Accountants have warned that Kenya’s grey listing could expose the country to loss foreign aid and investments.

Kenya was officially placed on the Financial Action Task Force’s (FATF) grey list on February 24, a move that, according to the Institute of Certified Public Accountants of Kenya (ICPAK), could have significant repercussions on the country’s economic and social progress.

The listing indicates that Kenya is under increased monitoring by FATF for deficiencies in combating money laundering (AML) and the financing of terrorism (CFT).

“The country may suffer consequences of grey listing, including loss of foreign aid and investments; this may further lead to increased compliance costs due to stricter requirements to adhere to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations for financial institutions, businesses, and individuals,” says ICPAK in its 2025-2029 strategic plan.

In an effort to get the country off the grey list, the National Treasury has announced that it will ride on the support of ICPAK to support the implementation of its expanded mandates, particularly in strengthening the country’s financial regulatory framework.

Agriculture Principal Secretary Ephantus Kimotho, who was speaking on behalf of the Treasury, said that by working together, the government and ICPAK could develop policies that protect the public interest and promote a conducive environment for business operations.

“The National Treasury is proud to have been part of strengthening ICPAK’s regulatory frameworks through the enactment of Accountants Regulations 2022 and the current initiatives to amend the Accountants Act,” said Kimotho.

In its changing mandate, ICPAK will contribute to enhancing compliance and transparency in financial reporting and auditing through providing continuous professional development and training to its members on AML and CFT measures.

This will be through a partnership with government bodies, financial institutions, and regulators to strengthen the financial system, implementing robust monitoring and enforcement mechanisms to ensure compliance with the money laundering laws.

In the joint efforts, the accounting body will be responsible for taking disciplinary actions against members who fail to comply with the required standards. ICPAK CEO Grace Kamau said the institution’s members will be trained and resourced to promote transparency and financial stability.

“Our goal is to enhance ethical standards in financial reporting to build investor confidence and drive economic development,” Kamau stated.

ICPAK chair Philip Kakai said that the institution would broaden its regulatory frameworks to monitor compliance among members and ensure adherence to ethical practices.