Kenya Bolsters Financial Integrity with New Anti-Money Laundering Legislation
The bill also introduces oversight for virtual assets and cryptocurrencies, reflecting the growing influence of digital financial systems.
The National Assembly of Kenya has passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, marking a significant step toward aligning the country with global financial standards. Photo/Parliament of Kenya.
By Robert Assad
The National Assembly of Kenya has passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, marking a significant step toward aligning the country with global financial standards.
The bill, sponsored by Kimani Ichung’wah, Leader of the Majority Party, addresses critical gaps in Kenya’s legal framework to combat money laundering, terrorism financing, and proliferation financing.
The legislation, which underwent its first reading on March 4, 2025, amends ten existing Acts of Parliament, including the Proceeds of Crime and Anti-Money Laundering Act and the Prevention of Terrorism Act.
Key amendments include appointing a Director General to lead the Asset Recovery Agency and classifying dealers in precious metals and stones as regulated entities under the Financial Reporting Centre.
The bill also introduces oversight for virtual assets and cryptocurrencies, reflecting the growing influence of digital financial systems.
Hon. Kuria Kimani, Chair of the Finance and Planning Committee, underscored the urgency of the bill, citing Kenya’s placement on the Financial Action Task Force (FATF) grey list for non-compliance with international standards.
“Unless we act swiftly, the economic consequences could be severe,” he warned during the debate, emphasizing the risk of global financial isolation. The grey list designation has dented Kenya’s international financial reputation, impacting investor confidence.
The bill strengthens regulatory oversight across multiple sectors. Amendments to the Betting, Lotteries and Gaming Act empower the Betting Control and Licensing Board to enforce compliance, while changes to the Mining Act enable the Director of Mining to regulate the sector.
Similar enhancements are proposed for the Sacco Societies Act, Retirement Benefits Act, and Public Benefits Organizations Act, among others, to curb illicit financial activities.
A notable feature of the legislation is its focus on terrorism financing, with the Prevention of Terrorism Act now explicitly defining offenses related to funding terrorist activities, including travel for terrorism purposes. These measures aim to bolster Kenya’s counter-terrorism framework.
If fully implemented, the amendments could pave the way for Kenya’s removal from the FATF grey list, restoring its standing in global financial markets. As the country awaits the bill’s adoption, stakeholders remain optimistic about its potential to enhance economic stability and attract foreign investment.
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