The EU\u2019s decision, released Tuesday, places Kenya under increased financial scrutiny, with its financial systems now seen as vulnerable to money laundering and terrorism financing. The Financial Reporting Centre (FRC)<\/strong>, Kenya\u2019s own Financial Intelligence Unit, had already raised red flags over thousands of suspicious financial activities in 2024. <\/p>\n\n\n\n According to the FRC\u2019s latest annual report, suspicious transactions related to money laundering rose 18.73 per cent in 2024, with 7,193 incidents flagged – up from 6,058 the year before. Terrorism financing alerts also jumped by over 30 per cent, from 72 to 94. The total number of suspicious transaction reports surged by nearly 19 per cent, according to the East African publication.<\/p>\n\n\n\n Of particular concern are capital markets and securities operators, whose flagged transactions more than tripled from 26 to 93 – all linked directly to suspected money laundering. Mobile money operators and money remitters reported a dip in terrorism-related alerts, but telcos still recorded a considerable 55.61 per cent increase in suspicious activity, raising concerns over the role of fintech platforms in the illicit money flow.<\/p>\n\n\n\n The timing of this raises eyebrows, given that Kenya\u2019s government recently launched an aggressive crackdown on gambling operators, with new restrictions on advertising<\/a>, tougher compliance checks, and targeted investigations into digital betting transactions, many of which are suspected conduits for illicit finance.<\/p>\n\n\n\n Kenyan banks flagged a 30.55 per cent surge in suspicious transactions related to terrorism financing, according to a report by MSN, reinforcing the urgency of bolstering the country’s anti-money laundering framework.<\/strong><\/p>\n\n\n\n Meanwhile, Uganda which was previously on the same EU grey list<\/strong>, has been delisted after demonstrating meaningful reforms and improvements in its financial crime defences. Senegal and a handful of other nations were also cleared.<\/p>\n\n\n\n Kenya now joins a growing list of African countries under heightened EU watch, including C\u00f4te d’Ivoire, Algeria, Angola and Namibia<\/strong>. The grey-listing means that the nation will face stricter vetting from EU partners.<\/p>\n\n\n\n With Kenya\u2019s online betting industry now under a regulatory microscope, this development may mark a turning point in how the country handles its dual challenges of digital innovation and financial integrity.<\/p>\n\n\nThe timing amid gambling crackdown<\/h2>\n\n\n\n
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