President Ruto Signs New Laws to Strengthen Kenya’s Financial Sector and Fight Money Laundering
President William Ruto has just signed two significant pieces of legislation that are set to bolster the financial sector in the country: the Insurance Professionals Bill and the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill, 2025.
The New Insurance Professionals Act is designed to elevate the industry by implementing strict qualifications, licensing standards, and disciplinary measures for insurance practitioners. This move is expected to eliminate fraudsters, boost public confidence in the insurance sector, and bring Kenya’s practices in line with international standards.
With this new law, insurance professionals will need to register with a central regulatory authority, engage in ongoing professional development, and follow a code of ethics. Those who fail to comply could face deregistration, fines, or even criminal charges, depending on how serious the violation is.
The Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Act 2025 is here to close the legal gaps that have allowed criminals to take advantage of Kenya’s financial and real estate sectors.
Some of the major updates include stricter regulations on property transactions, a closer look at who really owns shell companies, and more extensive reporting requirements for financial institutions. This new law also gives enforcement agencies the power to quickly freeze or seize any suspicious assets.
The government is optimistic that these changes will not only help curb illegal financial activities but also enhance Kenya’s standing with global regulators like the Financial Action Task Force (FATF), which keeps an eye on how well countries adhere to international AML/CFT standards.
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After the signing ceremony at State House, President Ruto made a statement highlighting his administration’s dedication to turning Kenya into a regional powerhouse for financial transparency and regulatory enforcement.
“Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform,” Ruto stated.
The recent developments follow the European Commission’s decision to include Kenya in its updated list of high-risk jurisdictions, highlighting significant gaps in their national anti-money laundering and counter-terrorism financing efforts.
In a statement released on June 10, the Commission announced that several third-country jurisdictions were added to this list, which now includes Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.
As a result, Kenya and the other listed countries are now subject to increased scrutiny regarding their money laundering controls, effectively placing them on a blacklist.
In response, Kenya’s Financial Reporting Centre has ramped up its efforts to monitor suspicious financial transactions. The FRC is also broadening its collaboration with reporting institutions—particularly banks, insurance companies, Saccos, and forex bureaus—by implementing real-time transaction monitoring and strengthening due diligence protocols.
President Ruto Signs New Laws to Strengthen Kenya’s Financial Sector and Fight Money Laundering
