Kenya is targeting an exit from the Financial Action Task Force (FATF) grey list by April 2027 after addressing 19 of the 21 action items required to strengthen its anti-money laundering and counter-terrorism financing systems.
The National Assembly Committee on Delegated Legislation has scrutinised the Prevention of Terrorism (Implementation of the United Nations Security Council Resolutions on the Suppression of Terrorism) Regulations, 2026, as the country steps up efforts to meet international standards.
The committee, chaired by Ainabkoi MP Samuel Chepkonga, examined safeguards governing the freezing of assets belonging to designated persons and exemptions that allow limited access to the funds.
Appearing before the committee, Financial Reporting Centre (FRC) Director-General Naphtaly Kipchirchir Rono said Kenya had made significant progress in implementing measures required to secure its removal from the grey list.
“Where we are in our efforts to delist from the grey list as a country is we are in a fairly good place. We have now addressed 19 action items out of the 21 action items,” Rono said.
He noted that six action items had been cleared in the preceding two and a half months, expressing optimism that Kenya would meet its target with continued support from Parliament and other stakeholders.
“We are optimistic that with the momentum and with the support from yourselves and the other stakeholders, we should be able to exit the grey list by April next year,” he added.
The committee also examined provisions allowing exemptions from asset freezes imposed under United Nations Security Council resolutions.
FRC officials said the exemptions were narrowly defined and intended to cover essential needs, including medical treatment, basic expenses and humanitarian assistance.
“The exemptions are for medical reasons, basic expenses, and on humanitarian grounds,” Rono said.
FRC Director of External Relations James Manyonge told Members of Parliament that individuals seeking access to frozen funds must submit an application and demonstrate the circumstances justifying the request.
“When one wants to access funds, one has to make an application to the committee and prove the circumstance. It’s not automatic,” Manyonge said.
He explained that funds could only be released after the committee issued an order authorising access.
The safeguards are intended to ensure that exemptions are granted through a controlled process rather than allowing unrestricted access to assets frozen under counter-terrorism measures.
Members also sought clarification on cash withdrawal limits and how commercial banks were implementing the requirements.
FRC officials said recent legislative amendments had raised the threshold to US$15,000, equivalent to approximately Sh1.8 million.
However, they noted that consistent implementation would require further guidance from the Central Bank of Kenya to ensure commercial banks applied the requirements uniformly.
The FRC leadership also informed the committee that complementary regulations on proliferation financing would be presented to Parliament in the coming week.
Committee members called for joint technical workshops and benchmarking exercises to improve cooperation between Parliament and regulatory agencies.
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