NAIROBI, Kenya, Oct 25 – Panelists at the inaugural Kenya Anti-Financial Crime Summit emphasized that illicit fund flows within Kenya’s financial system led to Kenya’s placement on the Financial Action Task Force (FATF) grey list in February 2024.
The greylisting has raised Kenya’s risk profile, discouraging foreign investors from entering the market, impacting job creation.
Julius Kipngetich, Regional CEO at Jubilee Holdings Limited, stressed the critical need for Foreign Direct Investment (FDI) to fuel economic growth and generate jobs for the approximately 1 million young people entering Kenya’s workforce each year.
“To create enough jobs, FDI inflows need to reach approximately 40% of Kenya’s GDP. However, greylisting deters investors, who may see increased risks and choose alternative destinations, hindering Kenya’s ability to attract the necessary foreign capital,” said Kipngetich.
Kenya’s placement on the grey list followed an FATF evaluation that highlighted deficiencies in the country’s efforts to combat money laundering and related financial crimes.
Flywheel Advisory Founder and Executive Director Grace Mburu stated that bringing together industry experts, regulators, and global leaders to discuss the impact of Kenya’s greylisting offers a valuable opportunity for financial sector players to address both legacy and emerging challenges.
“Financial crime is evolving, and we need to adopt strategies to counter money laundering, terrorism financing, and proliferation financing if we are to remove Kenya from the FATF grey list. The summit will provide a platform for stakeholders to collaborate on strategies to address these issues,” Mburu added.
The Kenya Anti-Financial Crime Summit, organized by Flywheel Advisory in partnership with the Financial Reporting Centre (FRC), is themed “Unified Strategies: Tackling Greylisting.”
