President William Ruto has today signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, a significant legislative step aimed at curbing financial crimes and aligning Kenya with global anti-money laundering standards.
The Bill, championed by National Assembly Majority Leader Kimani Ichung’wah, introduces critical amendments to ten Acts of Parliament to close loopholes that have facilitated illicit financial flows, especially through property dealings and shell companies. Among the amended laws are the Proceeds of Crime and Anti-Money Laundering Act, Prevention of Terrorism Act, Betting, Lotteries and Gaming Act, and Sacco Societies Act.
These changes were prompted by compliance deficiencies flagged by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF). In 2024, FATF placed Kenya on its “grey list” due to gaps in prosecuting money laundering and monitoring financial flows through NGOs and other non-profits. The new law is expected to enhance the use of financial intelligence, improve oversight over non-governmental entities, and tighten scrutiny on the source of financial transactions.
In addition, President Ruto also assented to the Insurance Professionals Bill (National Assembly Bill No. 13 of 2024), sponsored by Molo MP Kuria Kimani, Chairperson of the National Assembly Finance Committee. The legislation is designed to streamline regulation within the insurance profession, elevate service standards, and enforce accountability for misconduct.
The law designates the Insurance Institute of Kenya (IIK) as the official regulatory body for insurance professionals. It also establishes the Insurance Professionals Examinations Board to oversee professional qualification assessments and a Disciplinary Committee to address issues of professional misconduct, with powers to recommend action to the IIK’s Registration Committee.
These legislative developments mark a significant stride in Kenya’s reform agenda, aimed at strengthening financial transparency, enhancing regulatory oversight, and restoring international confidence in its financial systems.
Written By Rodney Mbua
