New Law Targets Real Estate, Mining, Saccos, and Digital Assets to Comply with Global Standards
Nairobi, Kenya – June 2025
In a bold step aimed at restoring financial credibility and regaining international trust, President William Ruto has signed into law a sweeping set of reforms targeting money laundering and terrorism financing in Kenya. The newly enacted legislation amends over ten major financial and sector-specific laws, expanding regulatory reach into previously under-monitored industries such as real estate, mining, Saccos, and digital assets.
This legislative move comes in direct response to the Financial Action Task Force (FATF)’s decision in early 2024 to place Kenya on its “grey list”—a designation given to countries with significant strategic deficiencies in their anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
Expanded Oversight Across Sectors
The law amends core acts including the Proceeds of Crime and Anti-Money Laundering Act, the Prevention of Terrorism Act, the Mining Act, and others governing betting, real estate, Saccos, accountants, and public benefit organizations. For the first time, non-financial institutions such as real estate agents, casinos, betting companies, and precious metal dealers are now under strict AML/CTF obligations.
Experts say these sectors have long served as conduits for illicit cash flow due to weak oversight and minimal transparency.
Focus on Digital and Virtual Assets
A significant innovation in the new law is the regulation of digital assets, including cryptocurrencies. With Kenya emerging as a fast-growing hub for fintech and mobile money, concerns have been raised globally about the potential misuse of these platforms for laundering illicit funds or financing terrorism.
The new amendments introduce clear provisions for monitoring virtual asset service providers and establish compliance obligations on crypto exchanges and related actors.
Institutional Reforms and Enforcement Tools
To ensure effective enforcement, the Financial Reporting Centre (FRC) has been granted greater operational independence. Additionally, a Director General position has been created for the Asset Recovery Agency to streamline asset seizures and prosecution efforts. Regulators such as the Central Bank of Kenya (CBK), Insurance Regulatory Authority (IRA), and Capital Markets Authority (CMA) have been empowered to directly supervise entities under their jurisdiction.
New provisions also facilitate the expedited extradition of financial criminals and enhance inter-agency cooperation on cross-border financial crime.
Rationale and Global Implications
By aligning its laws with FATF standards, Kenya aims to fast-track its removal from the grey list—a designation that deters foreign direct investment, raises transaction costs, and places financial institutions under greater scrutiny from international partners.
“Kenya cannot afford to be seen as a hub for financial crime,” noted Treasury Cabinet Secretary Njuguna Ndung’u. “These laws are a strong signal that we are serious about restoring our reputation.”
Public and Expert Concerns Remain
Despite the sweeping reforms, concerns remain about enforcement. Civil society and transparency advocates have pointed out that past AML frameworks often failed due to weak prosecution, political interference, and regulatory capture.
“There is a big difference between having the law and applying it equally to all,” said Irene Mutua, a Nairobi-based governance analyst. “What we need now is political will and institutional independence.”
Looking Ahead
With these new laws, Kenya is poised to undergo evaluation by FATF in the coming months. The effectiveness of these reforms will likely determine whether the country is removed from the grey list or continues to face international pressure.
If implemented fully, the legislation could mark a turning point in Kenya’s financial governance—ushering in greater transparency, investor confidence, and resilience against organized crime.