President William Ruto has signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025, days after the European Commission proposed to list Kenya among high-risk jurisdictions with deficiencies in anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.
- •The new law marks a step towards strengthening Kenya’s financial system by bolstering transparency, tightening regulation, and aligning with global AML/CTF standards.
- •Its success hinges on vigorous implementation, institutional backing, and supportive policymaking.
- •The move by Europe to grey list Kenya follows the Financial Action Task Force’s (FATF) grey listing in February 2024
“Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform,” President William Ruto said after signing the bill into law on Tuesday.
“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.”
One of the technical deficiencies identified in the Kenya’s Mutual Evaluation Report, published by the Eastern and Southern Africa Anti-Money Laundering Group in September 2024, was the lack of a Policy and Regulatory Framework to the Virtual Assets and Virtual Assets Service Providers. In order to regulate this sector, the Government has developed the Virtual Assets Service Providers Bill, 2025 which is currently before Parliament.
The Bill aims to regulate crypto firms by requiring them to set up offices locally, seek licenses, and have their executives and boards vetted by regulators.
The Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) will be the regulatory bodies tasked with the responsibility to provide licenses to crypto firms and supervising financial transactions.
For a firm to be licensed, the proposed legislation notes that it needs a ‘specified premise’ with records and documentation that can be accessed by regulators.
The immense rise in popularity for cryptos like Bitcoin and Ethereum, even finding favour with governments, has seen the Kenyan government join the fray and discard its long-standing skepticism.
The President has also signed the Insurance Professionals Bill (National Assembly Bills No. 13 of 2024) that will enhance the standards of service and promote professionalism in the industry.
