October 28, 2024
Kenya’s FATF Greylisting: Impact on Growth, Investment, and Jobs
Julius Kipngetich, Regional CEO of Jubilee Holdings, noted that Kenya’s FATF greylisting has heightened the country's risk profile, deterring vital foreign direct investment (FDI) essential for economic growth and job creation. With FDI needing to contribute around 40% of GDP to support Kenya’s expanding workforce, the greylisting threatens to reduce investor interest, potentially slowing job growth and economic advancement.
Kenya’s recent greylisting by the Financial Action Task Force (FATF) due to illicit financial flows presents significant obstacles to economic growth and job creation in the country, as highlighted by experts at the Kenya Anti-Financial Crime Summit.
Julius Kipngetich, Regional CEO of Jubilee Holdings, pointed out that Kenya’s greylisting by FATF has raised the country’s risk profile, deterring critical foreign direct investment (FDI) needed to drive economic development and create jobs. To sustain the growth required by Kenya’s increasing workforce, FDI inflows must account for around 40% of GDP. However, the greylisting is now limiting Kenya’s appeal to foreign investors, potentially slowing job market expansion and economic progress.
Speaking on effective anti-money laundering solutions, Grace Mburu of Flywheel Advisory stressed the importance of anti-money laundering (AML) strategies that address both legacy and emerging financial crimes. This approach will be crucial for Kenya as it works to strengthen its financial regulations and improve its FATF standing.
The Kenya Anti-Financial Crime Summit, organized in partnership with the Financial Reporting Centre (FRC), created an invaluable platform for dialogue on greylisting challenges and the collaborative efforts needed to restore investor confidence and enhance Kenya’s global economic position.
