Kenya eyes revival of World Bank funding on bill signing
By John Otini, August 1, 2025President William Ruto has signed into law the long-awaited Conflict of Interest Bill, 2023, raising hopes that it could help unlock a $750 million loan previously withheld by the World Bank.
The loan had been expected to support Kenya’s 2024/25 budget, but concerns over governance—including the lack of a credible legal framework to manage conflicts of interest—led to delays in disbursement.
The new law is a consolidation of various ethics-related provisions across existing statutes. It repeals the Public Officer Ethics Act (Cap. 183B) and replaces it with a single, unified legal framework aimed at addressing the abuse of public office for private gain.
Oversight and enforcement of the new law have been delegated to the Ethics and Anti-Corruption Commission (EACC), in line with Article 79 of the Constitution.
“The principal object of the Bill is to consolidate the laws relating to conflict of interest by repealing the Public Officer Ethics Act (Cap. 183B) and establishing a framework for managing conflicts of interest in the discharge of public duties,” reads part of the parliamentary brief forwarded to the President earlier this month.
The Bill’s path to becoming law has not been straightforward. Initially passed by the National Assembly in November 2024, it was forwarded to the Senate and approved in May 2025.
However, President Ruto withheld assent in April after raising concerns that the law had been weakened during debate and amendment stages. A mediation committee resolved the differences, and a revised version was passed by the Senate on July 23, 2025. The law now introduces a comprehensive list of prohibitions targeting practices that create opportunities for personal enrichment in public service.
It prohibits public officers from engaging in decision-making processes where they or their associates have financial or other personal interests. This includes involvement in procurement decisions, awarding of service contracts, and disposal of public assets.
“The Bill consolidates provisions relating to conflict of interest under one law,” notes the document. “These include prohibiting a public officer from entering into contracts for the supply of goods and services… as well as contracts for the disposal of goods and services by the public officer’s employing entity.”
The law also requires mandatory disclosure of interests by public officials. This extends beyond the officers themselves to include their spouses and dependents, a provision aimed at tightening the net around indirect channels of enrichment.
Public officers will now be obligated to declare conflicts before participating in meetings, discussions, or decisions where personal interest may arise.
Further, the new law outlines consequences for failure to disclose such interests. In addition to administrative sanctions, the EACC is expected to initiate enforcement actions that could include prosecution for non-compliance, where applicable. Another key component of the law is the creation of internal mechanisms within public institutions to detect and manage potential conflicts. Every public body will now be required to develop internal policies aligned with the new law, including training for staff and periodic declarations of interest.
The Bill was sponsored by Majority Leader Kimani Ichung’wah and was championed by several governance stakeholders who viewed it as a major tool in closing integrity gaps in the public service. It has taken over a year to move through Parliament, Senate, and now the Presidency.