NAIROBI, Kenya – The National Assembly is set to tighten Kenya’s anti-money laundering framework after a key parliamentary committee approved a landmark Bill that will expand government oversight to a wide range of sectors, including betting firms, landlords, NGOs, and professional groups.
The Departmental Committee on Justice and Legal Affairs (JLAC), chaired by Tharaka MP George Murugara, has endorsed the Anti-Money Laundering and Countering Terrorism Financing Laws (Amendment) Bill, 2025, calling for its passage with several proposed amendments.
The draft legislation, driven by President William Ruto’s administration, seeks to align Kenya’s financial regulations with global standards and address weaknesses flagged by international watchdogs.
“This Bill is necessary to ensure compliance with global standards on anti-money laundering and combating terrorism financing,” the committee stated in its report to Parliament.
If passed into law, the Bill will bring several sectors previously outside the regulatory spotlight under strict scrutiny.
Those to be monitored include betting companies, landlords and estate agents, Sacco members and officers, certified public accountants and secretaries, jewel dealers and precious mineral producers, NGO managers and civil society groups, and retirement benefits schemes
The committee approved enhanced vetting and supervision mechanisms for these groups, including mandatory background checks on directors, shareholders, and staff of betting companies by the Betting Control and Licensing Board (BCLB). On-site and off-site inspections are set to increase.
The move follows Kenya’s greylisting by the Financial Action Task Force (FATF) in February 2023 over inadequate efforts to combat money laundering and terrorism financing.
Failure to comply with international standards could lead to blacklisting, potentially isolating Kenya from global financial systems.
The Bill also grants expanded authority to key institutions:
- The Financial Reporting Centre (FRC) will have the power to block funds suspected of being linked to illicit activities.
- The Public Benefits Regulatory Authority (PBRA) will now monitor financial activity in civil society organizations to guard against abuse.
- The Director of Mines is expected to roll out new rules to vet dealers and regulate the trade in precious stones and minerals.
- The Institute of Certified Public Accountants of Kenya (ICPAK) will be mandated to vet members of reporting institutions and compel documentation when necessary.
- The Retirement Benefits Authority will oversee vetting in pension schemes.
The penalties for non-compliance are steep. Failure to report suspicious transactions could attract a fine of Sh10 million, a seven-year jail term, or both. Organizations found in breach face penalties of up to Sh20 million.
While the Law Society of Kenya (LSK) had submitted proposals for additional amendments, the committee recommended they be considered separately at a later stage, saying, “The proposals could be introduced as substantive amendments in the future.”
