The country was placed on the Financial Action Task Force (FATF) grey list in February 2024 following concerns about gaps in its efforts to combat money laundering and terrorism financing.
The listing means Kenya is subject to increased monitoring as it works to address identified weaknesses in its financial systems.
However, the government has made progress in implementing the required reforms. Financial Reporting Centre Director-General Naphtaly Rono told Parliament in October 2026 that Kenya had addressed 19 of the 21 action items identified by the international watchdog.
The remaining requirements include improving investigations and prosecutions involving money laundering, strengthening transparency in company ownership and ensuring that financial intelligence is effectively used to identify suspicious transactions.
Kenya is targeting April 2027 to complete the process and exit the FATF grey list.
The government has also been engaging international partners, including the European Union, as part of broader efforts to strengthen financial regulations and improve cooperation in combating financial crimes.
The reforms are important because being placed on international watchlists can expose Kenyan businesses and financial institutions to additional scrutiny when conducting cross-border transactions.
Banks and international financial institutions may introduce additional checks when dealing with transactions involving countries considered high-risk. This can increase compliance costs and delay some financial dealings.
The European Commission added Kenya to its list of high-risk third countries in 2025, requiring financial institutions covered by EU rules to apply enhanced checks to relevant transactions.
The government has introduced legislative and institutional changes to address the concerns, including amendments to anti-money laundering laws and stronger oversight of financial activities.
SOURCE: https://www.facebook.com/share/p/1CotJySf2G/
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