The Financial Reporting Centre (FRC), Kenya’s financial intelligence unit, has uncovered illicit wealth amounting to $120.91 million (Sh15.65 billion) in the year ending December 2025. This breakthrough was driven by enhanced use of financial intelligence and extensive monitoring of bank transactions.

According to the FRC, suspicious transaction reports (STRs) submitted primarily by banks and other reporting entities such as real estate agents and insurers triggered investigations that identified these substantial illicit funds. These reports include weekly cash transaction reports (CTRs) capturing cash dealings above $15,000 (Sh1.94 million).

Collaborative Efforts Against Economic Crime

The suspicious transactions prompted further probes by several agencies including the Directorate of Criminal Investigations (DCI), Ethics and Anti-Corruption Commission (EACC), Kenya Revenue Authority (KRA), and the Assets Recovery Agency (ARA). The majority of the recovered assets relate to proceeds of corruption, economic crimes, unexplained wealth, and high-value public land.

The FRC noted that restrictions and preservation orders have been placed on properties pending recovery. Real estate agents report that luxury properties in Nairobi’s affluent suburbs often sell for Sh100 million in cash, highlighting the scale of illicit cash flows linked to corruption and economic crimes.

Rising Suspicious Transactions and Sophisticated Evasion Tactics

  • Suspicious transaction reports increased by 18.8% to 9,571 in 2025, with banks accounting for 85.7% of these reports.
  • A 2025 FRC typologies report revealed that about 91% of suspicious flows, amounting to Sh6.38 trillion, passed through banks between 2021 and 2023.
  • Illicit actors increasingly use complex strategies such as shell companies and transaction structuring to evade detection.
  • Illicit financial flows involving Kenya have links to at least 21 countries.

Wide Network of Reporting Entities

The FRC collects reports from banks, insurers, SACCOs, forex bureaus, mobile money operators, lawyers, accountants, casinos, betting firms, real estate agents, and dealers in precious metals and stones. Reporting institutions must file CTRs for cash transactions above $15,000 and cross-border declarations for amounts exceeding $10,000.

Suspicious transaction and activity reports are submitted regardless of transaction value when linked to crime, money laundering, or terrorism financing. The FRC analyses this data to detect patterns indicative of financial crime and enriches it with other sources to produce actionable intelligence.

Impact on Law Enforcement and Recovery

The intelligence generated by the FRC supports investigations by law enforcement agencies. In 2025, the FRC disseminated 260 intelligence reports, with the EACC receiving 72 that led to tracing the Sh15.65 billion illicit wealth. The KRA acted on 70 reports, concluding 33 investigations and recovering Sh307 million in unpaid taxes.

The DCI and ARA also received numerous reports, triggering investigations and asset tracing efforts. Currently, 31 cases are at advanced stages, two are pending forfeiture, and five have been closed.

The FRC continues to expand its network of reporting institutions to strengthen Kenya’s fight against illicit financial flows and economic crime.