Kenya pushes tighter ownership rules to leave FATF grey list by April 2027

Kenya's National Treasury intends to tighten rules requiring companies and trusts to disclose their ultimate beneficial owners, as outlined in the draft 2027 Budget Policy Statement. The move expands existing requirements, which already obligate firms to register owners holding at least 10% of shares or voting rights, and adds similar registers for trusts created under the Trust Administration Act of 2026. Kenya has been under Financial Action Task Force (FATF) increased monitoring since February 2024, with a June 2026 assessment flagging seven areas for improvement, including ownership transparency and money-laundering investigations.

Treasury officials claim that 19 of 21 FATF action-plan items have been addressed, and they project a removal from the grey list by April 2027, though final approval rests with FATF. The country also faces heightened scrutiny of its payments sector, exemplified by recent service limits imposed by Sendwave and Wise. The Treasury argues that clearing FATF concerns is essential for investor confidence, correspondent banking links, and access to global financing.