A recent report by the U.S. Department of State Bureau for International Narcotics and Law Enforcement Affairs, released in March 2025, has identified lawyers, real estate agents, and notaries as key enablers of money laundering in Kenya.
Despite the government’s commitment to fighting financial crimes, illicit financial activities remain a significant challenge.
Professionals facilitating money laundering
According to the report, designated non-financial businesses and professions (DNFBPs) have become major loopholes in Kenya’s anti-money laundering efforts. Lawyers, estate agents, and notaries play critical roles in these schemes.
- Some lawyers act as intermediaries in property transactions, knowingly or unknowingly helping to disguise illegal funds.
- Others create shell companies that exist only on paper to hide the origins of illicit money.
- Trust accounts managed by professionals make it difficult for authorities to trace the true source of funds.
These practices obstruct Kenya’s financial crime prevention efforts, even as the country pledged in 2024 to strengthen its anti-money laundering systems.
Legal loopholes hindering oversight
In February 2024, Kenya committed to an action plan with the Financial Action Task Force (FATF) to tighten anti-money laundering regulations. However, a court injunction has blocked the government from requiring lawyers to report suspicious transactions. As a result, tracking financial crimes has become more difficult.
Informal remittance systems fueling illicit transactions
The report also highlights how informal money transfer services contribute to illicit financial flows. Foreign nationals, particularly refugees and ethnic Somali residents, often use unregulated money transfer systems.
Criminals exploit these services to move funds swiftly and anonymously, making detection difficult. Additionally, Kenya’s proximity to Somalia has increased financial activity linked to unregulated Somali sectors such as the khat and charcoal trades.
Kenya’s efforts to combat money laundering
Despite these challenges, Kenya continues working to prevent financial crimes. The report acknowledges the country’s collaboration with international agencies to strengthen enforcement measures.
Partnerships between Kenya and the United States have enhanced financial crime investigations. By adhering to global anti-money laundering laws, both nations aim to improve regulatory oversight and reduce illicit transactions.
