In a landmark move aimed at restoring Kenya’s international financial standing, the National Assembly has passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, with lawmakers hailing it as a crucial step toward regulatory reform and economic protection.
The Bill, sponsored by the Leader of the Majority Party, Hon. Kimani Ichung’wah, seeks to address critical gaps in Kenya’s legal framework that have led to its inclusion on the Financial Action Task Force (FATF) grey list — a global watchlist for countries with strategic deficiencies in combating money laundering and terrorism financing.
“We are debating this Bill today because Kenya is currently on the FATF grey list. Unless we act with urgency, the consequences could be severe and long-lasting,” said Hon. Kuria Kimani, Chair of the Finance and Planning Committee, during the debate.
Among the major reforms is a proposal to bring virtual assets and cryptocurrencies under anti-terrorism scrutiny — a response to the global rise in unregulated digital finance platforms and the use of services like betting and saccos to launder illicit funds.
The Bill introduces amendments to ten existing Acts of Parliament, each empowering key regulatory authorities across multiple sectors to enforce compliance with anti-money laundering (AML), counter-terrorism financing (CTF), and counter-proliferation financing standards.
Key Amendments Include:
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Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A): Appointment of a Director General to head the Asset Recovery Agency and new oversight over precious metals and stone dealers as designated non-financial businesses under the Financial Reporting Centre.
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Prevention of Terrorism Act (Cap. 59B): Expands the definition of terrorism financing to include funding travel or providing resources for terrorist activities.
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Betting, Lotteries and Gaming Act (Cap. 131): Strengthens the role of the Betting Control and Licensing Board in regulating entities for AML and CTF compliance.
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Retirement Benefits Act (Cap. 197): Enhances the mandate of the Retirement Benefits Authority in monitoring and enforcing financial integrity among retirement schemes.
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Mining Act (Cap. 306): Grants the Director of Mining authority to enforce AML/CTF measures within the mining sector, often flagged for illicit financial flows.
Other laws targeted for amendment include the Sacco Societies Act, Accountants Act, Estate Agents Act, Institute of Certified Public Secretaries Act, and the Public Benefits Organizations Act, all of which will empower their respective regulatory bodies to monitor entities at risk of being exploited for terrorism financing.
The legislation comes at a critical juncture as Kenya strives to exit the FATF grey list — a status that has had far-reaching implications, including reduced investor confidence, increased transaction scrutiny, and potential isolation from international financial systems.
“This Bill isn’t just about compliance. It’s about protecting our economy, restoring investor confidence, and making Kenya a safer place,” added Hon. Kimani Ichung’wah.
If fully adopted and implemented, the new legal framework will position Kenya closer to meeting global standards and potentially pave the way for its removal from the FATF grey list — a move anticipated to revitalize foreign investment, trade partnerships, and global financial cooperation.
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