Uganda has surged ahead of Kenya in the Financial Action Task Force (FATF) ranking following its removal from the grey list, underscoring Kampala’s efforts to address anti-money laundering and counterterrorism financing.

Regrettably, Kenya- EAC’s economic powerhouse, has been added to the list due to inadequate measures against money laundering and terrorism financing.

Uganda’s commitment to stringent financial practices and adherence to global standards has solidified its position as a regional leader.

A FATF report from the previous year identified Kenya’s primary risk factors, stemming from the influx of funds associated with terrorism financing, both domestically and internationally. The utilisation of cryptocurrencies further introduces supplementary risks to Kenya’s financial landscape.

The region surrounding Kenya hosts various militant groups, notably the al Shabaab group in neighbouring Somalia, affiliated with al Qaeda and responsible for multiple past attacks in Kenya.

“At this Plenary, the FATF added Kenya and Namibia to the list of jurisdictions subject to increased monitoring, the FATF announced on Friday.”

Kenya downplayed the impact of being added to the grey list, stressing minimal effects on the country’s financial stability. However, Kenya affirmed its full commitment to implementing the FATF’s action plan.

However, pundits argue that putting a country on the ‘grey list’ by the international crime watchdog could have negative impacts on the country’s foreign direct investment.

During the heightened scrutiny by the FATF, Uganda initiated crucial Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) reforms. These initiatives were designed to fortify the country’s frameworks in dealing with both vices.