Kenya Country Summary

FATF Status

Kenya is on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Kenya was undertaken in 2024. According to that Evaluation, Kenya was deemed Compliant for 19 and Largely Compliant for 9 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Kenya continues to grapple with significant challenges related to crime and corruption, which hinder its development and investment climate. Despite some efforts to combat these issues, including recent high-profile arrests of public officials and the establishment of various anti-corruption laws, the effectiveness of these measures is undermined by persistent corruption and weak enforcement mechanisms, particularly within the judicial and law enforcement systems.

Kenya presents a favorable investment climate, appealing to international firms for local and regional operations, bolstered by the Ruto administration's commitment to attracting foreign direct investment (FDI) through supportive policies. The government's Bottom-Up Economic Transformation Agenda prioritizes sectors such as agriculture, micro and small enterprises, and digital infrastructure, while recent tax reforms aim to enhance the business environment by reducing capital gains tax and VAT exemptions. Despite these positive developments, challenges remain, including bureaucratic hurdles, a relatively high corruption perception, and political instability, which have contributed to a slowdown in economic growth, necessitating ongoing reforms to sustain investor confidence and economic expansion.