President William Ruto has signed into law a far-reaching Bill aimed at tightening Kenya’s efforts to fight money laundering, terrorism financing, and illegal financial flows.

The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, was passed by the National Assembly on April 16.

It was sponsored by Kimani Ichung’wah, Leader of the Majority Party.

After being sent back by the President with reservations on April 30, it was amended and passed again on June 3.

The new law updates ten existing laws, including the Proceeds of Crime and Anti-Money Laundering Act, the Prevention of Terrorism Act, the Betting, Lotteries and Gaming Act, and the Mining Act.

It seeks to address weaknesses flagged by international financial watchdogs and restore confidence in Kenya’s financial systems.

The law gives key regulators new powers to monitor and penalise non-compliance.

“The law empowers bodies that supervise professions and professionals that are likely conduits of money laundering and terrorism financing to supervise, monitor and conduct AML/CFT oversight,” a statement on the bill says.

Entities now under tighter regulation include real estate agents, casino operators, accountants, dealers in precious metals, and providers of trust and company secretarial services.

The law also targets Public Benefit Organizations that could be misused to fund terrorism.

The changes follow Kenya’s placement on the FATF grey list in 2024 for deficiencies in its anti-money laundering and terrorism financing framework.

The law aims to fix those gaps and remove the country from the list.

“The introduction of enhanced regulatory clarity and oversight in the real estate and mining sectors shall significantly boost investor confidence and attract Foreign Direct Investment,” reads part of the statement.

It also highlights expected growth in affordable housing, tax revenue, and youth employment.

The law also strengthens the Financial Reporting Centre by setting a single six-year term for its Director General. This is intended to secure its independence and ensure long-term stability.

Officials say the reforms will improve Kenya’s credit ratings and cut the cost of borrowing.

“The legal reforms introduced by the Bill restate and solidify Kenya’s position in the region as a leader in financial integrity and regulatory reform,” the statement adds.