The European Union (EU) has officially added Kenya to its list of high-risk third countries with strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. This development, announced on June 10, follows the Financial Action Task Force’s (FATF) February 2024 decision to grey-list Kenya and Namibia due to similar concerns.
Alongside Kenya, the EU also added Algeria, Angola, Côte d’Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela to the list. These jurisdictions are deemed to pose significant threats to the integrity of the EU’s financial system. The European Commission noted that the decision reflects Kenya’s inclusion in the FATF list of “Jurisdictions under Increased Monitoring” during multiple review cycles between 2024 and 2025.
Despite the grey-listing, the EU acknowledged that Kenya has made high-level political commitments to address the identified deficiencies. Since February 2024, Kenya has initiated several reforms in collaboration with the FATF and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), its FATF-Style Regional Body (FSRB).
The measures include completing a terrorism financing risk assessment, updating the national AML/CFT strategies, and aligning Kenya’s targeted financial sanctions framework with international standards. The country is also expected to enhance risk-based AML/CFT supervision of financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs).
Additionally, Kenya plans to introduce a legal framework for the licensing and supervision of virtual asset service providers. The Anti-Money Laundering and Countering Terrorism Financing Laws (Amendment) Bill, 2025, which addresses these gaps, is currently under parliamentary review.
The EU emphasized that while Kenya has made commendable progress, swift implementation of the FATF action plan is critical to restoring confidence and reducing risks to the global financial system.
Meanwhile, the EU removed eight countries Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates from the high-risk list, citing their substantial progress in addressing AML/CFT concerns.
The Commission has urged all newly listed countries, including Kenya, to complete the implementation of their action plans within agreed timelines.
