- Kenya's president signed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025.
- The law aims to strengthen Kenya's financial regulatory framework and address illicit financial activities.
- Kenya has been under increased international scrutiny, including placement on the EU's high-risk country list.
In response to money laundering and terrorist financial activities in Kenya, the president of the country recently signed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025.
Ruto initiates a new law to wipe the stain from Kenya’s financial image
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William Ruto's decision to sign the bill not only stems from the need to combat Kenya’s financial crimes challenges, but also to position the country as a leader in East Africa's financial integrity and regulatory reforms.
“Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform,” the president stated.
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The bill's signing reinforces this vision by sealing gaps that facilitate illicit financial flows via property transactions and the use of shell companies," he added.
Since February 2024, Kenya has been on the Financial Action Task Force’s grey list, officially designated as a jurisdiction “under increased monitoring” due to strategic deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CTF) framework, according to Global Financial Integrity.
On June 10, 2025, the EU placed Kenya on its list of “high‑risk third countries” for money laundering and terrorist financing due to lingering strategic deficiencies.
The union added Kenya to its list alongside other African countries, including Algeria, Angola, Côte d'Ivoire, Kenya, and Namibia.
Being included in the list means that these countries are now considered high-risk jurisdictions, requiring EU financial institutions to apply enhanced due diligence measures when dealing with transactions involving them.
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Given the contradiction between these unflattering designations and Kenya’s ambition to be a leader in East Africa’s financial landscape, Kenyan parliamentary members approved the anti-money laundering bill in April 2025, which amended several Acts of Parliament.
The law addresses technical compliance deficiencies identified by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), according to Tuko.
Additionally, it will also look into the Financial Action Task Force's (FATF) recommendations for Kenya's anti-money laundering, terrorism financing, and proliferation financing regimes.
