Kenya has officially been placed on the European Union’s (EU) high-risk list, signaling strategic shortcomings in combating money laundering and terrorism financing.
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EU Names Kenya Among High-Risk Jurisdictions
On Tuesday, June 10, the EU published an updated list of third-country jurisdictions with significant deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks—Kenya was among them.
Treasury CS John Mbadi during a consultative meeting on May 22, 2025. PHOTO/Treasury X
Why It Matters
Maria Luís Albuquerque, the EU’s Commissioner for Financial Services and Savings, stated that financial entities across the EU are now required to apply enhanced due diligence when dealing with Kenyan transactions. The goal is to safeguard the integrity of the EU financial system.
“Identifying and listing high-risk jurisdictions remains a crucial tool to protect the EU’s financial integrity,” Albuquerque noted.
FATF Alignment and Monitoring
The European Commission’s decision was based on extensive technical evaluation, including input from the Financial Action Task Force (FATF), bilateral talks, and on-site visits. The FATF recently identified Kenya under its “Jurisdictions under Increased Monitoring.”
According to the Commission, aligning with FATF standards ensures global cooperation in tackling illicit financial flows.
What’s Next?
This list is updated under Article 9 of the 4th Anti-Money Laundering Directive (4AMLD). The updated regulation will now be scrutinized by the European Parliament and Council, taking effect unless there is an objection within one to two months.
The Kenyan Treasury, led by CS John Mbadi, is yet to respond publicly to the inclusion but is expected to coordinate reforms with international bodies.
What This Means for Kenya
Being on the high-risk list could impact Kenya’s access to international credit and banking systems, prompting stricter scrutiny of its financial institutions.
Kenya now faces increased pressure to implement reforms to improve transparency, enforce anti-money laundering laws, and regain global trust.
Related: How Kenya Plans to Strengthen Its AML Laws
