The United Kingdom has pledged its support to Kenya in addressing the pervasive issue of ‘wash wash’ cartels.
This collaboration is part of a broader effort to assist Kenya in its goal of being removed from the Financial Action Task Force (FATF) international financial grey list. Earlier this year, the FATF, an authoritative global body focused on anti-money laundering (AML) and counter-terrorism financing, identified deficiencies in Kenya’s financial crime prevention frameworks, culminating in the country’s categorization on the grey list. This status alerts the international community to the strategic AML/CFT/CPF (Anti-Money Laundering, Countering the Financing of Terrorism, and Countering Proliferation Financing) vulnerabilities within the nation, pressing for immediate corrective actions.
The British High Commission in Kenya has publicly affirmed its commitment on social media, outlining plans to deliver technical assistance and partner with Kenyan authorities. This partnership emphasizes the crucial role that effective measures against money laundering and terrorist financing play in strengthening democracy and enhancing economic growth. Between 2017 and 2021, Kenya witnessed alarming trends in money laundering, with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) reporting that the nation experienced Sh 72.2 billion in unaccounted cash flows during this timeframe.
These figures raised significant concerns regarding the origin of these funds and underscored the critical need for stringent financial oversight. On November 29, the UK reiterated its commitment to supporting Kenya through technical expertise and the implementation of FATF standards. This pledge follows a formal request for international assistance from the Kenyan government, which seeks collaboration from entities such as the European Union, the United Kingdom, and the United States. Former Treasury Cabinet Secretary Njuguna Ndung’u has previously underlined the importance of this international cooperation, noting that it is vital for enhancing the regulatory framework and expediting Kenya’s exit from the grey list.
Additionally, the United Nations Office on Drugs and Crime East Africa launched a UK-funded initiative on November 28, aimed at fortifying Kenya’s AML/CFT framework. This project seeks to address specific deficiencies pinpointed by the FATF, such as the lack of prosecutions for money laundering and terrorism financing, inadequate regulation of cryptocurrencies and nonprofit organizations, and the absence of a comprehensive risk-based approach. Kenya’s inclusion on the grey list aligns it with various other African nations, including Tanzania, South Sudan, Nigeria, South Africa, Mali, Mozambique, Senegal, Burkina Faso, and Cameroon.
