President William Ruto has signed into law the **Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025. This comes just days after the European Commission proposed adding Kenya to its list of high-risk jurisdictions due to deficiencies in anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.
The newly enacted law represents a critical step toward bolstering Kenya’s financial system. It aims to enhance transparency, tighten regulatory oversight, and align the nation with stringent global AML/CTF standards. Its ultimate success will largely depend on robust implementation, consistent institutional support, and a responsive policymaking environment.
Kenya’s inclusion on Europe’s potential greylist follows a similar move by the Financial Action Task Force (FATF), which placed the country on its greylist 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 Ruto stated following the bill’s signing 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.”
A key technical deficiency identified in Kenya’s Mutual Evaluation Report, published by the Eastern and Southern Africa Anti-Money Laundering Group in September 2024, was the absence of a clear policy and regulatory framework for Virtual Assets and Virtual Assets Service Providers (VASPs).
To address this, the government has developed the Virtual Assets Service Providers Bill, 2025, which is currently undergoing parliamentary review. This groundbreaking bill seeks to regulate the burgeoning crypto sector by mandating that firms establish local offices, secure licenses, and have their executives and boards undergo vetting by regulatory authorities.
The Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) are designated as the primary regulatory bodies responsible for licensing crypto firms and overseeing their financial transactions. Under the proposed legislation, a firm must possess a ‘specified premise’ with accessible records and documentation to qualify for a license.
President Ruto also signed the Insurance Professionals Bill (National Assembly Bills No. 13 of 2024) into law. This legislation is set to elevate service standards and promote professionalism within Kenya’s insurance industry.