On June 17, 2025, President William Ruto signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, during a brief ceremony held at State House, Nairobi. The law, which had earlier been passed by the National Assembly, represents a significant step in Kenya's efforts to strengthen its financial regulatory framework and fight financial crime more effectively.

The amendments introduce a more robust system for monitoring and reporting suspicious financial transactions. Financial institutions are now required to adhere to tighter compliance measures and report unusual activity to the Financial Reporting Centre (FRC) more efficiently. This is meant to curb the movement of illicit funds and prevent their use in financing criminal or terrorist operations.

One of the major drivers behind these reforms is Kenya's inclusion in the Financial Action Task Force (FATF) grey list in 2024. Being on this list signified weaknesses in the country’s anti-money laundering and counter-terrorist financing systems. The new law is a direct response aimed at addressing these concerns and demonstrating Kenya’s commitment to international standards. It also improves coordination between investigative bodies and empowers institutions to trace and recover illegally acquired assets.

By tightening oversight, increasing penalties for non-compliance, and streamlining the recovery of assets, the new law not only boosts Kenya’s global credibility but also promotes financial transparency and national security. The signing of the bill is a clear signal that the government is taking deliberate steps to restore investor confidence and protect Kenya’s financial system from abuse.

As the new law comes into effect, the responsibility now shifts to enforcement agencies and financial institutions to ensure that these measures are fully implemented. The success of the reforms will depend on cooperation, capacity building, and a shared commitment to clean and secure financial operations in Kenya.