National Treasury Principal Secretary Chris Kiptoo has urged Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) implementing agencies to fast-track reforms under the International Cooperation Review Group (ICRG) Action Plan, warning that Kenya must demonstrate effectiveness—not just legal compliance—to secure its exit from the Financial Action Task Force (FATF) Grey List by June.
Speaking in Nairobi during a high-level meeting bringing together principals of AML/CFT implementing agencies, Kiptoo said that although Kenya has made commendable progress since its placement on the Grey List in June 2024, the country must now shift focus from “merely demonstrating progress to achieving significant progress.”
“Out of the 19 action items in the action plan, we have fully addressed 10. This means substantial work still lies ahead before June this year,” he said, noting that timelines for eight of the remaining action points have already lapsed.
He added that the final reporting cycle under the International Cooperation Review Group (ICRG) process is scheduled for April, significantly narrowing the implementation window.
Kiptoo emphasized that legislative reforms alone will not be sufficient. “Technical compliance alone is insufficient. A significant portion of the action plan requires us to demonstrate effectiveness,” he said. “We must show that our laws are not only in place, but are operational, enforced and producing tangible results.”
The PS revealed that the government has provided AML/CFT implementing agencies with additional financial resources to support implementation of their action plans.
However, he challenged agencies to flag any remaining legal, institutional, operational or coordination bottlenecks slowing progress.
On emerging risks, Kiptoo cited the enactment of the Virtual Asset Service Providers Act, 2025, which places digital asset platforms under strict licensing, compliance and reporting obligations to curb illicit financial flows. Draft regulations are also being finalized for public participation.
He acknowledged that key challenges remain, including the delayed enactment of the tax bill and amendments to terrorism financing regulations.
More critically, he said, Kenya must demonstrate successful investigation and prosecution of complex and high-profile money laundering cases.
“Kenya continuing to remain on the Grey List is not an option,” Kiptoo warned. He said the listing increases the cost of doing business, subjects international transactions to enhanced scrutiny and undermines investor confidence.
Exiting the Grey List, he noted, would restore international financial confidence, strengthen the economy, and attract greater foreign direct investment.
He directed agencies to institutionalize AML/CFT budgeting within their regular annual planning cycles to ensure sustainable compliance beyond the current action plan.
