Kenya has taken a major step in strengthening its fight against money laundering, terrorism financing, and the funding of illegal activities by passing the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025. The new law, which came into force after being published in the Kenya Gazette in June 2025, significantly expands oversight, closes long-standing loopholes, and brings many professions and businesses under stricter financial scrutiny.
At its core, the law is about protecting ordinary citizens. Money laundering and terrorism financing are not abstract crimes—they fuel corruption, inflate prices, weaken public services, and threaten national security. By tightening controls on how money moves through the economy, the government aims to ensure that Kenya’s financial system is not used to hide stolen wealth or finance violence.
One of the most visible changes introduced by the amendment is the restructuring of leadership within the Assets Recovery Agency. The law replaces the title “Agency Director” with “Agency Director-General,” a move that clarifies authority and strengthens institutional command. The Director-General is now empowered to designate investigators directly, allowing faster and more coordinated investigations into suspicious wealth and financial crimes
This change matters because delays and unclear chains of command have historically slowed asset recovery efforts. With clearer leadership, investigations into unexplained wealth, corruption proceeds, and organized crime are expected to become more efficient.
For the first time, the law clearly brings dealers in precious metals and precious stones—including miners, brokers, jewelry manufacturers, and retailers—under strict anti-money laundering rules. Any cash transaction equal to or above USD 15,000 must now be reported. This targets a sector long known globally for being vulnerable to money laundering due to high-value cash transactions and weak documentation.
Beyond precious stones, the amendments extend anti-money laundering and counter-terrorism financing obligations to a wide range of sectors, including betting and gaming companies, Saccos, retirement benefit schemes, estate agents, accountants, company secretaries, and mining operators. These institutions must now actively monitor transactions, report suspicious activity, and comply with inspections by their regulators.
Another key shift introduced by the law is the adoption of a risk-based approach to supervision. Instead of treating all institutions the same, regulators such as the Financial Reporting Centre and sector-specific authorities must now focus more attention on businesses and activities that pose higher risks of money laundering or terrorism financing.
This approach recognizes reality: not all businesses carry equal risk. A large betting firm handling millions of shillings daily, for example, requires closer scrutiny than a small cooperative with limited transactions. By focusing resources where the danger is greatest, the law aims to improve effectiveness without overburdening low-risk institutions.
The amendment law significantly increases penalties for non-compliance. Individuals who violate anti-money laundering or terrorism financing regulations now face fines of up to KSh 10 million or imprisonment of up to seven years, while companies can be fined up to KSh 20 million. In terrorism financing cases, jail terms can extend to 20 years for individuals.
These penalties send a clear message: ignoring financial regulations is no longer a minor administrative issue but a serious criminal offence. The inclusion of daily penalties for continued non-compliance also ensures that businesses cannot simply delay compliance as a cost-saving strategy.
The amendments also align Kenya’s laws with international obligations, particularly United Nations sanctions regimes. Authorities are now empowered to enforce targeted financial sanctions, including freezing assets and blocking funds linked to individuals or entities designated by UN sanctions committees.
This alignment is crucial for Kenya’s global standing. Strong anti-money laundering laws help protect the country from being blacklisted internationally, which could otherwise hurt trade, foreign investment, and access to global financial systems.
For everyday Kenyans, the law offers long-term protection. When dirty money is blocked, public funds are more likely to reach hospitals, schools, and infrastructure projects instead of disappearing into private pockets. Strong financial controls also help stabilize the economy, protect savings, and reduce the influence of criminal networks.
However, citizens should also expect stricter checks when conducting large transactions, especially in cash-heavy sectors. While this may feel inconvenient, it is a necessary trade-off for greater transparency and national security.
The success of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025 will ultimately depend on enforcement. Strong laws on paper must be matched with integrity, professionalism, and political will. If implemented faithfully, the Act has the potential to significantly reduce financial crime and restore public confidence in Kenya’s financial and governance systems.
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At its core, the law is about protecting ordinary citizens. Money laundering and terrorism financing are not abstract crimes—they fuel corruption, inflate prices, weaken public services, and threaten national security. By tightening controls on how money moves through the economy, the government aims to ensure that Kenya’s financial system is not used to hide stolen wealth or finance violence.
One of the most visible changes introduced by the amendment is the restructuring of leadership within the Assets Recovery Agency. The law replaces the title “Agency Director” with “Agency Director-General,” a move that clarifies authority and strengthens institutional command. The Director-General is now empowered to designate investigators directly, allowing faster and more coordinated investigations into suspicious wealth and financial crimes
This change matters because delays and unclear chains of command have historically slowed asset recovery efforts. With clearer leadership, investigations into unexplained wealth, corruption proceeds, and organized crime are expected to become more efficient.
For the first time, the law clearly brings dealers in precious metals and precious stones—including miners, brokers, jewelry manufacturers, and retailers—under strict anti-money laundering rules. Any cash transaction equal to or above USD 15,000 must now be reported. This targets a sector long known globally for being vulnerable to money laundering due to high-value cash transactions and weak documentation.
Beyond precious stones, the amendments extend anti-money laundering and counter-terrorism financing obligations to a wide range of sectors, including betting and gaming companies, Saccos, retirement benefit schemes, estate agents, accountants, company secretaries, and mining operators. These institutions must now actively monitor transactions, report suspicious activity, and comply with inspections by their regulators.
Another key shift introduced by the law is the adoption of a risk-based approach to supervision. Instead of treating all institutions the same, regulators such as the Financial Reporting Centre and sector-specific authorities must now focus more attention on businesses and activities that pose higher risks of money laundering or terrorism financing.
This approach recognizes reality: not all businesses carry equal risk. A large betting firm handling millions of shillings daily, for example, requires closer scrutiny than a small cooperative with limited transactions. By focusing resources where the danger is greatest, the law aims to improve effectiveness without overburdening low-risk institutions.
The amendment law significantly increases penalties for non-compliance. Individuals who violate anti-money laundering or terrorism financing regulations now face fines of up to KSh 10 million or imprisonment of up to seven years, while companies can be fined up to KSh 20 million. In terrorism financing cases, jail terms can extend to 20 years for individuals.
These penalties send a clear message: ignoring financial regulations is no longer a minor administrative issue but a serious criminal offence. The inclusion of daily penalties for continued non-compliance also ensures that businesses cannot simply delay compliance as a cost-saving strategy.
The amendments also align Kenya’s laws with international obligations, particularly United Nations sanctions regimes. Authorities are now empowered to enforce targeted financial sanctions, including freezing assets and blocking funds linked to individuals or entities designated by UN sanctions committees.
This alignment is crucial for Kenya’s global standing. Strong anti-money laundering laws help protect the country from being blacklisted internationally, which could otherwise hurt trade, foreign investment, and access to global financial systems.
For everyday Kenyans, the law offers long-term protection. When dirty money is blocked, public funds are more likely to reach hospitals, schools, and infrastructure projects instead of disappearing into private pockets. Strong financial controls also help stabilize the economy, protect savings, and reduce the influence of criminal networks.
However, citizens should also expect stricter checks when conducting large transactions, especially in cash-heavy sectors. While this may feel inconvenient, it is a necessary trade-off for greater transparency and national security.
The success of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2025 will ultimately depend on enforcement. Strong laws on paper must be matched with integrity, professionalism, and political will. If implemented faithfully, the Act has the potential to significantly reduce financial crime and restore public confidence in Kenya’s financial and governance systems.
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