Banking & Finance
Kenya Enacts AML Law to Fix FATF Greylisting
Kenya has enacted a new anti-money laundering law to tackle illicit financial flows. The move targets crypto platforms, shell companies, and real estate loopholes.
Kenya signed a tough anti-money laundering law on June 19, 2025, expanding oversight to crypto, real estate, and shell firms.
Kenya has officially enacted a sweeping anti-money laundering law to strengthen its financial system and fix key deficiencies flagged by global watchdogs. The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025 was signed into law by President William Ruto on June 19, 2025, marking a significant regulatory milestone.
The legislative move comes shortly after the European Commission listed Kenya among high-risk jurisdictions for failing to adequately curb money laundering and terrorist financing.
The new law broadens regulatory oversight to cover:
- Real estate transactions
- Shell companies
- Virtual asset platforms, such as cryptocurrency exchanges
“Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform,” said President Ruto.
The President emphasized that the new framework directly addresses long-standing weaknesses in monitoring property deals and opaque corporate structures, previously used as channels for illicit financial flows.
The legislation is a response to Kenya’s greylisting by the Financial Action Task Force (FATF) in February 2024. That designation raised concerns over cross-border transaction costs and investor confidence.
In September 2024, Kenya’s Mutual Evaluation Report by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) highlighted the absence of digital asset regulations as a major gap in the financial integrity framework.
To bridge this gap, the government has introduced the Virtual Asset Service Providers Bill, 2025, currently under parliamentary review. It proposes:
- Mandatory local offices for crypto firms
- Vetted management teams
- Transparent record-keeping
Oversight will be handled by both the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).
This marks a clear policy shift from earlier skepticism towards Bitcoin, Ethereum, and other virtual currencies, signaling a desire to bring crypto into Kenya’s regulatory fold.
On the same day, President Ruto also signed into law the Insurance Professionals Bill (National Assembly Bills No. 13 of 2024). This aims to:
- Enforce professionalism in the insurance industry
- Improve service standards and regulatory conduct
Kenya joins Algeria, Angola, and Côte d’Ivoire, which were recently greylisted by the EU. Senegal and Uganda, however, were successfully delisted after implementing reforms.
With the international spotlight on Kenya’s compliance record, the successful implementation of these new laws will be key to:
- Restoring global trust
- Lowering the cost of financial transactions
- Protecting Kenya’s access to international financial systems