35 SACCOs Risk Sanctions as Regulator Escalates Anti-Money Laundering Crackdown
SACCOs are staring at possible sanctions after failing to register with the Financial Reporting Centre (FRC) as required under new anti-money laundering regulations..
✨ Key Highlights
Thirty-five SACCOs face potential sanctions for failing to register with the Financial Reporting Centre (FRC), a requirement under new anti-money laundering regulations. This crackdown is part of Kenya's efforts to address its "grey listing" by the Financial Action Task Force (FATF), aiming to restore international confidence in its financial system.
- 35 SACCOs have not fully registered with the FRC despite compliance being a condition for annual licensing, impacting an industry with KSh 1 trillion in assets and serving 7.4 million members.
- The Sacco Societies Regulatory Authority (SASRA) is spearheading the enforcement and has rolled out new guidelines for combating money laundering and terrorism financing.
- Kenya was placed on the FATF grey list in 2023 due to deficiencies in its anti-money laundering framework, prompting urgent reforms including amendments to the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).
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Kenya Proposes New Regulations Across Tax, Finance, and Power Sectors - September 2025
The Kenya Revenue Authority (KRA) is proposing new regulations, the Income Tax (Significant Economic Presence) Regulations, 2025, to compel Kenyan banks to withhold taxes for non-compliant foreign technology firms. In the financial sector, thirty-five SACCOs face sanctions for failing to register with the Financial Reporting Centre (FRC) under new anti-money laundering regulations. This crackdown is part of Kenya's effort to address its "grey listing" by the Financial Action Task Force (FATF). Additionally, new customer service standards are set for the power industry through the Draft Energy (Electricity Reliability, Quality of Supply and Service) Regulations, 2025. These regulations aim to enhance accountability and improve customer experience for the electricity sector.
