On Tuesday, June 17, 2025, the President assented to the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2023 at State House, Nairobi.
Speaking shortly after the signing, Ruto reiterated Kenya’s commitment to pursuing reforms that solidify its role as a regional leader in financial integrity and regulatory enforcement.
“The signing of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, reinforces this vision by sealing gaps that facilitate illicit financial flows via property transactions and the use of shell companies,” he said via his X platform.
The legislation introduces comprehensive reforms aimed at tightening Kenya’s anti-money laundering framework, strengthening social protection systems, and guiding equitable revenue allocation.
Initially passed by Parliament in April 2025, the Bill was returned by the President with proposed amendments for stricter provisions in certain clauses.
The new law aligns Kenya’s legal structure with global standards on financial transparency and terrorism financing.
It enhances the mandate of the Financial Reporting Centre and improves collaboration between agencies in detecting suspicious financial activity.
The law also introduces tighter regulatory oversight of financial institutions, expands reporting requirements for unusual transactions, and strengthens penalties for non-compliance.
It sets out clearer mechanisms for the recovery of assets suspected to be proceeds of crime.
During a debate in Parliament on April 16, 2025, National Assembly Majority Leader Kimani Ichung’wah highlighted the urgency of the legislation.
Ichung’wah warned that failure to act decisively could lead to continued international scrutiny and potential financial isolation.
He termed the Bill a critical step toward restoring investor confidence and achieving greater economic stability.
The legislation also responds to Kenya’s placement on the Financial Action Task Force (FATF) grey list in February 2024.
That designation raised concerns about the country’s ability to attract foreign investment and highlighted deficiencies in combating money laundering and terrorism financing.
The law brings Kenya in line with recommendations from the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), which has been closely working with Kenyan authorities to implement necessary reforms.
The law gives regulators enhanced powers to combat illicit financial flows, which are widely blamed for eroding public trust, fuelling corruption, and facilitating organised crime.
It places
entities such as betting firms, landlords, retirement benefit schemes, SACCOs,
estate agents, certified public secretaries, jewel dealers, accountants, and
NGO managers under closer scrutiny as part of efforts to ensure full compliance
with financial reporting standards.
In his memorandum returning the original Bill to Parliament, President Ruto raised concerns with Clause 3(2), which sought to limit the tenure of the Financial Reporting Centre’s principal officeholder to a non-renewable six-year term.
He argued that the provision conflicted with the constitutional framework governing independent officeholders.
Ruto pointed out that the proposed tenure arrangement could potentially extend to 10 years, exceeding the constitutional cap of eight years.
He recommended the inclusion of a transitional clause, stating that any officeholder appointed under Section 25 of the Proceeds of Crime and Anti-Money Laundering Act would serve under the terms that were in place at the time of their appointment.
