Affidavit of source of funds in Kenya

Affidavit of Source of Funds in Kenya

When your bank, lawyer, or regulator asks you to explain where your money came from, they’re not being intrusive they’re ensuring compliance with Kenya’s anti-money laundering laws.

An Affidavit of Source of Funds in Kenya confirms that the money you are using for a transaction was obtained through legitimate means. It is a key document that promotes financial transparency, accountability, and legal compliance in high-value or sensitive financial dealings.

Under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) and the Central Bank of Kenya AML Guidelines, individuals and businesses must be able to demonstrate the lawful origin of their funds when engaging in certain transactions.

When You Need an Affidavit of Source of Funds

You may be required to prepare and swear an affidavit of source of funds in Kenya in situations such as:

• Property purchases or sales – land, apartments, or commercial buildings.

• Large bank deposits or transfers – especially those exceeding reporting thresholds.

• Company registration or investment – to verify capital contributions.

• Vehicle or asset acquisition – when buying high-value assets.

• Foreign remittances or donations – to confirm lawful receipt of money.

• Court or investigation processes – where proof of the source of money is necessary.

This affidavit protects both the individual and the receiving institution by ensuring transparency and preventing the use of proceeds from illegal activities.

Essential Contents of the Affidavit

A properly drafted affidavit of source of funds in Kenya should contain the following:

1. Deponent’s Details – Full name, ID or passport number, address, and occupation.

2. Purpose – The reason for the affidavit (e.g., to support a property purchase).

3. Source of Funds – Clearly explain how the money was obtained:

   • Employment income or bonuses

   • Business profits

   • Sale of assets or property

   • Inheritance or gift

   • Dividend, investment, or loan proceeds

4. Supporting Evidence – Reference bank statements, payslips, or sale agreements.

5. Declaration of Truth – A sworn statement that the information is true and the funds are lawful.

6. Signature and Commissioning – Must be signed before a Commissioner for Oaths, Advocate, or Notary Public.

Example of an Affidavit of Source of Funds

Sample extract:
“I, Jane Wambui Njoroge, of ID No. XXXXXXX, residing in Nairobi, do hereby solemnly affirm and state that the sum of Kenya Shillings Five Million (Kshs. 5,000,000) used to purchase Land Parcel No. XXXX originates from savings accumulated during my employment at ABC Limited between 2015 and 2024. I make this declaration in good faith and confirm that the funds are lawfully obtained.”

This example illustrates the clarity, honesty, and legal formality expected in every affidavit.

How to Prepare an Affidavit of Source of Funds in Kenya

1. Engage an Advocate – Consult a qualified Advocate of the High Court of Kenya to draft the affidavit professionally.

2. Collect Proof of Source – Gather bank records, sale agreements, or relevant documents.

3. Appear Before a Commissioner for Oaths – Sign and swear the affidavit in person.

4. Submit to the Requesting Party – Present the affidavit to your bank, regulator, or law firm.

This process follows the Oaths and Statutory Declarations Act (Cap 15, Laws of Kenya), which governs how affidavits must be prepared and sworn.

FAQs About Affidavit of Source of Funds in Kenya

1. Is an affidavit of source of funds mandatory?
Yes. Many institutions, especially banks and lawyers, require it when dealing with large or unusual transactions to ensure AML compliance. Be prepared to show evidence for example payslips, bank statements etc.

2. Who can commission the affidavit?
Only a Commissioner for Oaths, Advocate, or Notary Public licensed under the Oaths and Statutory Declarations Act.

3. How much does it cost?
We charge Kshs. 5,000 for consultation and affidavit preparation.

4. Can it be done remotely?
While drafting can be virtual, signing must be done physically before a Commissioner or Notary to maintain legal validity.

Contact us on info@swkadvocates.com or by phone/whatsapp +254726328555