Kenya’s fight against financial crime received a major boost this April after the National Assembly unanimously passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025.
The landmark legislation is a key feature of the Assembly’s recently concluded session and is part of broader efforts to align Kenya’s financial systems with global anti-money laundering (AML) and counter-terrorism financing (CTF) standards. Tabled as National Assembly Bill No. 5 of 2025, the legislation strengthens the legal mandate of the Financial Reporting Centre (FRC)—Kenya’s primary AML/CTF agency—and enhances inter-agency coordination to trace and disrupt illicit financial flows. The new law responds to international recommendations from oversight bodies such as the Financial Action Task Force (FATF), which has previously flagged gaps in Kenya’s financial regulatory framework. National Assembly Speaker Moses Wetang’ula lauded the bipartisan support for the Bill, emphasizing the urgency of addressing financial crimes that threaten national and regional stability.“This legislation is not just timely; it is crucial to protecting Kenya’s financial system from abuse and to restoring global confidence in our regulatory framework,” he said.The amended law empowers the FRC to issue binding directives to reporting institutions, facilitates the exchange of financial intelligence between local and international agencies, and tightens compliance requirements for banks, fintech firms, and other financial actors. It also introduces steeper penalties for non-compliance and provides new tools for asset tracing and seizure. The AML Bill was one of five major pieces of legislation passed during the session. Others included the Division of Revenue Bill, which governs fiscal allocations between the national and county governments, and the Excise Duty (Amendment) Bill, which introduced new taxes projected to raise over Sh60 billion in domestic revenue. Notably, the Assembly also passed the Social Protection Bill, creating a comprehensive framework for welfare support, and approved additional funding to counties under the County Governments Additional Allocations Bill. While the broader legislative agenda touched on economic, social, and governance priorities, the passage of the AML Bill stood out for its potential to elevate Kenya’s standing in the global financial system and to safeguard against economic crimes that have long undermined development efforts. The April session’s developments reflect Kenya’s renewed commitment to institutional reform, fiscal accountability, and the rule of law—a direction that is increasingly vital as the country navigates complex global financial networks.
