the offence,or to identifying or locating a documentnecessary for the transfer oftainted propcrtyin relation to the offencc,thepolice officcr may make an exparte application with a supporting affidavit to a court for an order against the person suspected ofhaving possession or control ofa document ofthekindreferred to.
• (2)Apolice officer to whom the documents areproduced may
• (a)inspect the documents;
• (b)make copiesof the documents:or
• (c)retain the documents for as long as is reasonably nccessary for the purposes of this Act.
• (3)Where a police officer retains documents produced to him,he shall make a copy of the documents available to the person who produced them.

Section105of Cap.59Awhichitisintended toamend

105.Failure to comply with a production order

• (1)Wherea person is required by a production order to produce a document to a police officer,the person commits an offence under this section ifhe-

Section 107ofCap.59Awhich it is intended to amend-

107.Search warrant for location of documents relevant to locating property

• (1)Where-
• (a)a person has been charged or convictedof an offence:or
• (b)a police officer has reasonable grounds for suspecting that there is or may be,within the next seventy-two hours,upon any land or in any premises,a document of the type described in section 103(1) in relation to the offence,

the police officer may make an application supported by an affidavit toa court of compctent jurisdiction fora search warrant inrespect of that land or thosepremises.

• (2)Where an application is made under subsection-(1)for a warrant to search land or premises,the court may,subject to subsection (4) issue a warrant authorizing a police officer,whether or not named in the warrant,with such assistance and by such force as is necessary and reasonable-
• (a)to enter upon the land or into any premises and to search the land orpremisesforproperty ofthatkind:and
• (b)to scizeproperty found in the course ofthe search that the police officer believes onreasonable grounds to beproperty of that kind.
• (3)A court shall not issue a warrant under subsection (2)unless it is satisfied that-
• (a)a production order hasbeen given in respect of the document and hasnot been complied with:or
• (b)a production order in respect of the document would be unlikely tobeeffective:or
• (c)the investigation for the purposes of which the search warrant is being soughtmight be seriously prejudiced if thepolice officer does not gain immediate access to the document without any notice to any person;or
• (5)If during the course of searching under a warrant issued under this section,a police officer finds-
• (a)a document of the type described in section 103(1) that the police officer belicves on reasonable grounds to relate to the relevant offence,or to another offence:or
• (b) anything the police officer believes on reasonable grounds will afford evidence as to the commission of an offence,

the police officer may seize that property or thing and the warrant shall be deemed to authorise such seizure.

Section124of Cap.59Awhichitisintended toamend

124.Hearingsof court to be open to public

• (3)An application for proceedings to be held behind closed doors may be brought by the Attorney-General or the manager referred to in section 68and any other person referred to in subsection (2),and such application shall be heard behind closed doors.

Section134ofCap.59Awhichit is intended to amend-

134.Regulations

• (1)The Cabinet Secretary shall make Regulations-

• (a)with regard to the nature of the information contemplated in section 44and the manner in which it is to bereported:
• (b)with regard to the designation of persons for purposes of section 47:
• (c)in consultation with the Chief Justice.prescribing from time to timethe maximum allowable costs forlegal services in connection with an application for a preservation of property order or forfeiture order or the defending of a criminal charge ofpropertyorder;
• (d)providing for highrisk customersor clients:and
• expedient to prescribe or to regulate inorder to achieve the objectsof this Act.
• (2)Notwithstanding the provisions of subseclion (l).the Cabinet
• Secretary may make regulations generally for carrying out the purposes and provisions of this Act,including the following-
• (a)regulations that require reportinginstitution to exercise due diligence and take reasonable measures to satisfy themselves as to the true identity ofany person seeking to enter into a business relationship with them,or seeking to carry out a transaction or series oftransactions with them,by requiring the person to produce an official record reasonably capable ofestablishing the true identity of theperson:
• (b)regulations that require reporting institutions to establish and
• maintain records of transactions;
• (c)regulationsthatrequirereportinginstitutionstoreport transactions or activities that they have reasonable grounds to believe are suspicious or unusual as defined by the regulations
• andthisAct:or
• (d)regulations that require reporting institutions to establish and maintain internal reporting procedures to make employees aware
• ofdomestic laws relatingto money-laundering,and the procedures and related policies established and maintained by them pursuant to this Act,to provide employees with appropriate training in the recognition and handling of suspicious activities that may be indicative ofmoney-laundering.to provide for an independent auditing of monitoring procedures.and to maintain an adequate anti-money laundering compliance programme.

First Schedule to Cap.59A which it isintendedto amend

The following institutions are the supervisory bodies referred to in section2-

• (a) Central Bank of Kenya:
• (b)Insurance Regulatory Authority;
• (c)Betting and Licensing Control Board;
• (d)Capital Markets Authority:
• (e)Institute of Certified Public Accountants of Kenya;
• (f)Estate Agents Registration Board:
• (g)Non-Governmental Organizations Co-ordination Board;
• (h)Retirement Benefits Authority:
• (i)Law Society of Kenya;
• (i)Sacco Societies Regulatory Authority.

Section 2of Cap.59Bwhichitisintended toamend-

2.Interpretation

• (1)In this Act,unless the context otherwise requires-

"aircraf"has the mcaning assigned to it under the Civil Aviation Act

(Cap.394)

"Cabinet Secretary"means the Cabinet Secretary for the time being responsible formatters relating to internal security;

Committee"means theCounter Financing of Terrorism Inter-

Ministerial Committee established under section 40D(1)ofthis Act:

communicationmeans ainformationreceivcdortransmitted through the postal service or through a telecommunication system within the meaning of the Kenya Information and Communications Act (Cap.

411A);

"communications service provider"means a person who is licensed uinder the Kenya Information and Communications Act to provide postal or telecommunication services;

"competent authority"in relation to a foreign State,means the Attorney-General or the equivalent officer of that State;

entity"means a person,group of persons,trust,partnership,fund r

an unincorporated association or organization;

"financial institutionmeans any person or entity,which conducts as a business,one ormore ofthe following activitiesor operations-

• (a)accepting deposits and otherrepayable fundsfrom the public:
• (b) lending,including consumcr credit,mortgage credit,factoring. with or withoutrecourse,and financingofcommercial transactions:
• (c)financial leasing:
• (d)transferring of funds or value,by any means,including both fommaland informalchannels:
• (e)issuing and managing means of payment (such as credit and debit cards,cheques,travellers'cheques,money orders and bankers drafis and electronic money):
• ()financial guarantees and commitments;
• (g)trading in-
• moneymarket instruments including cheques,bills,
• certificates of deposit and derivatives:
• (ii)foreign exchange:
• (ii)exchange,interest rate and index funds;
• (iv) transferable securities:or
• (v)commodity futures trading:
• (h)participation in securities issues and the provision of financial servicesrelatcd to suchissues;
• (i)individual and collective portfolio management;
• (j)safekeeping and administration of cash or liquid securities on behalfof other persons;
• (k)otherwise investing.administering or managing funds or money on behalf ofotherpersons:
• ()underwritingand placement oflife insurance and otherinvestment rclated insurance;
• (m)money and currency changing;

Financial Reporting Centre"means the Financial Reporting Centre established under section 2l of the Procceds of Crime and Anti-Money Laundering Act(Cap.59A):

"funds"means assets of every kind,whether corporealor incorporeal,tangible orintangible,movableorimmovable.howevcr

electronic or digital,evidencing title to,or interest in,such assets;

"Inspector-Generalmeans the Inspector-General of the National Police Service appointed under Article 245 of the Constitution;

masterin relation to avessel,means the owner orperson other than

aharbour master orpilot having for the time being command or charge of the vessel;

operator,in relation to an aircraft,has the meaning assigned to it

under the Civil Aviation Act (Cap.394):

"proliferation acts"means manufacturing.acquiring.possessing, developing, exporting, trans-shipping, brokering, transporting, transferring.stockpiling,supplying,selling or using nuclear,ballistic chemical,radiological or biological weapons or any other weapon capable ofcausing mass destruction,and their mcans of delivery and related materials including technology,goods,software,services or expertise in contravention of this Act or any international obligations derived from relevant United Nations Security Council Resolutions:

incorporeal,moveable or imimoveable,tangible or intangible,and legal documents or instruments evidencing title to.or interest in such assets and

includes funds;

"reporting institutionhas the meaning assigned to it under section 2

of the Proceeds of Crime and Anti-Money Laundering Act (Cap.59A):

specified entitymeans an entityin respect ofwhich an order

under section 3has been made:

"terrorist actmeans an act or threat of action-

(a)which-

• involves the use ofviolence against a person;
• endangers the life of a person,other than the person committingthe action:
• (ii)creates a seriousrisk to the health or safety of thepublic or a section of the public;
• (iv)results in serious damage to property:
• (v)involves the use of firearms or explosives;

• (vi) involves the release of any dangerous,hazardous,toxic orradioactive substance ormicrobial or other biological agent or toxin into the environment;
• (vii)interferes with an clectronie system resulting in the disruption of the provision of communication.financial, transport or other essential services:
• (viii)interferesor disrupts theprovision ofessentialor emergency services;
• (ix) prejudices national security or public safety;and(b)which is carricd out with the aim of-
• intimidatingor causing fear amongst members of thepublic or a section of thepublic:or
• (ii) intimidating or compelling the Govermment or intcmational organization lo do,or refrain from any act;or
• (ili)destabilizing the religious,political,Constitutional,economic or
• social institutions of a country,or an international organization:

Provided that an act which disrupts any services and is committed in pursuance of a protest,demonstration or stoppage ofwork shall be deemed not to be a terrorist actwithin the meaning ofthis definition so longas the act is not intended to result in any harm referred to in paragraph (a)(i) to (iv);

"terrorist group"means-(a)an entity that has as one of its activities and purposes,the committing of,or the facilitation of the commission of a terrorist act;or(b)a specified cntity:

"terrorist property"means-(a)proceeds from the commission of

a terrorist act,money or other property which has been,is being,or is intendedtobeuscdtocommit a terroristact;(b)moneyor other property which has been,is being,or is intended to be used by a terrorist group;or(c)any property belonging to a specificd entity;

"vessel"means any thing made or adapted for the conveyance by water ofpeopleorproperty:

"weaponincludes a firearm within the meaning assigned to it under the Firearms Act (Cap.114),explosive,chemical,biological,nuclear or otherlethal device.

Section5Aof Cap.59Bwhichitis intended to amend

5A.Financingoftravel for terrorism purposes

A person who finances the travel ofan individual to a State other than that individual's State of residence or nationality for the purpose of the perpetration,planning,or preparation of,or participation in, offence.

Section29ofCap.59Bwhichit isintendedtoamend

29.Collection ofinformation

Aperson who isa member ofa terrorist group or who,in committing orin instigating.preparing or facilitating the commission ofa terrorist act, holds,collects.generates or transmits information for the use in the commission ofa lerrorist act commitsan offence,and is liable,on conviction,to imprisonment for a term not exceeding thirty years.

Section30of Cap.59Bwhichitisintended toamend

30.Possession ofan article connected with an offence under this Act

Aperson who knowingly possesses an article orany information held on behalf of a person for the use in instigating the commission of. preparing to commit or committinga lerroristact commits an offence.and is liable,on conviction,to imprisonment for a term not exceeding twenty

Section30HofCap.59Bwhichi isintended toamend-

30H.Penaltiesforlegalpersons

• (1)Alegal person whocontravenestheprovisionsof sectins4.10,11,12,12B,12C,12D,13,14,14A.21,24,27,28,29or30 Dcommits an offence and is liable.on conviction,to a fine not exceeding thirty million shillings.

Section36Aof Cap.59B whichi is intended to amend-

36A.Interception of communication by the National Security Organs

• (1)The National Security Organs may intercept communication for the purposes ofdetecting,deterring and disrupting terrorism in accordance with procedures to be prescribed by the Cabinet Secretary.
• (2) The Cabinet Secretary shall make regulations to give effect to subsection (l),and such regulations shall only take effect upon approval by the National Assembly.
• (3)Theright to privacyunder Article 3l of the Constitution shall be limited under this section for the purpose of intercepting communication directly relevant in the detecting.detemring and disruptingterrorism.

Section40Eof Cap.59Bwhichitis intended toamend

40E.Functions of the Committee

• (2)The Committee may,in carrying out its functions,co-ordinate with the relevant competent party and any other person for the purposes of
• (a)identifying persons or entities for the purpose of designation;
• (b)examining and giving effect,upon a request by a foreign country, to an action initiated underthe freezingmechanism of that foreign country.which is consistent with the public interest ofKenya;
• (c)consideringrequests for the delisting ofadesignated cntity under this Act and the regulations made thereunder,and
• (d)the performance of iis functions under this Act.

Section42Aof Cap.59Bwhich itis inlended1o amend

42A.Role of theFinancial Reporting Centre and supervisory bodies

• (1)The Financial Reporting Centre and supervisory bodies shall have the power to supervise and enforce the application of preventative measures to combat the financing of terrorism and combat the financing ofproliferation actsbyreportinginstitutions.
• (2)For the purposes of this section
• (a)"preventative measures"include measures under Part IVof the Proceeds of Crime and Anti-Money Laundering Act,2009;and
• (b)"Supervisory body"has the meaning assigned under section 2of the Proceeds of Crime and Anti-Money LaunderingAct,2009.

Section50ofCap.59Bwhichitisintended toamend

50.Power to makerules

• (4)Regulations made under this section shall be laid before the National Assembly.

Section 2of Cap.131whichit is inlended to amend-

2.Interpretation

In this Act,unless the context otherwise requires

• "authorized race meetingmeans a racemeeting in respect of which a permit authorizing bookmaking to takeplace thereat hasbeen issued under section23:

betting premises means premises to which the public has ormay

have access and which are kept or used (whethcr on one occasion or more than one)for thepurpose of-

• (a)bets beingmadethcrcin between persons resortingto the premises and the owner,occupier orkeeper thereof,orany person using the premises,or any person procured or employed by or acting foror on behalf ofthe owner,occupier,keeper or person using the premises,or of any pcrson having the care or management or in any manner conducting the business thereof;or
• (b)any money or valuablethingbeingreceived by or on behalf of the owner.occupier,keeper or person aforesaid as orforthe considerationfor any assurance.undertaking.promise or agreement,expressor implied,to pay orgive,or forsccuring the thing on any horse race,or other race,fight,game,sport,lottery orexercise,or any other evenl or contingency:

"belting transaction"includes the collection or payment of winnings on a bet and any transaction in which one or more of the parties is acting asabookmaker;

"bookmaker"means a person who,whether on his own account or as servant or agcnt to another person,caries on,whether occasionally or regularly,the business of receiving or negotiating bets,or who in any manner holds himself out,or permits himself to be held out in any manner, asa person who receives or negotiates bets,so however that a person shall not be deemed tobe a bookmakerbyreason onlyof thefact

• (a)that he carries on,or is employed in operating.a totalisator in
• respectofwhicha liccnce has been issued under section 18;or
• (b)that he carries on,or is employed in a business that is wholly concerned with,a pool betting scheme inrespect of which a
• licence has been issued under section 22:

"Collectormeans the Commissioner-General appointed under the

Kenya Revenue Authority Act (Cap.469):

"coupon,in relation toa pool betting scheme or proposed pool betting scheme,includes a document connected with,or designed to assist in the making of,a bet by way of pool betting:

game of chance"includesa gamc of chance and skill combined and apretended game of chance or of chance and skill combined,but does not

include an athleticgame orsport;

"gaming"means the playing of a game of chance for winnings in money ormoney's worth;

gaming machinemeans a machine for playing a game of chance, being a game which requiresno action by a player other than the actuation ormanipulation ofthe machine:

on one occasion or more than one) for gaming,and to which thepublic has ormay have access for the playing therein of a game of chance,whether thegame of chance be an unlawful game ornot;

gaming revenuemeans gross turnover less the amount paid out to

customers as winnings;

"horserace"includesapony race;

instruments of gamingmeans cards,dice,counters,coins, tickets, gamingtables,boards,boxes,or other things devised,orbirds and animals used,for thepurpose ofgaming:

"licensed betting premises"means premises duly licensed in terms of this Act as premises wherein bets may be made and settled;

"licensed gaming premises"means premises licensed under this Act

aspremises towhich the public mayresort for the purpose of gaming;

"licensee"means a person issued with a licence under any of sections 16.18,22and46;

"lottery"includes a sweepstake,a raffle and any scheme or device for

the sale,gift,disposal or distribution ofany property dependingupon or to be determincd by lot or chance,whether by the throwing or castingof dice,or by the withdrawing of tickets,cards,lots,numbers or figures,or by means of a wheel,orotherwisehowsoever;

money"includes a cheque,bank note,postal orderormoney order;

"newspaper"includes a journal,magazine or other periodical publication;

"permit-holdermeans the holder of a permit issued under any

sections23.36,39,54and58:

pool belting"means the making of bets (other than bets made by means of totalisator).whether the bets are made on the system known asa fixed odds betting or otherwise,by a number ofpersons on terms that the winnings of such of those persons as are winners shall be,or be a share of, or be determined by reference to.the stake money paid or agreed to be paid by those persons;

pool betting schememeans a schcme involving the receiving or

negotiatingofbetsmade byway of pool betting;

premisesincludes any place,and in scctions 14,35,45,50,53and 58also includesany vessel;

"racecourse"means a place used for the purpose of holding a race

meeling:

"race daymeans a day on which a race meeting is held;

"race meetingmeans a gathering of the public or of the members of

an association ofpersons to watchhorse races or other races:

tax"means any charges,fees,levies or impositions imposed under this Act;

"the Board"means the Betting Control and Licensing Board

established by section 3;

"the Principal Secretarymeans the Principal Secretary of the

"ticket,in relation to any lottery or proposed lottery,includes any document evidencing the claim of a person to participate in the chances of

Ministry for the time being responsible for Betting.Lotteries and Gaming:

the lottery:

"to betmeans to wager or stake any money or valuable thing by or on behalf of any person or,expressly or impliedly to undertake,promise or agree to wager or stake by or on behalf of any person,any money or valuable thing na horse race,or other race,fight,game,sport,lottery or exercise or any other event or contingency;

"totalisator" meanstheinstrument,machine orcontrivance commonly known as a totalisator,or any other instrument,machine or contrivance of a similar nature,or a scheme for enabling any number of persons to make bets on any event or contingency whatsoever with one another orprinciplesofa similar nature:

"turf club"means a club or association or other body of persons (whether incorporated or unincorporated)established for the purpose of promoting,conducting and controlling the sport of horse racing;

unlawful game"means a game of chance the chances of which are or persons by whom the game is managed or against whom the other

not alike favourable to all the players,including the banker or other person players stake,play or bet;

"winnings"includes winnings of any kind and a reference to the amount or to the payment ofwinnings shall be construed accordingly.

Section50ofCap.197which itisintendedtoamend-

2.Interpretation

In this Act,unless the contexl otherwise requires

"actuary" means a person who isa Fellow ofthe Institute of Actuaries in England,or the Faculty of Actuarics in Scotland,or the Canadian Institute of Actuaries,or the Society of Actuariesofthe United Statesof America or the Institute of Actuarics of Japan or the Institute of Actuaries ofAustralia or a person holding such cquivalent qualification as the Board may.by notice in the Gazette,prescribe;

"administratormeans a person appointed by trustees to administer a scheme in accordance with such terms and conditions ofscrvice as may be specified in the instrument of appointment;

"authority"means the Retirement Benefits Authority established by section3;

"Board"means the Board of Directorsof the Authority constituted undersection 6:

Cabinet Secretary"means the Cabinet Secretary for the time being responsible formatters relating toFinance;

"Chief Executive Officer"means the Chief Executive Officer of the Authority appointed under section 1l:

"corporate trusteemcans a limited liability company incorporated under the Companies Act (Cap. 486).which is,for the time being, cmpoweredunderanywrittenlaw,itscharter,memorandum of association,deed of setllement or other instrument constituting itor defining its powers to mainly undertake trusts,and includes a trust corporation;

"custodian"means a company whose business includes taking responsibility for the safe custody of the funds,securities,financial instruments and documents of title of the assets of scheme funds;

"financial year"

• (a)in relation to the Authority. has the meaning assigned to it
• in section 19:
• (b) in relation to a scheme,means such accounting period as may be prescribed in the schemerules;

"Fund"means the Retirement Benefits Authority Fund established by section 17;

"Levy"means the Retirement Benefits Levy to be imposed under section 16;

"managermeans a company whose business includes-

• (i) undertaking.pursuant to a contract or other arrangement,the management of the funds and other assets of a scheme fund for purposes ofinvestment;
• (i)providing consultancy services on the investment of scheme funds;or
• (ii)reporting or disseminating information concerning the assets availablefor investment of scheme funds;

"member"means a member of a retirement benefits scheme and includes aperson entitled to or receivinga benefit under aretirement benefits scheme;

pooled fundmeans a fund established bya limited liability company,other than an approved issuer,for purposes of pooling scheme

funds for collective investment:

'post-retirement medical fundmeans a fund established under this Act into which contributions aremade and from which costsofmedical

benefits can be met in accordance with the medical fund rules;

"retircment benefits scheme"means any scheme or arrangement (other than a contract forlife assurance)whether established by a written law for the time beingin force or by any other instrument,under which persons are entitled to benefitsin the form of paymentsor post-retirement medical cover detcrmined by age,length of service,amount of earnings or otherwise andpayable primarily upon retirement,or upon death. termination of service,or upon the occurrence of such other event as may be specified in such written law or other instrument:

"scheme"means a retirement benefits scheme;

"scheme fund"means the retirement benefits scheme fund to be

cstablishedpursuant to theprovisions of section32:

"scheme rules"meanstherules specificallygoverning the

constitution and administration of a particular scheme;

"sponsor"means a person who establishes a scheme;

"statutory fund"has the meaning assigned to it in section 2 of the

Insurance Act (Cap.487);

"Tribunalmeans the Appeals Tribunal established under section 48;

"trustcorporation"means acompany incorporaledunder the Companies Act (Cap.486)havinga subseribed capital ofnot less than ten settlement or other instrument constituting it or defining its powers) to

million shillings and which is for the time being empowered (by orunder any written law,its charter,memorandum of association,deed of undertaketrusts:

Provided that such company does not,by any prospectus,circular, advertisements,or other documents issued by it or on its behalf,state or hold out that anyliability attaches tothe PublicTrustee or to the Consolidated Fund in respect ofany act or omission ofthe company when acting as an executor or administrator:

"trustee"means a trustee of a scheme fund and includes a trust corporation.

Section 4of Cap.306whichiiis intendedto amend-

4.Interpretation

In this Act,unless the context otherwiscrequires-

"application"includes-

• (a) an application for the grant,renewal,transfer,assignment or surrender ofamineral right:or
• (b)an application for the grant or renewal of a mineral dealer's licence oradiamond dealer'slicencc:

arm's-length value"means the purchasc price under an immediate sale transaction in an open market where the purchase price for the sale-

• between the parties to the transaction,other than the immediate sale itself:and
• (b)is not affccted by any non-commercial or other considerations; and specifically excludes any barter,swap,exchange,or transfer price arrangcments or any restricted transaction that is associated with special financial,commercial or other considerations;
• "artisanal mining" means traditionaland customary mining operations using traditional or customary ways and means;

"artisanal mining permitmeans a permit issued under section95:

"bankerincludes a manager,cashier or any other officer acting in that capacity of a company engaged in the business of banking within Kenya and in compliance with the provisions of the Banking Act (Cap. 488):

"block or cadastral unit"means apseudo-quadrilateral formed by

two meridians oflongitude and two parallels oflatinude of the Cadastral Graticule spaced fifteen seconds apart:

"Cabinet Secretary"means the Cabinet Secretary for the time being responsible formining:

"community"means

• e o ) operations area,or
• (b)a group ofpeople who may be displaced from land intended for exploration and mining operations;

"Community Developmcnt Agreementmeans an agreement entered intobetween alarge-scalemining licence holder and a community:

"construction mineralsincludes stones,gravel,sands,soils,clay

volcanic ash,volcanic cinder and any other minerals used for the construction of buildings,roads,dams,aerodromes and landscaping or similar works.and such other minerals as the Cabinet Secretary may from time to time declare to be construction minerals,by notice published in the

Gazette:

companyhas the meaning assigned to it under the Companies Act (Cap.486):

"Corporationmeans the National Mining Corporation established in section 22:

"Council of County Governors"means the Council of County

Governors established under section I9 of theIntergovernmental Relations Act (Cap.265F):

"day"means a calendar day;

"diamond"includes a rough and uncut diamond;

Director of Geological Survey"means the Director of Geological Survey appointed under section I8;

"Director of Mines"mean the Director of Mines appointed under

section18:

"environmenthas themeaningassignedtoiunder the Environmental Management and Coordination Act (Cap.387);

"environmental impact assessment licence"means an environmental impact assessment licence granted under the Environmental Management

and Coordination Act (Cap.387):

excavationmeans a trench,pit,shaft,redging,brine pumping

orother workwhich isrelated to operationsunder a mineral right;

"financial difficultyin respect of a company or other body

corporate,means that the company orbody corporate-

• (a)isinliquidation:
• (b) is the subject of a subsisting court order for its winding up or
• dissolution:or
• (c)has made a composition or arrangement with its creditors which remainsincffect;

"first-come,first-servedmeans the policyof considering and

approving applicationsbased on the ordcr ofreceiving the applications;

geologistmeans a person who is registered as geologist in

accordance with the Geologists'Registration Act (Cap.535);

geologymeans the scientificand research aspects of the solid earth and its processes:

geological reportmeans a report made bya geologist;

"gross value"means the arm's-length value ofminerals or mineral products at thc point of sale within Kenya,without any discounts,

commissions ordeductions:

"groundwater"has the meaning assigned to it under the Water Act (Cap.372);

"holder",in respect of a mineral right,a licence or permit under this Act,means-

• (a)a person to whom a mineral right is granted;or
• (b)theperson to whom a mineral right is transferred or assigned;

"inspector of minesmeans a public officer who has been appointed inaccordance with section 196:

"land"has the meaning assigned to it in Article 260 ofthe

Constitution;

"large scale operationmeans a prospecting or mining operation that

isa large scale operation in accordance with this Act;

"licence area"means the area or areas of land covered by a prospecting licence,a retention licence or a mining licence under this Act;

"liquidatorhas the meaning assigned to it under the Companies Act

(Cap.486):

"maritime zoneshas the meaning assigned to it under the Maritime Zones Act(Cap.371);

membermeans a member of the Board appointedunder section 25: "mine"

• (a)when used as a noun,includes an excavation or system of excavations made for the purpose of,or in connection with,the extraction ofminerals ormineral products,and includes an opencast pit.quarry and any area where a mineral is won by dredging brine pumping,evaporation or other means;and
• (b)when used as a verb,means the carrying out of a mining operation and includes tailing:

mines support"means-

• (a)contract mining services which include top soil and waste removal,drilling and blasting.excavating and haulage of ore to plant on turmkey basis:
• (b)assay laboratory services;
• (c)drilling and blasting services;
• (d)mineral exploration services for a holder of a mineral right;
• (e)contract mining services for small scale and artisanal mining, which include mining and processing of ore reclamation revegctation and management ofminingoperations;
• (f)any other services specifically and exclusively related to mining. which the Cabinet Secretary considers necessary for the effective
• and sustainable development of the mining industry;
• mineral dealings;

"mineral dealings"means

• (a)buying minerals;
• (b)selling minerals;
• (c)barteringminerals;
• (d)depositing or receiving minerals asa pledge or security: or
• (e)cutting,polishing.processing,refining and treatingminerals;

"mineral dealer's permitmeans a permit issued in accordance with section 164:

mineral depositmeans a mass of naturally occurring minerals of

economic value;

"mine waste and tailingsmeans the residue of mining operations that includes gravel,sand,slime.or other substances that are discarded in the courseofminingoperations;

"mineralmeans a geological substance whether in solid,liquid or Schedule but does not include petroleum,hydrocarbon gases or

gaseous form occurring naturally in or on the carth,in or under water,in mine waste or tailing and includes the minerals specified in the First groundwater;

"mineral agrccmentmeans mineralagreement entered into in

accordancewith section 117:

"mineral product"for the purposes ofroyalty a product of mining operations,the product of extraction in mining operations of a metal or a precious mineral from a mineral and the product of beneficiation in mining operations of a mineral,but excluding waste and tailings;

'mineral right"means-

• (a)a prospectinglicence;
• (b)a retentionlicence:
• (c)a mining licence;
• (d)a prospecting permit:
• (e)a mining permit;or
• (an artisanal permit;

"Mineral Rights Boardmeans the Board established under section 30;

mining area"means an area or areas of land that are covered by a mining licence;

mining bondmeans an obligatory payment or cash deposit that may berequiredof amineralright holder as guarantce for the due implementation of an approvedminingprogramme;

mining permitmeans a permit granted in accordance with this Act, which authorisesthe holderto carry out small scale mining operations:

mining licence"means a licence relating to large scale operations which authorises the holder to carry out mining operations:

"mining operations"means an operation carried out in connection witha mine

• (a)to win a mineral from where it occurs;
• (b)to extract metal or precious mineral from a mineral so won,or to
• bencficiate a mineral so won:or
• (c)to dispose of a mine waste or tailings resulting from winning. extraction or bcnefaction;

"National Land Commissionmcans the National Land Commission established under Article 67of the Constitution;

miningpermit:

"petroleumhas the meaning assigned to it under the Petroleum

(Exploration and Production)Act(Cap.308);

"precious minerals"means the minerals specified in Part Bof the

First Schedule:

"precious stones"means the minerals specified in Part C of the First

Schedule:

"Principal Secretary"means the Principal Secretary in the State Department for the time beingresponsible for mining:

programme for mining operationsin respect ofa mining licence

means-

• (a)a programme of an intended mining opcration prepared by the holder of the licence and approved by the Director of Mines on
• the grant or renewal of the licence;or
• (b)where the programme is amended pursuant to this Act,means the programme as so amended;

programme for prospectingoperationsmeansa programme of intendedprospectingoperationspreparedbytheapplicantfora prospecting licence and approved by the Cabinet Secretary on the grant or renewal of the licence,and where the programme is amended pursuant to

this Act means the programme as so amended;

prospecting area"means the area or areas of land covered bya

prospectingpermit orlicence;

prospecting liccnce"means licencerelating to large scale operations which authorises theholder to carry out prospecting operations:

"prospecting operationsmeans operations carried out offshore and

on land to search for and define the extent ofa mineral deposit and to determine itseconomic value;

prospecting permitmeans a pemit relating to small scale

operations which authorises its holder to carry outprospecting operations;

"public officer"has the meaning assigned to it under Article 260 of

the Constitution:

"Public Service Commissionmeans the Public Service Commission established under Article 233(1)of the Constitution;

"radioactive mineral"means a mineral that contains by weight at least one-twentieth of one per cent (0.05 %)ofuranium or thorium or any combination thercof,including.but not limited to,monazite sand and other ores containing thorium,carmotite,and pitchblende:

"reconnaissance"means the operations and works to carry out the non-intrusive search for mineral resources by geophysical surveys, geochemical surveys,photo geological surveys or other remote sensing techniques and surface geology in connection therewith,but excludes drilling and excavations;

"reconnaissancearea" means an areathat is subject to a

reconnaissance licence;

"reconnaissance licence"means a licence granted under section 61 of this Act;

"registermeans the register of mineral rights established under this Act;

"retention area"means the area or areas ofland covered by a

retention licence:

"retention licence"means a retention licence granted under this Act;

"small scale operationmeans a prospecting or mining operation as described by the Second Schedule tothis Act;

"strategic mineralsmeans minerals declared to be strategic minerals

under this Act;

"transfer"includes to assign or trade;

"unwrought precious metalmeans precious.metal in any form whatsoever,which is not manufactured or made up into an article of industry or of the arts,and includes amalgam,slimes,slags,precious metal concentrates,pots,battery chips,sweepings from reduction works and scrapings and by-producis ofunrefined preciousmetal andprecious metal which has been smelted into the form ofbullion but does not include ore

in situ;and

"water resource"has the meaning assigned to it under the Water

Act (Cap.372).

Section 2ofCap.490Bwhichit is intendedto amend

2.Interpretation

In this Act,unless the context otherwise requires

"associate"means-

• (a)in relation to a company or other body corporate
• (i)its non-operating holding company or its subsidiary:
• (ii)a holding company of its subsidiary;
• (ii)a subsidiary of itsnon-operating holding company;
• (iv)any person who controls the company or body corporate whether alone or withhis associates or with other associates ofit;

(b)in relation to an individual-

• (i)any member ofhis family:
• indirectly by him whcther alone or with his associates:and
• aperson shall be dcemed to bea member ofa family if he is the parent,spouse,brother,sister,child,uncle,aunt,nephew,niece,
• stepfather,stepmother,stepchild and adopted childoftheperson concerned,and in case of an adopted child his adopter oradoptcrs:

"Boardmeans the Board of the Authority constituted under section 6

"board of directors"has the meaning assigned thereto in the Co-

operative Societies Act (Cap.490):

Board of Trusteesmeans the board of trustees established by section56of this Act;

"by-laws"has the meaning assigned thereto in the Co-operative

SocietiesAct(Cap.490);

"Cabinet Secretarymeans the Cabinet Secretary for the time being

responsible formattersrelating to Sacco societies;

"Central Bank"means the Central Bank of Kenya established by the Central Bank ofKenya Act (Cap.491);

"chicf cxecutive officer"means.the chief cxecutive officer of the

Authority:

"Commissioner"has the meaning assigned thereto in the CooperativeSocictiesAct (Cap.490):

"control"in relation to the termassociate"includes-

• (i)ability to influence whether directly or indirectly,the composition oftheboard ofdirectors ofa deposit-takingSacco society;or
• (ii)holding,directly or indirectly,whether personally or through a aggregate of twenty fiveper centum or more of the voting power ofa company or body corporate,whether alone or with associates orofthebody corporale.

"core capital"means the fully paid up members' shares,capital issued,disclosed reserves,retained earmings,grants and donations all of which are not meant to be expended unless on liquidation ofthe Sacco

society:

"co-operative society"has the meaning assigned to it in the Co-

operativeSocietiesAct (Cap.490);

"deposit"means a sum of money received or paid on terms under which it shall be repaid,with or without interest a return or premium,and either on demand or at a time or in circumstances agreed by or on behalf

of theperson making the payment and the person receiving it;

"Deposit Guarantce Fund"means the Deposit Guarantee Fund establishedby section55:

"deposit-taking business"means-

• (a)a Sacco business in which the person conducting the business holds himself out as accepting deposits on a day-to-day basis;and
• (b)any other activity of the Sacco business which is financed,wholly or to a material extent,by lending or exlending credit for the account and at the risk of the person accepting the deposit, including the provision of short-term loans or funding or in compliance with theIslamic law;

directorhas the mcaning assigned to it in the Co-operative SocietiesAct(Cap.490):

"dormant accountmeans a savings or current account maintained by aSacco society which is not operational,orhas had no transaction by the depositor within the maximum periodprescribed;

"General Fund"means the fund established by section 16;

accounting standards set by the Intermational AccountingStandardsBoard:

"intermational financial reporting standards"means the international

"landincludes freehold and leasehold land in Kenya and all buildings and pemmanent improvements andprcmises thereon:

"levy"meansthe levy imposed under section-15:

"memberhas the meaning assigned to it in the Co-operative Societies Act (Cap.490):

"licence"means a licence granted under section 25;

"non-deposit taking business"means Sacco business.other than

desposit-taking business:

"officer"in relation to a Sacco society,means a director or any other person,by whatever name or title he may be called or described,who carricsout or is empowered to carry out functions relating to the ovcrall direction inKenya ofthat deposit-takingSacco society or takespart in the general management thereof in Kenya:

"place ofbusiness"means a Sacco society's head office,branch,or outlet,including a mobile unit,marketing office,automated teller

"Saccobusiness" means financial intermediation and any other activity by aSacco society based on co-operative principles and in accordance with thisAct,or in compliance with Islamic law,by way of

machinesor agency of a Sacco society andwhich is open to thepublic:

• (a)receipt of withdraw-able deposits,domesticmoneytransfer
• services,loans,finance,advances and credit facilities:or
• (b)receipt ofnon-withdrawable deposits from members and which deposits are notavailable for withdrawal for the duration of the membership ofa member in a Sacco society and may be used as collateral against borrowings providing finance and domestic money transfer services;

Sacco society"means a savings and credit co-operative society registered under the Co-operative Societies Act (Cap.490);

"share capitalmeans members'equity in the form of issued and fully

paidup shares ofcommon stock:

"total capitalmeans the total sum of core capital and supplementary capital ofa Sacco society:

total deposit liabilitiesmeans the total deposits in Kenya in any Sacco societywhich are repayable on demand or after a fixed period or after notice under agreed terms and conditions;

"Tribunalhas the meaning assigned to it in the Co-operative Societies Act (Cap.490):

"trustees"means the trustees of the board of trustees of the Deposit GuaranleeFund constitutedunderscction57

Section2ofCap.53lwhichit isintended toamend

2.Interpretation

• (1)In this Act,unless the context otherwise requires-

"accountancy"means practice in accounting.financial reporting control systems,systems auditing,auditing.assurance,forensic accounting and auditing,finance,financial management,public finance management, taxation,financial risk management,management accounting and advisory servicesrelated thereto:

accountantis a person registered as an accountant under section 24 ofthis Act and is a member as defined in section 4(2)(a)and (b)with expertise achieved through formal education and practical experience,and shall beheld to a highprofessional standard inrespect to-

• (a)demonstrating and maintaining competence in accountancy in line with Intemational Accounting standards;
• (b)compliance with the Institute's code of ethics:
• (c)maintaining good standing status:and
• (d)subject toenforcement ofthe rules and regulations of the Institute;

annual licencemeans an annual licence issued pursuant to section 22:

"Cabinet Secretary"means the Cabinet Secretary responsible for mattersrelating to finance;

"Chairpersonmeans the Chairperson of the Institute,and includes a person appointedunder paragraph 2of the First Schedule to actas Chairperson;

"Capital Markets Authority"means the Authority established under section5of thcCapital Markets Act(Cap.485A);

"Certified Public Secretary"means a member of the Institute of Certified Public Secretaries ofKenya:

"colleges of technologymeans institutions involved in the

training of accountants and secretaries;

"company"has the meaning assigned to it under scction 2of the

CompaniesAct(Cap.486);

"Council"means the Council of the Institute establishcd under section9;

"Disciplinary Committeemeans the committee established under

section31:

"Examinations Board"means theKenya Accountants and Secretaries National ExaminationsBoard establishcd under scction I4:

examination offencemeans an offence as prescribed by section 42 ofthis Act;

"firmmeans a sole proprietorship or partnership established by

members inpractice;

"Institutemeans theInstitute of Certified Public Accountants of

Kenya established under section 3 of this Act:

"Instituteof Certified Public Secretaries of Kenyamcans the Institute of that name established under the Certified Public Secretaries of KenyaAct(Cap.534):

practising certificate"means a practising certificate issued pursuant

lo section21;

register"means the register kept pursuant to section 28;

"Registration Committeemeans the Committee established under section 13:and

trainee accountantmeans a person registered by the Examinations Board and who has commenced professional accountancy education or raining or is practicing accountancy as part of initialprofessional levelopment required forqualification asan accountant.

Section2ofCap.533whichitisintended toamend-

2.Interpretation

• (1)In this Acl,unless the context otherwise requires-

ection3;

"Boardmeans the Estate Agents Registration Board established by

"Cabinet Secretary"means the Cabinet Secretary for the time being

esponsible formattersrelating to Land:

"practice as an estate agentmeans the doing,in connection with the selling,mortgaging,charging.letting or management of immovable property or of any house,shop or other building forming part thereof,of any of the following acts-

• (a)bringing together,or taking steps to bring together,a prospective vendor,lessor or lender and a prospective purchaser,lessee or borrower;or
• (b)negotiating the terms of salc,mortgage,charge or letting as an intermediary betwcen or onbehalf of either of theprincipals:
• "register"means the registerkept under section 7;

registrarmeans the registrar of theBoard appointed under section 6

Section 2ofCap.534which it isintended to amend

2.Interpretation

• (l)In this Act,unless the context otherwise requires

"certified public secretarymeans a person registered as a certified public secretary under section 19;

"Chairperson oftheBoard"means the Chairpersonof the Registration of Certified Public Secretaries Board appointed by the Cabinet Secretary under the Third Schedule:

"Chairperson of the Institute"means the Chairperson of the Institute and includes a person appointed under paragraph 2of the First Schedule to actas Chairperson:

"company secretary"means a certified public secretary:

"Councilmeans the Council of the Institute established by section 8;

"Disciplinary Commitee"means the committee established under section 25:

Examination Boardmeans the Kenya Accountants and Secretaries National ExaminationsBoard cstablished by section 14of the Accountants Act(Cap.531);

"Institutemeans the Institute of Certified Public Secretaries of Kenya established by section 3;

practising certificatemeans a practising certificate issued by the RegistrationBoardpursuant to section 14:

registermeans the register kept pursuant to section 22:

"Registration Boardmeans the Registration of Certified Public

SecretariesBoard established by section I1.

Section2ofNo.18of2013whichit isintendedtoamend

2.Interpretation.

In this Act,unless the context otherwise requires-

"Authority"means the Public Benefit Organizations Regulatory

Authority established under scction34:

authorized agent"means a legal representative,who is a Kenyan citizen,authorized to receive official summonses,notices and inquiries on behalf of an international non-govermmcntal organization;

"Board"means the Board of he Authority cstablished under scction 35:

"Cabinet Secretarymeans the Cabinet Secretary for the time being

responsible for mattersrelating to planningand national development;

"Federation"means the National Federation of Public Benefit Organizations established under section 21;

means a.nongovernmental organization with its original registration being in a country other thanKenya and operating inKenya under a certificate ofregistration

"internationalnon-governmentalorganization" issued under sectionI0 of thisAct:

"public benefit activity"means an activity that supports or promotes

"register"means the register kept by the Authority pursuant to section 15:and

public benefit by enhancing or promoting the cconomic,environmental, social or cultural development orprotecting the environment or lobbying or advocating on issues of general public interest or the intcrest or wcllbeing of the general public or a category of individuals or organizations;

"Tribunalmeans the Public Benefit Organizations Disputes Tribunal stablished under section 50.

cction3of No.18of2013whichit is intendedto amend-

.Objects and purposes of the Act

The objects and purposes of thisAct are to-

• encourage and support public bencfit organisations in their contribution to meeting the diverse needs of the people ofKenya
• (a) by-

• (i)creating a conducive environment for the growth of the public benefit organizations sector and for the operations of theregistered publicbenefit organizations;
• (i) establishing an administrative and regulatory framework within which public benefit organisations can conduct their affairs:
• (ili) encouraging public benefit organisations to maintain high standards of govemance.transparency and accountability and to improve thosestandards;
• (iv)creating an environment within which the public may have access to information concerming registered public benefit organisations:and
• (v) promoting a spirit ofco-operation and shared responsibility within govemment and among donors and other intcrested personsin their dealings with public benefit organisations;
• (b)give meaningful protection to the intermationally recognized frecdoms ofexpression.association,and peaceful assembly:
• (c)promote the development of self-regulation among public benefit
• (d)promote compliance by public benefit organisationswith their legal obligations to exercisceffective control and managcment over the administration of their activities and funding:
• (e)facilitate a constructive and principled collaboration between public benefit organisations,the Govermment,business,donors and other actors in order to advancepublic interest:
• )provide registration procedures,which are transparent,and which will facilitate establishment ofpublicbenefit organizations while safeguarding freedom of association;
• (g)facilitate mechanisms for govemment collaboration with public benefit organizations,including funding of publicbenefit organizations activities and involvementof public benefit organizations in the implementation ofgovermmcnt projects;
• (h)facilitate the establishment and growth ofpublic benefit organizations in order to generally strengthen civil society. promole social welfare and improve the conditions and quality of lifefor the peopleofKenya.