Treasury targets hidden company owners in push to exit FATF grey list by April 2027

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The National Treasury says it will push harder to unmask the people who secretly own or control Kenyan companies, as the country tries to get off the Financial Action Task Force (FATF) grey list by April 2027.

The commitment is in the draft 2027 Budget Policy Statement, the same document that sets out the KSh5.4trn spending plan for 2027/28. Treasury says better beneficial ownership transparency will help authorities identify the individuals behind companies and trace suspicious money.

What companies already have to file

Kenyan companies must already declare anyone who ultimately holds more than 10% of the firm through the Business Registration Service (BRS). The filing includes the owner’s name, KRA PIN, national ID or passport copy, postal and residential addresses, occupation, phone number and the date the person became a beneficial owner. Compliance has been patchy, which is one reason Kenya is still under extra monitoring.

For anyone setting up a business, the declaration is part of registering a limited company on BRS and sits on the list of legal requirements for starting a business in Kenya. Firms that supply the government already face the same disclosure rules, which are meant to expose officials and politically exposed people who quietly profit from public contracts.

“The National Treasury chairs the National Taskforce on AML/CFT/CPF and will continue to lead a Whole-of-Government effort to complete the remaining items in the FATF Action Plan,” the draft statement says.

Trusts are next

The push also reaches trusts. The Trust Administration Act, 2026, enacted in September, gives existing trusts 24 months to file registers of their beneficial owners. The Financial Reporting Centre (FRC), banks and other reporting institutions will be able to see that information.

Treasury also plans risk-based regulation of non-profit organisations, closer supervision of financial institutions, more money laundering prosecutions and a targeted financial sanctions framework that matches FATF standards. These build on the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025 and the Virtual Asset Service Providers Act, 2025, which brought crypto firms under licensing. Regulators have since gone after unlicensed schemes, including the CMA probe into Global Investment Group and QVSE.

19 of 21 items done

FATF put Kenya under increased monitoring in February 2024 and kept it there at its June 2026 review. FRC Director-General Naphtaly Rono told the National Assembly Committee on Delegated Legislation on October 13 that Kenya has now dealt with 19 of the 21 items in its action plan, six of them in the previous two and a half months.

“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,” Rono told MPs.

Officials at the same session said recent amendments raised the cash transaction threshold to $15,000 (about KSh1.9m), and that banks will need Central Bank of Kenya guidance to apply it the same way.

Real estate and law firms carry the most risk

A 2025 FRC risk assessment found that 282 of 442 entities profiled across four sectors were medium or high risk. Real estate was the most exposed, with 153 agencies in those categories against 40 rated low risk. Law firms followed, with 74 medium-to-high risk and 12 low risk.

Treasury says getting off the list matters for investor confidence, correspondent banking relationships and the cost of external borrowing. It will keep reporting progress to FATF and the Eastern and Southern Africa Anti-Money Laundering Group until the action plan is complete.