Treasury Cabinet Secretary Njuguna Ndung’u has affirmed Kenya’s intent to enlist the assistance of international financial institutions, notably the World Bank and the International Monetary Fund (IMF), to navigate its exit from the Financial Action Task Force’s (FATF) grey list.
While speaking to the National Assembly Committee on Public Debt and Privatisation,Ndung’u on Monday, he emphasized Kenya’s pursuit of validation from prominent entities including the United States, the European Union, and the United Kingdom.
Ndung’u disclosed that multilateral donors had committed to providing substantial support to Kenya in aligning with FATF regulations aimed at combating money laundering. He underscored forthcoming technical assistance from the IMF, World Bank, EU, US, and UK, while outlining plans for collaborative efforts across various institutions.
Furthermore, Ndung’u highlighted the pivotal roles of the UK, US, IMF, and World Bank in assisting Kenya with debt liability management, mitigating risks such as grey-listing, and averting debt distress situations.
Grey-listing entails heightened scrutiny by FATF due to identified deficiencies in a country’s anti-money laundering measures. However, efforts made by countries to address money laundering, terrorism financing, and proliferation of weapons of mass destruction are acknowledged by FATF.
Addressing concerns over potential credit rating implications stemming from the grey-listing, Ndung’u refuted claims that Kenya’s creditworthiness would deteriorate, attributing the scrutiny to institutional matters rather than creditworthiness.
Reflecting on past challenges, Ndung’u recalled efforts undertaken in 2009/2010 to avert Kenya’s potential blacklisting by FATF, citing collaborative legislative amendments as instrumental in addressing regulatory concerns.
Following the official placement of Kenya on the FATF grey list on February 23, Ndung’u highlighted proactive measures taken by the Kenya Kwanza government to prevent grey or black-listing since assuming office.
Furthe, Ndung’u reiterated Kenya’s commitment to implementing necessary reforms and leveraging international support to address FATF concerns and safeguard the country’s financial integrity.
