Kenya targets April 2027 exit from anti-money laundering grey list

Kenya aims to exit the FATF grey list in April 2027 after addressing 19 out of the 21 required action items to improve its anti-money laundering and counter-terrorism financing systems. Financial Reporting Centre Director-General Naphtaly Kipchirchir Rono stated that progress has been made, with six action items resolved in the last two and a half months.

Rono expressed optimism that Kenya will meet the deadline, citing the momentum and support from stakeholders. The committee examining the Prevention of Terrorism Regulations 2026 raised concerns about exemptions that allow frozen assets to be accessed for specific needs, questioning the potential loopholes. FRC officials explained that exemptions are limited to essential expenses, such as medical treatment and humanitarian needs, and require applicants to justify the necessity of access.

The committee also sought clarification on cash withdrawal limits and bank compliance. FRC officials informed MPs that the threshold for cash withdrawals has been raised to US$15,000, but consistent implementation depends on guidance from the Central Bank of Kenya. Additionally, complementary regulations on proliferation financing will be presented to Parliament soon.

Members of the committee called for joint technical workshops and benchmarking exercises to strengthen cooperation in implementing reforms. Kenya's exit from the grey list depends on addressing outstanding action items and demonstrating effective implementation of the measures adopted.