Kenya has taken a decisive step in combating illicit financial activity after President William Ruto signed the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2023 into law on Tuesday, June 17, 2025. The legislation, which had initially been passed by Parliament in April, returned to the House with proposed amendments from the President that have now been adopted.
The new law introduces stricter penalties, wider reporting obligations, and enhanced oversight for financial institutions, in a sweeping effort to plug loopholes that enable money laundering and terrorism financing. It aligns Kenya with global financial transparency standards, particularly those outlined by the Financial Action Task Force (FATF) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).
“This legislation reinforces our vision of financial integrity and regulatory reform by closing gaps exploited through shell companies and real estate deals,” said President Ruto, emphasizing Kenya’s commitment to becoming a regional leader in financial governance.
The enhanced law significantly strengthens the mandate of the Financial Reporting Centre (FRC), allowing for better inter-agency coordination in identifying and flagging suspicious financial transactions. It also provides clearer mechanisms for the recovery of assets acquired through criminal activities.
Notably, the law increases scrutiny over a broad range of sectors, including betting firms, landlords, SACCOs, retirement benefit schemes, estate agents, jewel dealers, NGOs, and public accountants. These entities will now face stricter compliance requirements and be subject to increased reporting obligations.
The reform was deemed urgent following Kenya’s placement on the FATF grey list in February 2024, which raised red flags internationally about the country’s ability to monitor financial crimes effectively. National Assembly Majority Leader Kimani Ichung’wah stressed that the law was vital to restoring investor confidence and shielding Kenya from financial isolation.
One of Ruto’s key amendments involved the tenure of the FRC’s principal officer. He recommended a transitional clause to prevent terms exceeding constitutional limits, ensuring alignment with the broader governance framework.
The law marks a major milestone in Kenya’s fight against illicit financial flows, aiming to restore public trust and secure the country’s economic future.
