CVE Research Hub Knowledge Platform · Kenya
Thematic section

Kenya's AML/CFT regulatory framework

From POCAMLA to FATF standards — the laws, institutions, and reforms shaping financial integrity in Kenya.

POCAMLA 2009

Proceeds of Crime and Anti-Money Laundering Act

Kenya's primary AML law — criminalises money laundering, establishes the Financial Reporting Centre (FRC), and sets reporting obligations for financial institutions and designated non-financial businesses.

Prevention of Terrorism Act

Counter-terrorism financing framework

Provides the legal basis for designating terrorists, freezing assets, and prosecuting terrorism financing — closely linked to AML supervision and NPO sector oversight.

AML/CFT Amendment Act 2025

FATF action plan reforms

Signed June 2025 to address FATF grey-list deficiencies — strengthens FRC oversight, enhanced due diligence, NPO sector regulation, and beneficial ownership requirements.

Financial Reporting Centre

Kenya's Financial Intelligence Unit

Receives Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs), disseminates financial intelligence, and issues guidance to reporting institutions nationwide.

Public Benefit Organisations Act

NPO registration & oversight

PBORA provides the framework for registering and regulating non-profit organisations — increasingly central to risk-based NPO oversight under Kenya's AML/CFT reforms.

FATF & ESAAMLG

International standards

Kenya is assessed against FATF's 40 Recommendations through the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) mutual evaluation process.

Kenya & the FATF grey list

Kenya was placed on the FATF grey list in February 2024, signalling strategic deficiencies in its AML/CFT framework. The government has committed to an action plan addressing gaps in NPO oversight, beneficial ownership transparency, suspicious transaction reporting, and terrorism financing investigations.

The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025 represents a major milestone — strengthening FRC powers, enhanced due diligence requirements, and NPO sector regulation under PBORA.