Following Parliament's approval of his suggested changes, President William Ruto has enacted new laws that subject money launderers to increased oversight and harsher punishments.
On June 17, 2025, which was a Tuesday, the President signed off on the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2023 at State House in Nairobi.
Shortly after the signing, Ruto reaffirmed Kenya's dedication to implementing reforms that strengthen its position as a key figure in financial integrity and regulatory oversight within the region.
"The enactment of the Anti-Money Laundering and Terrorist Financing Prevention Amendments Act 2025 strengthens this objective by closing loopholes that enable illegal financial activities through real estate deals and the utilization of shell corporations," he stated on his X account.
This law brings about extensive changes designed to bolster Kenya’s measures against money laundering, enhance social welfare programs, and ensure fair distribution of revenues.
Initially passed by Parliament in April 2025, the Bill was returned by the President with proposed amendments for stricter provisions in certain clauses.
The updated legislation brings Kenya's legal framework into alignment with international benchmarks for financial transparency and efforts to combat terrorism financing.
This strengthens the authority of the Financial Reporting Centre and boosts cooperation among agencies in identifying dubious financial transactions.
This legislation further tightens the regulatory supervision over financial institutions, broadens the criteria for reporting suspicious activities, and increases the consequences for failing to comply.
It establishes more transparent procedures for reclaiming assets believed to be derived from criminal activities.
During a debate in Parliament on April 16, 2025, National Assembly Majority Leader Kimani Ichung’wah highlighted the urgency of the legislation.
Ichung'wah cautioned that failing to take decisive action might result in ongoing international oversight and possible economic exclusion.
He described the Bill as an essential move for rebuilding investor trust and ensuring increased financial stability.
The new law also addresses Kenya’s position on the Financial Action Task Force (FATF) grey list from February 2024.
This classification sparked worries regarding the nation's potential to draw in overseas investments and underscored shortcomings in addressing money laundering and terrorist funding activities.
The legislation aligns Kenya with the guidelines set forth by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This organization has been actively collaborating with Kenyan officials to introduce essential changes.
The legislation grants regulators stronger capabilities to tackle illegal monetary movements, which are commonly accused of undermining public confidence, promoting bribery, and enabling criminal organizations.
This subjects organizations like betting companies, property owners, pension plans, savings cooperatives, real estate agencies, certified public secretaries, gem traders, accountants, and non-governmental organization administrators to increased oversight as part of the initiative to guarantee strict adherence to financial disclosure requirements.
When sending the initial bill back to Parliament through his memorandum, President Ruto expressed reservations about Clause 3(2). This clause aimed to restrict the tenancy period for the head of the Financial Reporting Centre to an unextendable span of six years.
He contended that the clause was at odds with the constitutional structure designed for autonomous officials.
Ruto highlighted that the suggested tenured appointment might stretch up to 10 years, surpassing the constitutional limit of eight years.
He suggested adding a transitional clause, indicating that anyone appointed under Section 25 of the Proceeds of Crime and Anti-Money Laundering Act would hold office according to the conditions effective at the moment of their appointment.
0 Komentar