Kenya seeks EU support to exit financial crime watchlists

Kenya has addressed 13 of 21 financial crime deficiencies and is seeking European Union (EU) support to complete reforms and secure removal from two watchlists linked to its anti-money laundering systems.

President William Ruto said Kenya needed continued technical cooperation from the EU to address the remaining gaps and secure removal from the Financial Action Task Force (FATF) grey list and the EU high-risk list.

In remarks delivered during a meeting with heads of EU delegations to African countries at State House, Nairobi, on Thursday, November 12, Ruto said the country had made progress in strengthening its anti-money laundering and counter-terrorism financing frameworks.

He noted that Kenya had addressed 13 of the 21 strategic deficiencies identified under the FATF action plan but still needed support to complete the remaining reforms.

Kenya was placed on the FATF grey list in February 2024 after committing to work with the global financial crime watchdog and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) to address weaknesses in its systems.

The grey list, formally known as the list of jurisdictions under increased monitoring, identifies countries working with FATF to address strategic deficiencies in their efforts to combat money laundering, terrorist financing and proliferation financing. Kenya remains on the list in FATF's October 30, 2026 update.

FATF's latest assessment identifies two areas where Kenya needs further action: addressing breaches of transparency requirements for companies and other legal arrangements, and increasing money laundering investigations and prosecutions in line with the country's risks.

The EU also added Kenya to its list of high-risk third countries, effective August 5, 2025.

The designation requires banks and other regulated financial institutions in the bloc to apply increased checks and controls to relevant business relationships and transactions involving listed countries.

Ruto's appeal comes as Kenya and the EU mark 50 years of diplomatic relations, with the President calling for a comprehensive strategic partnership covering trade, investment, governance, climate action, digital transformation and security.

He described the EU as Kenya's largest export market, accounting for 21 per cent of the country's global exports, including tea, coffee, horticultural products and cut flowers.

The President called for stronger European investment in manufacturing, infrastructure, agriculture, energy and healthcare, saying the partnership should support local production, technology transfer and job creation.

He also called for reforms to the international financial system, arguing that high borrowing costs and debt burdens were limiting Africa's ability to finance development.

He urged the EU to support fairer access to affordable development financing and reform of the United Nations (UN) Security Council, where he said Africa remained under-represented.

On regional security, Ruto welcomed the EU's additional €75 million (about Sh10.93 billion) approved in April 2026 for African Union (AU)-led missions in Somalia.

The funding brought the bloc's total support to nearly €2.8 billion (about Sh408.16 billion) since 2007.

He said the African Union Support and Stabilisation Mission in Somalia (AUSSOM) continued to face financial and operational constraints, requiring sustained support for aviation, logistics, troop sustenance, medical services and equipment.

Ruto also welcomed a €20 million (about Sh2.92 billion) EU commitment through the European Peace Facility (EPF) to strengthen the operational capabilities of the Kenya Defence Forces (KDF), with delivery expected by the end of 2026.

He called for deeper cooperation in maritime security, intelligence-sharing and counterterrorism across the Red Sea and the Horn of Africa.

On the August 2027 General Election, Ruto said Kenya welcomed consultations on an EU Election Observation Mission (EOM), provided the process complied with the country's laws and procedures.