In 2014, Braverman, Kazhdan, Patnaik and Bardy-Panse, Gaussent and Rousseau associated Iwahori-Hecke algebras to Kac-Moody groups over non-Archimedean local fields. In a previous paper, we defined and studied their principal series representations. In 1982, Kato provided an irreducibility criterion for these representations, in the reductive case. We had obtained partially this criterion in the Kac-Moody case. In this paper, we prove this criterion in the Kac-Moody case.