Report On Approval Hearing Of Nominee For Appointment As Director General Financial Reporting Centre

THENATIONALASSEMBLY THIRTEENTHPARLIAMENT

FIFTHSESSION-2026

REPORTOFTHEDEPARTMENTALCOMMITTEEONFINANCEAND NATIONALPLANNING

ON

THEAPPROVALHEARINGFORMR.NAPHTALYKIPCHIRCHIRRONO THENOMINEEFORAPPOINTMENTTOTHEPOSITIONOFDIRECTOR GENERALOFTHEFINANCIALREPORTINGCENTRE

Clerks'Chambers Parliament Buildings NAIROBI

February, 2026

| TABLEOFCONTENTS LISTOFABBREVIATIONANDACRONYMS | TABLEOFCONTENTS LISTOFABBREVIATIONANDACRONYMS | 4 | |----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------| | ANNEXURES | ANNEXURES | 5 | | CHAIRPERSONS'FOREWORD | CHAIRPERSONS'FOREWORD | 6 | | CHAPTER ONE | CHAPTER ONE | 8 | | IPREFACE | IPREFACE | 8 | | 1.IESTABLISHMENTANDMANDATEOFTHECOMMITTEE | 1.IESTABLISHMENTANDMANDATEOFTHECOMMITTEE | 8 | | 1.2COMMITTEEMEMBERSHIP | 1.2COMMITTEEMEMBERSHIP | 10 | | 1.3COMMITTEESECRETARIAT | 1.3COMMITTEESECRETARIAT | I | | CHAPTERTWO | CHAPTERTWO | 12 | | 2.0 | LEGALFRAMEWORK | 12 | | 2.1 The Proceeds of Crime and Anti-Money Laundering Act Cap 59A | 2.1 The Proceeds of Crime and Anti-Money Laundering Act Cap 59A | 12 | | 2.2 The Office of the Director General of Financial Reporting Centre | 2.2 The Office of the Director General of Financial Reporting Centre | 12 | | 2.3Appointmentofa Director General of the Financial ReportingCentre | 2.3Appointmentofa Director General of the Financial ReportingCentre | 2.3Appointmentofa Director General of the Financial ReportingCentre | | | | 12 | | 2.4 Constitutional and statutory requirements in parliamentary approval of | 2.4 Constitutional and statutory requirements in parliamentary approval of | 2.4 Constitutional and statutory requirements in parliamentary approval of | | publicappointments | publicappointments | 13 | | 2.5ConstitutionalProvisions | 2.5ConstitutionalProvisions | 13 | | 2.6 The Public Appointments (Parliamentary Approval) Act, Cap. 7F | 2.6 The Public Appointments (Parliamentary Approval) Act, Cap. 7F | 15 | | 2.7 The Leadership and Integrity Act | 2.7 The Leadership and Integrity Act | 17 | | 2.8 The Public Service (Values and Principles) Act | 2.8 The Public Service (Values and Principles) Act | 17 | | 2.9 ThePublicOfficerEthicsAct | 2.9 ThePublicOfficerEthicsAct | 17 | | CHAPTER THREE | CHAPTER THREE | 18 | | 3.0 APPROVALHEARINGPROCESS | 3.0 APPROVALHEARINGPROCESS | 18 | | 3.1 Clearance Requirements | 3.1 Clearance Requirements | 18 | | 3.2 Notification totheNominee | 3.2 Notification totheNominee | 61 | | 3.3 Notification to the Public | 3.3 Notification to the Public | 61 | | 3.4 Committees'Meetings | 3.4 Committees'Meetings | 20 | | CHAPTERFOUR | CHAPTERFOUR | 21 | | 4.0 THEAPPROVALHEARING | 4.0 THEAPPROVALHEARING | 21 | | 4.1 Mr. Naphtaly Kipchirchir Rono | 4.1 Mr. Naphtaly Kipchirchir Rono | 21 | | 4.1.1 AcademicandProfessionalqualifications | 4.1.1 AcademicandProfessionalqualifications | 21 | | 4.1.2 Employment Record and Work Experience | 4.1.2 Employment Record and Work Experience | 21 |

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| 4.1.3Relevant experience for the position of the Director General of the | 4.1.3Relevant experience for the position of the Director General of the | 4.1.3Relevant experience for the position of the Director General of the | |-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | Financial Reporting Centre- | Financial Reporting Centre- | 22 | | 4.1.4 Integrity and Leadership | 4.1.4 Integrity and Leadership | 22 | | 4.1.5Financialnetworth | 4.1.5Financialnetworth | 22 | | 4.1.6 Conflict of Interest | 4.1.6 Conflict of Interest | 22 | | 4.1.7 Public Office,Political Activities and Affiliations | 4.1.7 Public Office,Political Activities and Affiliations | 22 | | 4.1.8KeyIssuesArisingfromtheVettingProcess | 4.1.8KeyIssuesArisingfromtheVettingProcess | 22 | | 4.1.9 FATF grey-listing and international obligations | 4.1.9 FATF grey-listing and international obligations | 22 | | 4.1.10 Inter-agency coordination and national security | 4.1.10 Inter-agency coordination and national security | 23 | | 4.1.11 Emerging risks: virtual assets, trusts and NPOS | 4.1.11 Emerging risks: virtual assets, trusts and NPOS | 23 | | 4.1.12 TechnologyandData | 4.1.12 TechnologyandData | 24 | | CHAPTERFIVE | CHAPTERFIVE | 25 | | 5.0 | COMMITTEES'OBSERVATIONSANDFINDINGS | 25 | | 5.1 Committee observations on suitability of Mr.Naphtaly Kipchirchin RonotoserveastheDirectorGeneraloftheFinancialReportingCentre25 | 5.1 Committee observations on suitability of Mr.Naphtaly Kipchirchin RonotoserveastheDirectorGeneraloftheFinancialReportingCentre25 | 5.1 Committee observations on suitability of Mr.Naphtaly Kipchirchin RonotoserveastheDirectorGeneraloftheFinancialReportingCentre25 | | CHAPTERSIX | CHAPTERSIX | 27 | | 6.0 | COMMITTEES'RECOMMENDATION | 27 |

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LISTOFABBREVIATIONANDACRONYMS

DCI

DirectorateofCriminal Investigations

EACC

Ethics and Anti-Corruption Commission

FRC

Financial Reporting Centre

H.E.

His Excellency

HELB

HigherEducationLoansBoard

ICPAK

Institute of Certified Public Accountant of Kenya

KRA

Kenya Revenue Authority

ORPP

OfficeoftheRegistrarofPoliticalParties

POCAMLA

Proceeds of Crime and Anti-Money Laundering Act

Hearing forMr.NaphtalyKipchirchirRono theNomineeforAppointmentto thePositionof Director General of theFinancial Reporting Centre,Feb-2026).

ANNEXURES

Annexure I: Adoption List

Annexure2:Minutes

Annexure 3: Message from the Cabinet Secretary nominating the Director General of Financial Reporting Centre

Annexure 4:Communication from the Speaker of the National Assembly

Annexure 5: Advertisement notifying the public of the approval hearing

Annexure 6:Letters from theClerkof theNational Assembly inviting the nomineefor

the approval hearing

Annexure 7:Lettersfromthe Clerkof theNational Assembly toKRA,EACC,DCl,HELB andORPPrequestingforinformationonthenominee

Annexure&:LettersofclearancefromEACC,KRA,DCI,ORPPandHELB

Annexure9:Curriculumvitaeofthenominee

AnnexureIo:CertificatesandTestimonials

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CHAIRPERSON'SFOREWORD

This report contains the proceedings the Departmental Committee on Finance and Nat:onal Planning during the approval hearing of Mr. Naphtaly Kipchirchir Rono, nomineefor appointmentastheDirectorGeneral oftheFinancial ReportingCentre as forwarded by Cabinet Secretary for the National Treasury, Hon. FCPA John Mbadi, EGH, ar:d communicated to the House by the Speaker of the National Assembly.

Section 25 of the Proceeds of Crime and Anti- Money Laundering Act (POCAMLA) sets outtheofficeoftheDirector-GeneraloftheCentreandoutlinestheprocedurefor appointment,qualifications,and terms ofservice.Itprovides that the Director-General shall be a fit, competent, and proper person recommended by the Board and approved by the National Assembly, after which the Cabinet Secretary formally makes the appointment.

Section 28 of thePOCAMLA outlines the responsibilities of the Director-General as the Chief Executive Officer of the Centre, charged with its overall direction and management. It provides that theDirector-General isresponsible for establishing an efficient and performance-driven administration, maintaining control and discipline of staff, and making all decisions necessary for the exercise and performance of the Centre's objectives, powers, and functions. The section further requires the Director-General to carry out these duties in accordance with the policy framework prescribed by the Cabinet Secretary ontheadviceoftheBoard.

After receiving the message from the Cabinet Secretary on the nomination of Mr. NaphtalyKipchirchir Rono for thepositionof Director General of the Financial Reporting Centre, the Speaker of the National Assembly on Thursday, 4th December, 2025 issued a communication and directed that the approval hearing for the nominee for appointment to the position of Director General of the Financial Reporting Centre, be conductedasrequiredby theConstitutionandPOCAMLA.

The name of the nominee and his curriculum vitae were referred by the Speaker of the National Assembly to the Departmental Committee on Finance and National Planning. The Committee held a preliminary sitting on Monday 2nd February, 2026 to prepare for the approval hearing and to consider memoranda received from the public.

The Committee complied with the constitutional and legal requirements and established procedures for the approval hearing. The Committee adhered to the provisions of Article 118 of the Constitution on public participation and openness in carrying out the approval process. Notifications inviting the public to submit memoranda were placed in the mainstream print media on Tuesday 9th December,2025 as required under the law. Further, the Clerk of the National Assembly placed an advertisement in the local The Committee conducted the approval hearing on Monday 2nd February, 2026. In conducting the approval hearing, the Committee was guided by the Constitution, the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), Cap. 59A; the Public House and relevant statutoryprovisions.

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The Committee made observations, contained in this Report, on the basis of constitutionaland legalrequirements aswellassubmissionsofthenominee duringthe approval hearing.

Committee Recommendation

Having considered the suitability, capacity and integrity of the nominee, and pursuant to section 25 of the Proceeds of Crime and Anti- Money Laundering Act (POCAMLA), Cap and standing order 216(5)(f) of the National Assembly Standing Orders, the Departmental Committee of Finance and National Planning recommends that the National Assembly Director-General of the Financial Reporting Centre.

Acknowledgements

The Committee registers its appreciation to the Office of the Speaker of the National Assembly,Office of the Clerk of the National Assembly, the Office of the Director of Departmental Committees and the Committee Secretariat for the logistical support extended during the approval hearing process.

In addition, the Committee thanks the nominee for his cooperation during the Parliamentary approval hearing process. Finally, the Committee appreciates the DCl, EACC, HELB, KRA and ORPP for providing references and background checks relating tothesuitabilityofthenominee.

I acknowledge and appreciate Members of the Committee for their patience, sacrifice and commitment which enabled the Committee to complete the task within the required timelines.

On behalf of the Departmental Committee on Finance and National Planning, and pursuant: to Sections 3 and 5 of the Public Appointments (Parliamentary Approval) Act, 201lI and provisions of Standing Order 45 (4),it is my pleasure to present the Report of the Departmental Committee on Finance and National Planning on the Approval Hearing of Mr. Naphtaly Kipchirchir Rono, Nominee for Appointment as Director General of theFinancialReportingCentrefordebateandadoptionbytheHouse.

Signed....

Hon. FCPA. Kuria Kimani, CBS, MP

Chairperson

II+ Ees...a....

Date......

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IPREFACE

I.IESTABLISHMENTANDMANDATEOF THECOMMITTEE

• 1.The Departmental Committee on Finance and National Planning is one of twenty departmental committees of the National Assembly established under Standing Order 216 whose mandate pursuant to the Standing Order 216 (5) is as follows:
• a)To investigate, inquire into, nd report on all matters relating to the mandate, management,activities,admiistration,operationsandestimatesoftheassigned ministries and departments;
• b) and theeffectivenessoftheirnplementation;
• To, on a quarterlybasis,monitor and report on the implementation of the national budget in respect of its mandate;
• (P To study and review all legislation referred to it;
• el To study, assess and analyse the relative success of the ministries and departments as measured by the results obtained as compared with their stated objectives;
• To investigate and inquire into all matters relating to the assigned ministries and departments as they may deem necessary, and as may be referred to them by the House;
• g)Tovet andreport onall appointmentswhere theConstitutionor anylawrequires the National Assembly to approve, except those under Standing Order 204 (Committee on Appointments);
• i) To make reports and recommendations to the House as often as possible, including recommendations of proposed legislation;
• h)) To examine treaties, agreements and conventions;
• D To considerreportsof Commissions and Independent Offices submitted to the House pursuant to the provisions of Article 254 of the Constitution; and
• K) )To examine any questions raised by Members on a matter within its mandate.

2. The Second Schedule to the National Assembly Standing Orders assigns the Committee the mandate to consider matters in relation to public finance, public audit policies, monetary policies, financial institutions, economy, investment policies, competition, banking, insurance, national statistics, population, revenue policies including taxation, national planning and development, digital finance, including digital currency.

• 3.In executing gits mandate, the Committee oversees the following Ministries/Departments:
• a) The National Treasury.
• b) State Department for Economic: Planning

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CHAPTERONE

• c)StateDepartmentofPublicInvestmentandAssetManagement
• d)TheCommissiononRevenueAllocation(CRA)
• e)Office of theController ofBudget

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1.2COMMITTEEMEMBERSHIP

• 4.The Departmental Committee on Finance and National Planning was constituted by theHouseon27thOctober2022andcomprisesof thefollowingMembers:

Chairperson

UmA Party

Hon. FCPA Kuria Kimani, CBS, M? Molo Constituency

Vice-Chairperson

Hon. (Amb.) FCPA Langat Benjamin Kipkirui, CBS, MP Ainamoi Constituency UuA Party

Members

Hon. Peter Kaluma, CBS, MP cma Bay Town Constituency OM Party

Hon. Sunkuyia, R. George, MP Kajiado West Constituency UDA Party

Hon. FCPA Oyula, Joseph H. Maero, MP Butula Constituency

Hon. Betty N. Maina, MP

Murang'a County ULA Party

ODM Par'ty

Hon. Mboni, David Mwalika, MP Kitui Rural Constituency

Hon.Sheikh Umul Sheikh,MP Mandera County

WDM Party

UDM Party

Hon. Okuome Adipo Andrew, MP KarachuonyoConstituency CM Party

Hon. (Dr.) Shadrack Mwiti, MP South Imenti Constituency Jubilee Party

Hon. Chiforomodo, Munga, MP Lunga Lunga Constituency UDM Party

Hon. (Dr.) CPA Ariko J. Namoit, MP Turkana South Constituency ODM Party

Hon. CPA Rutto Julius Kipletting, MP Kesses Constituency UDA Party

Hon. Machele M. Soud, MP Mvita Constituency ODM Party

Hon. Paul Biego, MP Chesumei Constituency UA Party

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I.3COMMITTEESECRETARIAT

5.The Committee is facilitated by the following staff:

| Mr. Benjamin Magut Principal Clerk Assistant Il /Head of Secretariat | Mr. Benjamin Magut Principal Clerk Assistant Il /Head of Secretariat | |------------------------------------------------------------------------|------------------------------------------------------------------------| | Ms. Jennifer Ndeto DeputyDirectorLegalServices | Mr.BensonKamande Clerk Assistant III | | Mr.Salem Lorot Senior Legal Counsel | Ms. Winfred Kambua Clerk Assistant IlI | | Mr. George Ndenjeshe Fiscal Analyst II | Mr. James Macharia MediaRelationsOffice | | Mr.Andrew Jumanne Shangarai Principal Serjeant-At-Arms | Ms. Joyce Wachera Hansard Reporter II | | Mr. Benson Muthuri Assistant Serjeant-At-Arms | Ms. Nelly W. Ondieki ResearchOfficerIIl | | Mr. Mwangi Muchiri Audio OfficerIll | Mr. Allan Ngugi Committee Intern |

2.0LEGALFRAMEWORK

2.1 The Proceeds of Crime and Anti-Money Laundering Act, Cap 59A

• 6.Section 2I of the POCAMLA Act establishes the Financial Reporting Centre as a body contracts,andperformall actsnecessaryforitsmandate,whoseprincipalobjective is to assist in the identification of proceeds of crime and combating of money laundering, mandated to collect, analyse and share financial intelligence with investigating authorities, supervisory bodies, and foreign counterparts, promote compliance with international anti-money laundering standards, and facilitate enforcement of Kenyan laws.

2.2 TheOfficeoftheDirectorGeneralfFinancial ReportingCentre

• 7.Section 25 of the POCAMLA establishes the office of the Director-General of the Centre and outlines the procedure for appointment, qualifications, and terms of service. It provides that the Director-General shall be a fit, competent, and proper person recommended by the Board and approved by the National Assembly,after whichtheCabinetSecretaryformallymakestheappointment.

Responsibilities of the Director General

• 8.Section 28 of POCAMLA provides for the functions of the Director General of the Financial Reporting Centre in the following terms—-
• (1) The Director-General shall be the Chief Executive Officer of the Centre and shall be responsibleforitsdirectionandmanagement.
• (2) Without prejudice to the generality of subsection (l), the Director-General as the Chief Executive Officer shall beresponsible for--
• (a) the formation and development of an efficient and performance driven administration;
• (b)control and maintenance of discipline of staff and
• (c) taking all decisions of the Centre in the exercise, discharge and performance of the Centre's objectives,powers, functions and duties.
• (3)TheDirector-Generalshallperformthefunctionsoftheofficesubjecttothepolicy framework which may be prescribed by the Cabinet Secretary on the advice of the Board.

2.3Appointment ofa Director General of the Financial ReportingCentre

• 9.The appointment of a Director General of the Financial Reporting Centre shall take into consideration the provisions of section 25 of the POCAMLA. Section 25(4) providesforthequalificationsinthefollowingterms—

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CHAPTERTWO

• 25.(4)ApersonshallnotbeappointedasaDirector-General unlessthatperson—
• (a)holdsadegreeinlaw,publicadministration,management,international relations, economicsorfinancefromarecognisedinstitution;
• shall be in senior management; and

10. Pursuant to standing order 42(l) of the National Assembly Standing Orders and, the Speaker of the National Assembly on Thursday, 4th December, 2025, conveyed a message to the House from The Cabinet Secretary National Treasury on the DirectorGeneral oftheFinancial ReportingCentre.

2.4 Constitutional and statutory requirements in parliamentary approval of publicappointments

• Il. The Constitution and various statutes provide clear framework on conduct of
• (a) Chapter 6 of the Constitution (leadership and integrity); Article 10 of the Constitution (national values and principles of governance);Article 124(4) of the Constitution (public access and participation); Article 232 of the Constitution (values and principles of public service);
• (b) The Public Appointments (Parliamentary Approval) Act, Cap. 7F;
• (c) The Leadership and Integrity Act, Cap I85C;
• (d) The Central Bank of Kenya Act, Cap 491;
• (e) The Public Service (Values and Principles) Act, Cap. I85A; and
• (f) The Public Officer Ethics Act, Cap. I85B.

2.5 Constitutional Provisions

12. The Constitution sets out certain requirements regarding the appointment of persons topublicofficewhichinclude:

Chapter Sixon Leadership and Integrity

13. The Committee, in determining the suitability of the nominee, took into consideration the provisions on leadership and integrity as outlined under Chapter Six of the Constitution. In particular, the Committee took cognizance of the following provisions-

• i. Article 73(2) of the Constitution that provides that the guiding principles of leadership and integrity include-

3. election in free and fair elections;

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• (b) objectivity and impartiality in decision making, and in ensuring that decisions are not influenced by nepotism,favoritism,other improper motives or corruptpractices;
• (c) selfless service based solely on the public interest,demonstrated by—
• (i)honestyintheexecutionofpublicduties;and
• (i) the declaration of anypersonal interest that may conflict withpublic duties;
• (d)accountabilitytothepublicfordecisions ancactions; and
• (e) discipline andcommitmentinservice to thepeople.
• ii. Article 75(l) of the Constitution that requires a state officer, whether in public orprivatelife,tobehaveinamannerthat avoidsconflictbetweenpersonal interestandpublicofficialdutiesandArticle75(3)oftheConstitutionthat prohibitsastateofficerwhohasbeenremovedfromofficeunderthatArticle fromholding any otherState office.
• ili. Article77(l)oftheConstitutionthatprohibitsafull timeStateofficerfrom
• iv. Article 77(2) of the Constitution that prohibits an appointed State officer from holding office in a political party.
• V. citizens and persons holding dual citizenship from appointment as State officers. ArticleIo(2)oftheConstitutiononnationalvaluesandprinciplesofgovernance
• 14.Article I0(2) of the Constitution provides for the national values and principles of governancewhichincludepatriotism,nationalunity,sharinganddevolutionofpower, the rule of law, democracy and participation of the people; human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination and protection of the marginalised; good governance, integrity, transparency and accountability; and sustainabledevelopment.

ArticleIl8oftheConstitution

15. Article I l8 of the Constitution obligates Parliament to conduct its business in an open manner, and that its sittings and those of its committees shall be in public; and that Parliament shall facilitate public participation and involvement in the legislative and other business of Parliament and its committees. It also provides that Parliament may not exclude the public, or any media, from any sitting unless in exceptional circumstances the relevant Speaker has determined that there are justifiable reasons for the exclusion.

Article 124(4) of the Constitution on parliamentary approval of public appointments

16. Article I24(4) of the Constitution provides that when a House of Parliament considers of Parliament, the appointment shall be considered by a committee of the relevant 2. 14|Page(Report of theDepartmental Committee onFinance&National Planning,on theApproval HearingforMr.NaphtalyKipchirchirRonotheNomineeforAppointmenttothePositionofDirector GeneraloftheFinancialReportingCentre,Feb-2026).

House;thecommittee'srecommendationshallbetabledintheHouseforapproval; andtheproceedingsofthecommitteeandtheHouseshallbeinpublic.

Article232oftheConstitutiononValuesandPrinciplesofPublicService

17. Article 232 of the Constitution provides for the values and principles of public service whichincludehighstandardsofprofessional ethics;efficient,effectiveandeconomic use of resources; responsive, prompt, effective, impartial and equitable provision of services; involvement of the people in the process of policy making; accountability for administrative acts; transparency and provision to the public of timely, accurate information; fair competition and merit as the basis of appointments and promotions; representationofKenya'sdiversecommunities;andaffording adequateand equal opportunitiesfor appointment,trainingandadvancement,atall levelsofthepublic service of men and women; the members of all ethnic groups; and persons with disabilities.

2.6 The Public Appointments (Parliamentary Approval) Act, Cap. 7F

• 18.Section 7 of the Public Appointments (Parliamentary Approval) Act provides for issues which Parliament is supposed to consider in relation to any nomination. These are—
• (a)theprocedureusedto arrive atthenominee;
• (b) any constitutional or statutory requirements relating to the office in question; and
• (c) the suitability of the nominee for the appointment proposed having regard to whether the nominee's abilities, experience and qualities meet the needs of the boty to which nomination is being made.

19. Section 6 of the Act provides direction on the conduct of approval hearing. These are:

• (a)Anapproval hearing shall focus ona candidate's academic credentials, professional training ande experience, personal integrity and background (section 6(7));
• (b)Thecriteriaspecified in theScheduleshallbeusedbyaCommitteeduringan
• toholdtheofficetowhichthecandidatehasbeennominated(section6(9));
• (d) A candidate may, at any time, by notice in writing addressed to the Clerk(s), (section 6(1o)).
• 20.Theperiodfor considerationof nomination is alsosetoutin theAct.Section8(l)of theActprovidesthattheCommitteeshall considerthenomination and tableitsreport to theHousefordebateanddecisionwithintwenty-eight(28)daysfromthedateon which the notification of nomination was given.Section 9 of the Act stipulates that

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where the House(s) does not meet the prescribed timelines, the nominee shall be deemed tohavebeen approved.

• 21.Pursuant to section 6(8) of the Act, the criteria for vetting is comprehensively contained intheQuestionnairein theSchedule totheAct.TheQuestionnaire allows the Committeeto obtain information on,amongother things--
• (a) Names of the nominee—to enable the Committee to ascertain the regionall background and ethnicity of the nominee.
• () Gender of the nominee—to enable the Committee to ascertain the gender of the nominee. This is to ensure compliance with Article 27(8) that requires the State to take measures to ensure thar not more than two thirds of members of appointive bodies shall be of the same gender;
• (c) Age of the nominee — to enable the Committee to ascertain compliance with theprovisionsofArticle55oftheConstitutiononinclusionoftheyouthin public appointments;
• (d) Nationalityofthenominee—toenabletheCommitteetoascertainthe nationalityofthenominee.ThisistoensurecompliancewithArticle78ofthe Constitution which requires certain State officers to be Kenyan Citizens;
• (1) Employment record of the nominee;
• (e) Educational background of the nominee;
• (g) Honours or awards given to the nominee;
• (h) Membership of the nominee to professional bodies;
• (i) Public office and political affiliations held by the nominee — to enable the Committee to ascertain whether the nominee hold office in a political party. This is to ensure compliance with Article 77(2) of the Constitution which precludes appointed State officers from holding office in a political party;
• Informationonwhetherthenomineehavebeenreniovedfromofficeunder Article 75 of the Constitution which prohibits a state officer who has been removed from office under Article 75 (3) of the Constitution from holding any otherState office;
• (k) Nominee' finances;
• (1)Outside commitments that the nominee intends to undertake while in office (if appointed).Article77(l)oftheConstitutionprohibitsafull timeStateofficer from participating in any other gainful employment;
• (m) Tax compliance status of the nominee;
• (n)Potentialconflictofinterest—Article75(l)oftheConstitutionbarsState official or public duties and personal interests;
• (o) Whether the nominee has been charged in a court of law in the past three years;and
• (p) Whether the nominee has been adversely mentioned in a report of Parliament or a Commission of inquiry in thepast threeyears.
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22. The Questionnaire is largely formulated based on Constitutional and statutory requirementsforStateOfficersandotherconsiderationsthatareofimportancein order tomake adeterminationon thesuitabilityof thenominee.

2.7 The Leadership and Integrity Act

23. The Leaciership and Integrity Act place a number of obligations on a State officer. These include to respect and abide by the Constitution and the law, public trust, performanceofdutiesinanhonestandaccountablemanner,professionalism,financial integrity, not to engage in activities that amount to abuse of office, not to misuse public resources, accepting gifts that may compromise the officer's duties, wrongful or unlawful acquisition of property, and conflict of interest. 2. 24.In addition, section 10 cf the Leadership and Integrity Act, 2012 in particular provides that a State officer shall, to the best of their ability- 3. (a) carry out the duties of the office efficiently and honestly; 4. (b) carry out the duties in a transparent and accountable manner; 5. (c) keep accurate records and documents relating to the functions of the office; and

2.8 The Public Service (Values and Principles) Act

25. Section 5 of the Public Service (Values and Principles) Act provides that a public officer shall maintain high standards of professional ethics, including, being honest; displaying high standards of integrity, transparency, accountability, respect to others, objectivity, patriotism, and observance of rule of law.

2.9ThePublicOfficerEthicsAct

26. The Public Officer Ethics Act provides for obligations to be carried out by a public officer. These include professionalism, carrying out duties in accordance with the law, prohibitionfrom unjust enrichment,avoidingconflictof interest,notusingofficeas a political neutrality, not practicing nepotism or favoritisms, giving impartial advice, conductingprivateaffairsinawaythatmaintainspublicconfidence,barfromsexual harassment, and submission of declaration of income, assets and liabilities once every twoyears.

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CHAPTERTHREE

3.0APPROVALEARINGPROCESS

• 27.Pursuant to Standing Orders 45(1) and 77(l) of the National Assembly Standing Orders, the Speaker of the National Assembly referred the nomination of Mr. Naphtaly Kipchirchir Rono to the position of Director General of the Financial Reporting Centre to the Departmental Committee on Finance and National Planning, to conduct apprval hearing and table a report to the House within the stipulated period.

3.1 Clearance Reruirements

• 28.Followingthereferralof thenomination to theCommittee,theClerkof theNational Assembly requested information on the nominee from the following statutory agencies-

29. The Clerk of the National Assembly received responses from various State agencies as follows-

• (a) by letter dated 23rd January, 2026 Ref: EACC.7/10/5 VOL XXXV (41) the Ethics and Anti-Corruption Commission indicated that the nominee is not under any investigation
• (b)by aletter dated 22"dJanuary,2026Ref:ORPP/ORG/34VOLIX(52) theOffice oftheRegistrarofPoliticalPartiesindicatedthatthenomineeisnotan official of any registered political party.
• theDirectorateofCriminal Investigationsindicatedthatthenomineehas no previous criminal records.
• (d)by a letter dated 2I" January, 2026 Ref:HELB/RR/112009/V/472 the Higher Education Loans Board indicated that the Nominee has complied with the institution.
• 30.Additionally, the nominee presented before the Committee clearances from the Directorate of Criminal Investigations, the Higher Education Lcans Board, the Ethics
• 18|Page(ReportoftheDepartmentalCommitteeonFinance&NationalPlanning,ontheApproval Hearing forMr.NaphtalyKipchirchirRono theNomineeforAppointmentto thePositionofDirector GeneraloftheFinancial ReportingCentre,Feb-2026).

| | Institution | The nature of the information sought. | |----|--------------------------------------------|-------------------------------------------------------| | 1. | Ethics&Anti-CorruptionCommission | Compliance with Chapter6ofthe Constitution | | 2. | Kenya Revenue Authority | Tax compliance | | 3. | Higher Education Loans Board | Loans obligation | | 4. | Directorate of Criminal Investigations | Any criminal charge or conviction | | 5. | Office of theRegistrar of PoliticalParties | Membership in any governing body of a Political Party |

and Anti-Corruption Commission, the Kenya Revenue Authority and the Office of the Registrar ofPolitical Parties.

3.2Notification to theNominee

• 31.By a letter dated 21st January, 2026 Ref. No. NA/DDC/F&NP/2026/37 the Clerk of the National Assembly and pursuant to section 6(3) of the Public Appointments the approvalhearing.
• 32.The nominee was required to present his original identity card, academic and professional certificatesandotherrelevanttestimonials.Additionally,thenomineewas requested to bring clearances from the Ethics and Anti-Corruption Commission, KenyaRevenueAuthority,HigherEducationLoansBoard andDirectorateof Criminal Investigations and theOfficeoftheRegistrarofPoliticalParties.
• 33.Further, the nominee was required to fill and present to the Committee the Act,2011.

3.3Notification to the Public

• 34.Pursuant totheprovisionsofArticle1l8of theConstitution,section6(3)oftheAct andStandingOrders45(3)and77(2)of theNationalAssemblyStandingOrders,the Clerk of the National Assembly notified the general publicofthe intention ofboth Mini-Chamier at County Hall.

35. Section 6(9) of the Public Appointments (Parliamentary Approval) Act, 20I I permits anyperson to provide the Clerk of the National Assembly with evidence contesting the suitability of a candidate tohold the office towhich the candidate has been nominated. Notably, such evidence should be provided to the Clerk of the National Assembly in the form of a written staternent made on oath and must be submitted before the approval hearing. 36. Consequently, the Clerk of National Assembly placed advertisement on Tuesday 9th December, 2025, inviting the public to submit memoranda on the suitability or otherwise of the nominee on or before Tuesday, 22nd December,2025 at 5.00 pm.

• 37.By the close of business on Tuesday, 22nd December, 2025, no memoranda had been received either in support or against the nominee.

19|Page(ReportoftheDepartmental CommitteeonFinance&NationalPlanning,ontheApproval Hearing forMr.NaphtalyKipchirchirRono theNominee forAppointmenttothePositionof Director GeneraloftheFinancialReportingCentre,Feb-2026).

3.4Committees'Meetings

38. Prior to the approval hearing on Monday, 2nd February, 2026, the Committees held a preparatory meeting to agree on the conduct of the apprval hearing.

20|Page(Report of theDepartmental Committee onFinance&National Planning,on theApproval HearingforMr.NaphtalyKipchirchirRono theNomineeforAppointmentto thePositionofDirector GeneraloftheFinancialReportingCentre,Feb-2026).

CHAPTERFOUR

4.0THEAPPROVALHEARING

39. Mr. Naphtaly Kipchirchir Rono, the nominee for appointment to the position of Director General Financial Reporting Centre, appeared before the National Assembly Departmental Committee on Finance and National Planning on Monday, 2nd February, 2026 at I0.00 am for the approval hearing. 40. In conducting the approval hearing, the Committee was guided by, among others, the Constitution, the Procceds of Crime and Anti- Money Laundering Act (POCAMLA), and Integrity Act, Cap. I85C and the National Assembly Standing Orders. 3. and work experience, membership to relevant professional associations, public office, political activities and affiliations,potential conflict of interest,suitability to the position, tax compliance, integrity and other thematic areas relevant to the duties and responsibilities of a Director General of Financial Reporting Centre.

4.1 Mr. Naphtaly Kipchirchir Rono

• 42.The nominee is a 5l-year-old male Kenyan citizen and does not hold any other citizenship. He was born on I't January, I975 in Nandi County.

4.1.1 Academic and Professional qualifications

• 43.The nominee holds a Masters of Laws (LLM) in International Financing Law and RegulationfromStrathmoreUniversity,aPostgraduatediplomainLawfromKenya School of Law (KSL), and a Bachelor of Laws (LLB) Degree from the University of Nairobi.He stated that his career inintelligence and lawenforcementhasgiven him responses,which are central to themandate oftheFinancial ReportingCentre.In addition, his legal and leadership roles have built solid capacity in regulatory compliance and strategic management required to guide the Centre effectively.

4.1.2 Employment Record and Work Experience

44. The nominee has worked in the following capacities: 2. a)as a Deputy Director Counter Intelligence, National Intelligence Service from 2024toDate;

• b) as an Assistant Director Counter Terrorism, National Intelligence Service, from2023toAug2024;

4. P IntelligenceService,from2022to July2023; 5. d)as a Commissioner/ Member,National Police Service Commission from 2019 toOct2022; 6. 21|Page(ReportoftheDepartmentalCommitteeonFinance&NationalPlanning,ontheApproval HearingforMr.NaphtalyKipchirchirRonotheNomineeforAppointmenttothePositionofDirector General oftheFinancialReportingCentre,Feb-2026). 7. e)as Head of Legal Department,National IntelligenceService from2008to 2018; 8. 2007;

• g) as a Legal Officer, National Intelligence Service frcm 2004 to 2006;
• h) as a Graduate Trainee, National Intelligence Service from 2001 to 2003;

11. i)as an Associate Advocate, Kiplagat & Associates /locates from I999 to 2000.

4.1.3 Relevant exerience for the position of the irector General of the Financial Reporting Centre -

45. The nominee has cover 25 years of experience at the intersection of law, security, roles in the National Intelligence Service, including Head of Legal for over I0 years, advising the Director General on all legal matters

4.1.4Integrity anriLeadership

46. The nominee staed that he has not been charged in a cou:t of law or mentioned in any investigatory reports of Parliament or any Commission of nquiry in the last three 2. (3)years.Further,hehasneverbeendismissedorotherwiseremovedfromoffice for contraventionoftheprovisionsofArticle75oftheConsiitution.

4.1.5 Financialnetworth

• 47.The nominee estimated his net worth to be Ksis.l0l,000,000 of which KShs.49,800,000 are in liabilities. These comprises Land an 5uildings in Nandi, house in Nairobi, Sacco shares, farm machinery and structures, livestock, vehicles and cash in bank. His liabilities include a mortgage and Sacco loan he's financing.

4.1.6ConflictofInterest

48. The nominee declared that he is currently not associated with any persons or matters that would presen a potential conflict of interest should he assume the office as the Director General cf the Financial Reporting Centre.

4.1.7 Public Office, ?olitical Activities and Affiliations

49. The nominee informed the Committee that he is not a member of any political party.

4.1.8 Key Issues Arising from the Vetting Process

• 50.The nominee informed the Committee that, if appointed to the position of the Director General of the Financial Reporting Centre he would endeavor to deal with key issues in the following broad areas.

4.1.9 FATF grey-listing and international obligations

51. The core issue driving Kenya's Grey Listing is not just laws but weak effectiveness in prosecuting and managing AML/CFT outcomes. The nominee informed the Committee that Kenya was grey-listed in 20ll due to technical compliance deficiencies, particularly the absence of operational legislation and institutional 2. 22|Page(Report of the Departmental Committee on Finance&National Planning,on the Approval HearingforMr.NaphtalyKipchirchirRono theNomineeforAppointmenttothePositionofDirector General oftheFinancialReportingCentre,Feb-2026).

frameworks. He observed that the 2024 grey-listing arose from both technical and effectiveness gaps, including regulation of virtual asset service providers, implementation of targeted financial sanctions, transparency of beneficial ownership in trusts, and limited demonstrable outcomes in prosecutions and asset recovery. He noted that ten out of twenty-one action plan items had been addressed, with substantialprogress on theremainingitems.

52. On balancing FAFT obligations with national interest, the nominee informed the Committee that if appointed compliance with FATF standards would be pursued within the Constitution and in partnership with national security institutions. He emphasized that international cooperation would not compromise Kenya's sovereigty or securitypriorities. 53. Additionally, he emphasized that in his first lo0 days he would focus to address at least six action plan items on establishing a high-functioning coordination framework,

4.1.10 Inter-agency coordination and national security

54. The nominee noted that financial intelligence is central to counter-terrorism and organizedcrirneefforts.He noted thatthereis need for theFRCtobeintegrated within the national security architecture while retaining its civilian statutory mandate. 2. 55.The nominee observed that effective AML/CFT outcomes depend on strong collaborationwiththeDCl,ODPP,KRAandotheragencies.Heproposedstructured engagement forums, joint investigations, standardized operating procedures, and formal information-sharing protocols to enhance efficiency. Additionally, he acknowledged legal and operational constraints in intelligence sharing and proposed development of MOUs, secure ICT platforms, inter-agency forums, and a culture of confidentiality to formalizeroles andreduceoperational conflicts.. 56. On Collaboration with Unclaimed Financial Assets Agency, He stated that if appointed astheDG,FRC wouldworkwithUFAAthroughsharing beneficialownership information, screening of designated persons, joint training, and exchange of data sanctioned persons lists between agencies will prevent asset reunification with illicit actors and joint expertise sharing on data management and joint training on data

4.1.IIEmerging risks: virtual assets, trusts and NPOS

57. The nominee observed that cryptocurrencies and peer-to-peer platforms present risks due to anonymity and cross-border speed.Hehighlighted that therecently enactedVirtualAssetServiceProviderslegislationwouldbeoperationalized,andhe would build technical capacity, recruit experts, deploy blockchain and chain-analysis

23|Page(ReportoftheDepartmentalCommitteeonFinance&NationalPlanning,ontheApproval HearingforMr.NaphtalyKipchirchirRonotheNomineeforAppointmenttothePositionofDirector GeneraloftheFinancialReportingCentre,Feb-2026).

tools, and conduct public awareness campaigns. He also stressed collaboration with

58. On how trusts could be regulated, the nominee noted that ongoing reforms including beneficial ownership requirements and the proposed Trust Administration Bill are key n n pa a lm g emphasized that collaboration with Parliament and stakeholders like the Law ociety and trust service providers will be key to fast-tracking reforms. Additionally, efective reform on trusts will support Kenya's efforts to exit the FATF Grey List by ariclressing criticaltransparencydeficiencies. 2. 59.Reform is also required for designated non-financial businesses and professions The Asset Agents Registration Board's legislation needs modernization to imprcve supervisory capacity and compliance. Enhancing DNFBP supervision is essential since these sectors shewed weak risk-based supervision during FA?i evaluations.

4.1.l2TechnologyandData

60. Adopting advanced technology and data tools is vital to handle increasing data complexity andsophisticated financialcrimes.Thenominee noted that if appointed, he plans to lever.go Al, machine learning, and blockchain analytics to detect complex financial crime t<tvorks and prioritize suspicious transactions. Additionally, recruitment cf technology experts and procurement of advanced surveillance tools are planned to build RC's technical capacity. 61. He highlighted that public sensitization campaigns will raise awareness of risks linked tovirtualasscts andPonzi schemes.Whereas,cross-border partnerships with countries advanced in virtual asset regulation will support knowledge transfer and enforcement. 62. Mr. Rono emphasized upholding national values, governance principles, and ongoing engagementwithParliamentonpendingAML/CFTissues. 4. 63.He afirmedreadinesstobe accountable andproactive in driving improvements to meet FATF requirements and national security goals.

24|Page(Report of theDepartmental Committee onFinance&NationalPlanning,on theApproval HearingforMr.NaphtalyKipchirchirRonotheNomineeforAppointmenttothePositionofDirector GeneraloftheFinancialReportingCentre,Feb-2026).

CHAPTERFIVE

5.0 COMMITTEE'SOBSERVATIONSANDFINDINGS

5.1 Committee observations on suitability of Mr.NaphtalyKipchirchirRono to serve as the Director General of the Financial Reporting Centre

64.The Committeeobserved that:

• a)THAT in accordance with Article 78(1) and (2) of the Constitution, the nominee is a Kenyan citizen and does not hold dual citizenship;
• b) THAT the nominee holds a Master's Degree in Law (LLM) in International Finance from Strathmore University and a Bachelor's Degree in Law (LLB) from the School of Law.
• c) THAT the nominee's career life spans over 25 years in law, governance, and
• d)THAT the nominee presented his academic credentials and professional certificates and demonstrated his experience in accordance with the provisions of ) ) s n (
• e)THAT the nominee meets the requirements of Chapter 6 of the Constitution on leadership and integrity having been issued with clearance certificates by the relevant statutory agencies such as EACC, KRA, DCl, ORPP and HELB;
• f)THAT he has never been charged in a Court of Law in the last three years.
• g) THAT as stipulated in Article 75(l) of the Constitution, he has no potential conflict of interest;
• h) THAT the nominee does not hold office in any political party hence satisfies the provisions of Article 77(2) of the Constitution; this was confirmed by the Office of theRegistrarofPoliticalParties;
• i) THAT he has never been dismissed from office under Article 75 of the Constitution for contravention of the provisions of Articles 75(l) (conflict of ) ( (o citizenship)oftheConstitution;

25|Page(ReportoftheDepartmental CommitteeonFinance&NationalPlanning,ontheApproval HearingforMr.NaphtalyKipchirchirRono theNomineeforAppointmenttothePositionofDirector General oftheFinancial ReportingCentre,Feb-2026).

• i) THATby the deadline of rercipt of memoranda from members of the public, the Clerk of the National Assermily had received no remorandum contesting the suitabilityofthenominee.
• K) )THA.T the nominee demnstrated knowledge of topical,administrative and technical issuies touching on financial reporting and had the requisite bilities, qualificationsandexperiencetoserveastheDirector-GeneraloftheFinancial ReportingCentre.

26 | Page (Report of the Departmental Committee on Finance & National Planning, on the Approval HearingforMr.NaphtalyKipchirchirRono theNomineeforAppointmentto thePositionofDirector GeneraloftheFinancialReportingCentre,Feb-2026).

CHAPTERSIX

6.0 COMMITTEE'SRECOMMENOATION

65. Having considered the suitability, capacity and integrity of the nominee, and pursuant to section 25 of the Proceeds of Crime and Anti- Money Laundering Act (POCAMLA), Cap.59A; sections 3 and 8 of the Public Appointments (Parliamentary Approval) Act, Cap. 7F; and standing order 216(5)(f) of the National Assembly Standing Orders, the Departmental Committee of Finance and National Planning recommends that the National Assembly AFPROVES the nomination of Mr. Naphtaly Kipchirchir Rono for appointment as Director General of the Financial Reporting Centre.

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FOURTHSESSION-2026 DEPARTMENTALCOMMITTEEONFINANCEANDNATIONALPLANNING.

ADOPTIONLIST

REPORTONTHEAPPROVALHEARINGOFMRNAPHTALYKIPCHIRCHIRRONO NOMINEEFORAPPOINTMENTASDIRECTORGENERAL,FINANCIALREPORTING CENTRE

We,theMembersof theDepartmental CommitteeonFinance and National PlanninghavepursuanttoStanding OrderI99,adopted thisReportand affixoursignaturestoaffirmour approval andconfirm itsaccuracy,validity andauthenticitytoday,Monday,2ndFebruary2026.

| SINO. | NAME | SIGNATURE | |---------|-------------------------------------------------------------|-------------| | 1. | HON.FCPA.KURIAKIMANI,CBS,MP- CHAIRPERSON | | | 2. | HON. (AMB).FCPA BENJAMIN KIPKIRUI LANGAT,MP-VICECHAIRPERSON | | | 3. | HON.KALUMAPETEROPONDO,CBS,MP | | | 4. | HON.GEORGESUNKUYIARISA,MP | mmmy | | 5. | HON.FCPAJOSEPHMAEROOYULA,OGW,MP | | | 6. | HON.ANDREWADIPO OKUOME,MP | | | 7. | HON.DAVIDMWALIKAMBONI,MP | | | 8. | HON.CHIFOROMODOMANGALE,MP | | | 9. | HON. MAINA BETTY NJERI, MP | | | 10. | HON. (CPA) JULIUS KIPLETTING RUTTO, MP | | | I1. | HON.PAUL KIBICHIY BIEGO, MP | | | 12. | HON.UMUL KER SHEIKH KASSIM, MP | | | 13. | HON.DR.SHADRACK MWITI ITHINJI,MP | | | 14. | HON.DR.JOHN ARIKO NAMOIT,MP | | | 15. | HON.MOHAMEDSOUD MACHELE,MP | |