EU Adds Kenya to List of High-Risk Countries for Money Laundering, Removes Uganda

Insights At a Glance:

• Kenya blacklisted by EU for weak anti-money laundering systems—while Uganda is removed from the list, signaling a role reversal in East Africa’s financial credibility.
• Kenya’s once-celebrated digital leadership is crumbling under Ruto’s regime, with recent blunders like the metered internet bill, digital rights violations, and tech stagnation.
• The EU blacklist is a red flag for global investors and a blow to Kenya’s FinTech sector—once the pride of the continent, now grappling with a crisis of credibility.

If you had told me that Uganda would leapfrog Kenya in financial integrity rankings, I would have laughed. Loudly. And yet, here we are in 2025—staring blankly at the news that the European Union has added Kenya to its list of high-risk countries for money laundering and financial crime, while removing Uganda from that same list. You heard that right. Uganda is out. Kenya is in.

The European Commission’s announcement on June 10, 2025, was clinical in its brutality. Kenya was added to the list of high-risk jurisdictions alongside Algeria, Angola, Côte d’Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela. Meanwhile, Uganda joined the likes of Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and the United Arab Emirates in being delisted.

For those who understand the implications, this is catastrophic. EU entities now must apply “enhanced vigilance” when conducting transactions involving Kenya. In practical terms, this means:

• Increased compliance costs for Kenyan fintech companies operating in European markets
• Delayed transaction processing for international transfers
• Reduced investor confidence in Kenya’s regulatory environment
• Potential exclusion from certain international financial partnerships

But here’s what really gets me: this didn’t happen overnight. The Commission’s decision was based on “a thorough technical assessment, based on specific criteria and a well-defined methodology, incorporating information collected through the FATF, bilateral dialogues and on-site visits to the jurisdictions in question.”

Translation: They saw this coming from miles away, and apparently, so did everyone else—except you know who.

As someone who has watched Kenya dominate tech innovation in Africa—ushering in mobile money before the rest of the world even knew what “FinTech” meant—this feels like an intercontinental slap to the face. Especially when you consider that our once-laggard neighbor, Uganda, is now considered more financially trustworthy on the global stage.

So, how did we get here?

Kenya Under Ruto’s Regime

Let’s be real: Kenya’s descent didn’t start with this EU blacklist. It’s been a series of unfortunate (and often baffling) policy choices since President Ruto took office. The so-called hustler government promised empowerment from the bottom-up but has consistently delivered top-down chaos. The financial sector—especially the digital economy—has taken a series of gut punches in the past two years.

For instance, Kenya has been flagged for a disturbing regression in internet freedom in the Londa 2024 Digital Rights and Inclusion Report. The report reveals that Kenya experienced two significant government-imposed internet disruptions in 2024: nationwide internet throttling during the anti-tax protests on June 25-26, reducing speeds to just 42% of normal connectivity, and the blocking of Telegram access during KCSE exams on November 8.

Think about this for a second. We’re the country that gave the world M-Pesa, that built the Silicon Savannah, that pioneered mobile money across Africa. Now we’re throttling our own internet and blocking communication apps like some authoritarian regime. Kenya received a score of 28 out of 60 in the Londa Score Index, placing it in the “mildly compliant” tier, with the report noting that “Kenya has retrogressed regarding promotion of internet access.”

The telecommunications sector isn’t faring any better. The recent drama surrounding the Communications Authority of Kenya and Safaricom regarding the unfortunate death of Albert Ojwang and the proposed metered internet billing system shows a government that’s completely out of touch with digital realities. When your own telecom regulator becomes a source of controversy rather than confidence, you know you’re in trouble.

Each of these incidents, taken alone, might be survivable. Together, they paint the picture of a tech nation in freefall—an economy eating its own infrastructure in an attempt to survive.

Sure, high inflation , extra-judicial killings, and rising unemployment spurred widespread discontent, but here’s what the mainstream media isn’t telling you: this financial crisis is directly impacting our tech sector’s ability to compete globally. When your government is more focused on squeezing taxes out of already struggling citizens than building the regulatory infrastructure needed for financial innovation, you get exactly what we’re seeing today—international isolation.

While Kenya was busy with political drama, Uganda was quietly building. They’ve been working systematically to improve their anti-money laundering frameworks, investing in regulatory capacity, and most importantly, creating an environment where innovation can flourish without constant government interference. President Museveni’s government has also committed to fighting money laundering in the country, something we are yet to see from Kenya’s President Ruto.

Uganda’s removal from the EU high-risk list isn’t an accident—it’s the result of deliberate policy choices and consistent implementation. They’ve been building while we’ve been burning bridges.

The EU Blacklist is A Blow to Investment and FinTech

Being on the EU’s blacklist isn’t just about optics. It’s a direct threat to foreign investment. Banks, payment processors, and financial institutions in the EU are now required to apply enhanced due diligence to any transaction involving Kenya. For our blossoming FinTech sector, this is a death knell.

Startups will suffer. Remittances will slow down. Partnerships with European financial institutions? Tainted. And worst of all, this stokes fears among other global watchdogs and investors, who often take cues from EU actions.

Can We Dig Ourselves Out?

Absolutely. But only if there’s political will and a citizenry ready to demand accountability. Kenya needs:

• Independent oversight of financial systems and the Central Bank,
• A reset on digital policy that supports, not stifles, innovation,
• A firewall between politics and our tech sector.

This isn’t just about reputation—it’s about jobs, livelihoods, and Kenya’s rightful place at the forefront of the African digital economy.

As someone who has proudly championed Kenyan innovation—from the M-PESA days to our booming startup ecosystem—I’m livid. We should be leading the continent in setting the financial rules of the future, not being penalized for failing to meet the minimum standards of the present. Ruto’s administration promised to transform the economy. What we’ve seen instead is the systematic dismantling of everything that made Kenya the tech capital of Africa.

Maybe it’s time we stopped blaming external forces and started asking ourselves some hard questions. Because Uganda is no longer looking up at us. They’re speeding past, waving.