By Dorothy Musyoka
The National Assembly has passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, with key amendments aimed at aligning the country with global standards set by the Financial Action Task Force (FATF).
Sponsored by the Leader of the Majority Party, Hon. Kimani Ichung’wah, the Bill was introduced in the House on March 4th, 2025, and has since undergone rigorous debate and scrutiny.
It targets technical deficiencies in Kenya’s legal framework that led to the country’s inclusion on FATF’s grey list.
During the debate, the Chair of the Departmental Committee on Finance and National Planning, Hon. Kuria Kimani, underscored the urgency of the legislation.
“We are debating this Bill today because Kenya is currently on the Financial Action Task Force (FATF) grey list. Unless we act with urgency, the consequences could be severe and long-lasting,” said Hon. Kimani Kuria.
Hon. Kuria also highlighted emerging risks posed by unregulated digital assets, proposing amendments to extend regulatory scrutiny to virtual assets, cryptocurrencies, betting firms and savings and credit cooperatives (Saccos).
The Bill proposes comprehensive changes to ten existing Acts of Parliament to bolster anti-money laundering (AML), counter-terrorism financing (CTF) and counter-proliferation financing (CPF) mechanisms across various sectors. Key highlights include:
- Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A): Establishes a Director General as the head of the Asset Recovery Agency and places dealers in precious metals and stones under regulatory oversight.
- Prevention of Terrorism Act (Cap. 59B): Expands the definition of terrorism financing to include provision of funds, services and travel arrangements linked to terrorism.
- Betting, Lotteries and Gaming Act (Cap. 131): Empowers the Betting Control and Licensing Board to monitor AML, CTF and CPF compliance among betting entities.
- Retirement Benefits Act (Cap. 197): Strengthens the oversight role of the Retirement Benefits Authority in addressing illicit financial flows within the pension sector.
- Mining Act (Cap. 306): Mandates the Director of Mining to enforce AML/CTF/CPF compliance in the mining industry.
Other laws amended by the Bill include the Sacco Societies Act, the Accountants Act, the Estate Agents Act, the Institute of Certified Public Secretaries Act, and the Public Benefits Organizations Act.
If fully enacted, the legislative overhaul will significantly boost Kenya’s efforts to comply with international AML/CTF standards.