Kenya AML/CFT Amendment Bill 2025

Regulation Name: AML/CFT Amendment Bill 2025
Date Of Release: 15 April 2025
Region: Kenya
Agency: Kenya Parliament

Kenya’s National Assembly Passes Landmark AML/CFT Bill to Strengthen Financial Oversight

Kenya’s National Assembly on Wednesday, April 16, passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025. The sweeping legislation introduces changes to ten key Acts of Parliament, aiming to address money laundering, terrorism financing, and the illicit proliferation of funds.

The bill, sponsored by National Assembly Majority Leader Kimani Ichung’wah, marks a concerted effort by the government to align Kenya’s financial regulatory framework with international standards—especially in light of the country’s grey-listing by the Financial Action Task Force (FATF) in 2023 due to non-compliance with global AML/CFT obligations.

“The bill seeks to address the technical compliance deficiencies identified arising from the Eastern and Southern Africa Anti-Money Laundering Group re-rating and review by FATF,” stated Ichung’wah during the parliamentary session.

Key Highlights of the Bill

1. Strengthening of the Asset Recovery Agency (ARA):

Under the amendments to the Proceeds of Crime and Anti-Money Laundering Act, the title ‘Director General’ will officially be adopted for the head of the Asset Recovery Agency, bringing it in line with other investigative bodies.

2. Expanded Definition of Terrorism Financing:

Amendments to the Prevention of Terrorism Act broaden the scope of terrorism financing and empower the Public Benefits Regulatory Authority (PBRA) to monitor and report on the financial activities of Non-Governmental Organisations (NGOs). This aims to improve transparency in civil society funding and reduce risks of misuse.

3. Tighter Controls on Betting Firms:

The Betting Control and Licensing Board will see a significant increase in its regulatory authority. Betting companies will now undergo rigorous background checks for shareholders, directors, and senior employees. This is intended to prevent criminal infiltration and ensure stronger compliance with AML/CFT standards.

4. Oversight of Retirement Benefits Sector:

Regulators under the Retirement Benefits Act will be tasked with enforcing AML/CFT rules across pension and retirement-related entities to close existing compliance gaps.

A Step Toward Global Reinstatement

The amendments represent a crucial step in Kenya’s ongoing efforts to be removed from the FATF grey list. By enhancing legal and institutional frameworks, the government seeks to demonstrate its commitment to combating financial crime and improving transparency across key sectors.

Once enacted, these legislative changes will not only bring Kenya closer to FATF compliance but also reinforce investor confidence and protect the financial system from exploitation.

Read the full law here.

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