NAIROBI, Kenya — Kenya is accelerating reforms aimed at strengthening its anti-money laundering and counter-terrorism financing regime as it seeks to exit the global “grey list” and restore international confidence in its financial system.
Treasury Principal Secretary Dr Chris Kiptoo said he chaired a high-level meeting in Nairobi on behalf of Cabinet Secretary John Mbadi to review progress under the International Cooperation Review Group (ICRG) process and chart the next steps towards removal from the grey list.
Kenya was placed on the grey list by the Financial Action Task Force (FATF), which monitors countries with strategic deficiencies in their Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) frameworks.
According to Dr. Kiptoo, the meeting brought together principals of AML/CFT implementing agencies to assess reforms already undertaken and identify outstanding measures required for compliance.
Among the key milestones cited were the enactment of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025, and the Virtual Asset Service Providers (VASPs) Act, 2025, both aimed at tightening oversight of financial transactions and emerging digital asset platforms.
The Treasury also reported strengthened institutional coordination, enhanced risk-based customer due diligence measures, improved suspicious transaction reporting systems, and closer inter-agency collaboration across critical sectors.
“We are taking decisive actions to complete the remaining reforms and secure Kenya’s exit from the Financial Action Task Force Grey List,” Dr. Kiptoo said.
Placement on the FATF grey list can affect investor confidence, increase the cost of cross-border transactions and subject a country to enhanced monitoring. Authorities say the ongoing reforms are designed not only to meet international standards but also to safeguard the integrity and stability of Kenya’s financial system.
Kenya was placed on the Financial Action Task Force (FATF) grey list, a designation for jurisdictions under increased monitoring due to strategic deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks, following a plenary session in February 2024.
FATF identified several key weaknesses in Kenya’s system, including inadequate prosecution and investigation of money laundering and terrorist financing offences, insufficient risk-based supervision of vulnerable sectors, and gaps in regulation of non-profit organisations and beneficial ownership disclosure.
The grey-listing not only signalled shortcomings in meeting global AML/CFT standards but also posed economic and reputational risks.
It exposed Kenya to heightened scrutiny by international banks and investors, potentially increasing compliance costs and slowing financial flows, while neighbouring African peers such as South Africa and Nigeria exited the grey list after strengthening their systems.
