A Regulatory Wake-Up Call for Kenya’s Property Market
Kenya’s property sector is entering a new era of accountability. As of late 2025, the Financial Reporting Centre (FRC) has directed all real estate agencies and related property managers to register on its goAML platform by 14 November 2025.
This order, issued under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), marks a decisive step in tightening oversight within the real estate industry — a sector long viewed as a potential channel for illicit financial flows. The directive underscores the government’s intent to bring real estate transactions under the same transparency standards already applied to banks, insurance companies, and other reporting institutions.
For developers, landlords, and brokers across Nairobi and Kenya at large, compliance is no longer optional — it’s a legal requirement.
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Understanding the FRC Directive
Under the POCAMLA framework, real estate agencies are officially designated as reporting institutions. That means they must:
- Register via the goAML portal (an online system managed by the FRC).
- Implement internal compliance programs to detect suspicious transactions.
- Identify and verify clients before engaging in sales, leasing, or management activities.
- Maintain AML records and report suspicious or high-value transactions to the FRC.
🗓 Deadline: All active agencies must complete registration on or before 14 November 2025.
Earlier notices had referenced February 2025, but that date applied to an initial phase of reporting institution onboarding. The November directive is the current and final compliance deadline.Read Also: Kenya Property Market 2025: How Local Resilience Is Outpacing Global Real Estate Giants
Why This Matters: From Policy to Practice
The implications extend far beyond paperwork. By requiring registration, the FRC is establishing a traceable ecosystem for real estate transactions — making it harder to launder money through property deals or conceal ownership trails.
For agencies, this means greater scrutiny but also greater credibility. For investors, it signals a safer market where due diligence and transparency protect legitimate players.
According to Business Daily (October 2025), non-compliant firms risk fines of up to KSh 25 million for institutions and KSh 5 million for individuals. This places enormous pressure on smaller brokerages to align their processes before the deadline.
Compliance Steps for Real Estate Firms
To comply efficiently, agencies should:
- Create an account on the FRC’s goAML portal (www.frc.go.ke).
- Appoint a compliance officer responsible for AML record-keeping and reporting.
- Train all staff on client verification, documentation, and reporting red flags.
- Adopt digital systems that can flag unusual cash transactions automatically.
- Regularly file Suspicious Transaction Reports (STRs) where applicable.
💡 Tip: The FRC offers free virtual training sessions and downloadable compliance manuals to guide reporting institutions through registration and filing procedures.
The Bigger Picture: Real Estate Regulation in Kenya 2025
This directive is part of a broader regulatory tightening trend reshaping Kenya’s real estate landscape. In 2025, we’ve seen:
| Regulation | Implementing Body | Core Focus | Timeline |
|---|---|---|---|
| FRC AML Registration | Financial Reporting Centre | Anti-money laundering compliance for property agents | Deadline: 14 Nov 2025 |
| Building Code Update | State Department for Housing | Construction safety and green standards | 2025 Review Phase |
| Affordable Housing Oversight | National Housing Corporation (NHC) | Developer vetting and project financing compliance | Ongoing |
| Tax Digitalization Drive | Kenya Revenue Authority (KRA) | Tracking property transactions digitally | Q3 2025 |
Implications for Investors and Landlords
For local and diaspora investors, the new real estate regulation in Kenya 2025 brings both confidence and caution. Compliance ensures cleaner title transfers, fewer fraudulent listings, and increased transparency in agent dealings.
Landlords who manage multiple tenants or outsource property management must confirm that their agents are registered and compliant, as liability can extend to them under POCAMLA if illicit transactions pass through their property accounts.
Ultimately, compliance equals protection — both reputational and financial.
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Building Trust Through Transparency
The FRC directive may feel burdensome for smaller players, but it signals Kenya’s maturity as an investment market. Just as banks adapted to Know-Your-Customer (KYC) requirements years ago, the real estate sector must now adapt to Know-Your-Client (KYC) for property.
By November 2025, the most competitive agencies in Kenya won’t be the ones cutting corners — they’ll be the ones who build trust through transparency.
