• President William Ruto signs law strengthening financial crime enforcement

• Reform addresses FATF gray listing and enhances oversight in real estate and mining

• Ten laws amended to meet international compliance standards

Kenyan President William Ruto has signed into law a bill amending the country’s legislation on money laundering and terrorism financing. The measure, announced on June 17, 2025, by the Presidential office, aims to strengthen Kenya’s legal and institutional framework against illicit financial flows.

The new law follows heightened scrutiny from the Financial Action Task Force (FATF), which placed Kenya on its gray list in February 2024. The FATF cited significant gaps in Kenya’s ability to combat money laundering, terrorist financing, and the misuse of sectors such as real estate and shell companies.

According to the Presidential statement, the law is intended to fortify Kenya’s financial system by curbing the proliferation of illicit funds and enhancing regulatory transparency. It targets improved oversight in high-risk sectors such as real estate and mining, aiming to attract more foreign direct investment and expand the tax base by formalizing economic activity.

The Anti-Money Laundering Group of East and Southern Africa (ESAAMLG) had earlier flagged weaknesses across Kenya’s financial system, legal structures, and cross-border financial operations. In response, Kenya amended ten existing laws, including the Proceeds of Crime and Anti-Money Laundering Act, the Prevention of Terrorism Act, and the Mining Act.

Kenya has since made measurable progress in closing technical compliance gaps. Notable efforts include completing a terrorist financing risk assessment and aligning its targeted financial sanctions (TFS) framework with FATF standards.

The government views the enactment as a critical step toward restoring international confidence and improving financial system integrity across sectors vulnerable to misuse.