7-Year Record Retention for Kenya Property Professionals: What to Keep and Why

Under POCAMLA 2025 and the LSK AML/CFT/CPF Guidelines 2025, Kenya property professionals must retain specific records for a minimum of 7 years from the date of the transaction or the end of the client relationship, whichever is later.

This is not just a compliance exercise. In the event of an FRC examination, a legal challenge, or a professional negligence claim, these records are your primary evidence.

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Who Must Retain 7-Year Records

All DNFBP reporting entities engaged in property transactions:

Advocates and law firms handling conveyancing. Real estate agents conducting property transactions. Property developers and managers who deal with client funds.

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What Must Be Retained

Client Identification and CDD Records

For every client in a property transaction:

Certified copy of national ID or passport. Proof of address. Source of funds documentation. For companies: certified copy of incorporation certificate, beneficial ownership information. Risk assessment (low/medium/high risk rating with basis). AML screening results (PEP check, sanctions check).

Transaction Records

For every property transaction:

Sale agreement or contract. All payment records (bank transfers, M-Pesa records, receipts). Stamp duty payment and assessment. Property verification records (official search, Litmus CVP or equivalent, court process search, gazette search). Correspondence with counterparties and advisers. Any AML flags identified and how they were addressed.

Compliance Records

Any suspicious transaction reports (STRs) filed. Declined transaction records (where you refused to act due to AML concerns). Training records for staff.

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How to Organise Records

Physical files: Each client transaction should have a single consolidated file. Label clearly with client name, transaction date, and a unique matter reference.

Digital records: If records are stored digitally, ensure:

They are stored in a format that can be accessed and produced quickly. They include Section 106B certificates for electronic records (required for court admissibility). They are backed up and protected from deletion. Access logs are maintained (who accessed which records).

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What the FRC Can Ask For During an Examination

During an FRC DNFBP examination, examiners can request:

Any client file from the past 7 years. Your written AML/CFT compliance programme. Training records. STR filing records. Your risk assessment methodology.

The standard expected is that you can produce any required file within a reasonable timeframe (typically 24-48 hours for an on-site examination).

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The Professional Negligence Dimension

Beyond FRC examinations, these records are also your defence in a professional negligence claim.

If a client suffers loss and claims you failed to conduct adequate due diligence, your 7-year records demonstrate what you did. A matter file showing:

Client identity was verified. Source of funds was confirmed. Root-of-title was checked (Litmus CVP or equivalent). Court process search was done. Gazette search was done.

...is strong evidence that you met the professional standard. A matter file with none of these is not.

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For Litmus Users

Litmus verification reports include a Section 106B Evidence Act certificate, making them admissible without additional authentication. Store the report in the matter file alongside the other due diligence records.

The report's electronic components are certified as of the date of the verification, providing a dated, traceable record of the title state at the time of the transaction.

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This article is for general information only. It does not constitute legal advice. For record-keeping compliance advice specific to your practice, consult a Kenya advocate specialising in financial crime and regulatory compliance.