Nairobi, Kenya — President William Ruto has signed a wide-ranging law aimed at cracking down on money laundering and the financing of terrorism, as Kenya races to repair its global financial image.
The new legislation the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025 was signed into law Tuesday morning at State House, Nairobi.
“This law strengthens Kenya’s ability to detect and prevent financial crimes that have for years undermined our institutions,” President Ruto said during the brief signing ceremony.
The Bill, introduced by National Assembly Majority Leader Kimani Ichung’wah, closes legal gaps that previously allowed illicit money to flow through the system particularly through shell companies and questionable property deals.
The law amends 10 key Acts of Parliament. These include the Proceeds of Crime and Anti-Money Laundering Act, Prevention of Terrorism Act, Betting, Lotteries and Gaming Act, and Sacco Societies Act, among others.
It also targets professional sectors long seen as vulnerable estate agents, certified public secretaries, and even accountants.
Pressure from Global Watchdog
This legal push comes after Kenya was placed on the grey list by the Financial Action Task Force (FATF) in 2024. The international watchdog flagged serious shortcomings in how the country investigates and prosecutes financial crimes.
FATF recommended that Kenya improve how it uses financial intelligence and tighten oversight on NGOs and non-profit bodies, which are sometimes misused to hide criminal proceeds.
The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) had also called for action, urging the government to align local laws with international standards.
“Kenya had to respond quickly to avoid lasting reputational and economic damage,” said an official in the Ministry of Treasury, speaking anonymously because they were not authorised to comment publicly.
More Than Just Money
In a separate move, Ruto also signed into law the Insurance Professionals Bill, which aims to clean up the insurance industry another sector often viewed with suspicion by regulators and consumers alike.
The law, championed by Molo MP Kuria Kimani, seeks to raise professional standards in insurance and penalise misconduct.
Under the new framework, the Insurance Institute of Kenya (IIK) will act as the main regulatory body for insurance professionals. A new Insurance Professionals Examinations Board will also be established to certify practitioners.
Crucially, the law introduces a Disciplinary Committee that will hear cases of professional misconduct and recommend sanctions where necessary.
“This is a big step forward for an industry that has lacked proper oversight for too long,” said Mr Kimani, who chairs the National Assembly’s Finance Committee.
Looking Ahead
With the signing of both laws, Kenya is positioning itself as a more transparent and secure financial player in the region. But experts warn the test lies in enforcement.
“It’s one thing to change the law. It’s another to change behaviour,” said a Nairobi-based risk analyst. “The institutions must now act.”
The government has pledged to report back to FATF by early 2026 on its progress. Whether these changes will lift Kenya off the grey list and restore confidence among investors remains to be seen.
