Parliament vets nominee for FRC Director-General post Rono

The nominee for the position of Director-General of the Financial Reporting Centre (FRC), Naphtaly Kipchirchir Rono, on Monday appeared before the National Assembly’s Departmental Committee on Finance and National Planning for vetting.

The committee, chaired by Francis Kuria Kimani, questioned Rono on his suitability for the role at a time when Kenya is under increased international scrutiny over financial integrity and the fight against money laundering and terrorism financing.

Rono is currently serving as Deputy Director in charge of Counter-Intelligence at the National Intelligence Service (NIS). He is an advocate of the High Court of Kenya and holds a Bachelor of Laws degree from the University of Nairobi and a Master of Laws in International Financial Law and Regulation.

His vetting comes amid Kenya’s renewed efforts to strengthen its anti–money laundering and counter-terrorism financing framework, following the country’s grey-listing by the Financial Action Task Force (FATF) in 2010 and again in 2024.

Members of the committee sought to establish how Rono intends to leverage his professional and academic experience to lead the FRC, particularly in combating terrorism financing and illicit financial flows.

In response, Rono told the committee that his previous work in the counter-terrorism and financial intelligence space contributed to Kenya’s removal from the FATF grey list in the past. He said he brings practical experience in inter-agency coordination and international compliance.

Treasury Cabinet Secretary John Mbadi nominated Rono for the position, citing the urgency created by Kenya’s grey-listing by the FATF in February 2024. The global financial crime watchdog placed the country under increased monitoring due to weaknesses in its anti–money laundering and counter-terrorism financing systems.

Kenya remained on the grey list following the FATF’s most recent review in October 2025, a status that signals vulnerabilities in the country’s financial systems and exposes it to reputational and economic risks.

Studies indicate that grey-listing can reduce foreign direct investment by up to three per cent, raise the cost of doing business, and limit access to international capital markets.

The Kenya Kwanza administration appears to have banked on Rono’s background to help steer the country out of the crisis. A lawyer by training, he previously served as head of legal affairs at the NIS for over a decade and was part of the taskforce that worked to secure Kenya’s earlier delisting from the FATF grey list.

If approved, Rono will be tasked with leading the FRC—the country’s primary financial intelligence unit—in implementing a national action plan to address the FATF’s 21 identified deficiencies, 11 of which remain unresolved.

Progress has already begun on the legislative front, with Parliament enacting the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025. The law, signed by President William Ruto in June 2025, is regarded as the cornerstone of the government’s response.

The amendments seek to close loopholes in property transactions and curb the misuse of shell companies for illicit financial flows. They also introduce a standalone offence for terrorism financing and strengthen regulatory oversight of high-risk sectors, including real estate, mining, betting, and non-profit organisations.

However, stakeholders warn that legal reforms alone will not be sufficient. The FATF and civil society organisations maintain that Kenya’s removal from the grey list will ultimately depend on demonstrating tangible enforcement outcomes, including a sustained increase in investigations, prosecutions, and convictions in major money laundering cases.

Despite repeated concerns raised by government officials over widespread money laundering, the country has yet to secure successful prosecutions in high-profile cases.