New bill to tighten oversight on high-tisk money channels

The National Assembly is moving closer to enforcing tougher anti-money laundering rules after a committee approved a bill that will widen the net of financial supervision across different sectors.

The Justice and Legal Affairs Committee (JLAC), led by Tharaka MP Gitonga Murugara, has approved the Anti-Money Laundering and Countering Terrorism Financing Laws (Amendment) Bill, 2025.

"The committee recommends that the House approve the bill with amendments as proposed (by the committee)," the report reads.

The bill seeks to strengthen the state's powers to detect and stop money laundering and terrorism financing through several changes to the current law. Betting firms, retirement schemes, Saccos, landlords, and accountants are among the main targets.

President William Ruto’s government is behind the bill, hoping to plug gaps that saw Kenya placed on the FATF greylist in 2023. That move followed global concerns over weak financial safeguards.

In its report, JLAC stated, "The bill is necessary to ensure compliance with global standards of anti-money laundering and combating terrorism financing."

Under the proposed changes, the Betting Control and Licensing Board (BCLB) would have the power to vet directors, beneficial owners, and senior staff of betting companies.

The board would also carry out routine inspections and remote surveillance of betting firms.

Public Benefits Regulatory Authority will be granted the power to monitor NGO finances and report suspicious activity.

"The regulator would be clothed with powers to safeguard civil society groups from the risk of money laundering and terrorism financing," the committee said.

The new law will also cover players in the mineral and jewellery business.

The director of mines will vet new mineral rights holders and dealers and will develop rules for further regulation.

Saccos and their directors, officers, and members will be vetted.

The Retirement Benefits Authority will supervise those investing in pension schemes. Similarly, accountants and estate agents will be required to produce records when requested by regulators.

The Institute of Certified Public Accountants of Kenya (ICPAK) will ensure that accountants under its watch comply with the Anti-Money Laundering law.

Certified public secretaries will also be held to the same standard.

Anyone failing to report suspicious activity could face a Sh10 million fine or up to seven years in jail. Organisations that breach the law may be fined Sh20 million.

The Financial Reporting Centre will have expanded powers to block or prevent the use of funds linked to money laundering or terrorist activities.

It will also oversee compliance through various supervisory bodies.

Law Society of Kenya’s proposals for wider reforms were set aside by the committee.

"The proposals could be introduced as substantive amendments in the future," the report noted.