New Anti-Money Laundering Law in Kenya 2025: What It Means for Business, Compliance, and Why KYC/KYB Just Got Serious

On June 17, 2025, President William Ruto signed the Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Bill into law. This was a major move to tighten Kenya’s grip on illicit finance and boost its global reputation.

Here’s what changed, why it matters for businesses, and how tools like KYC/KYB verification will become part of daily operations.

What’s in the new anti-money laundering law?

The Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Amendment Act introduces tough new measures targeting money laundering channels, shell companies, and property transactions.

Why now?

This reform comes shortly after Kenya was added to the European Commission’s list of high-risk jurisdictions, placing the country under tighter global scrutiny for weaknesses in anti-money laundering systems.

The government is now moving fast to restore confidence, attract responsible investment, and show alignment with Financial Action Task Force (FATF) standards.

Summary of Kenya Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Act, 2025 : What the New Anti-Money Laundering Law Means

The Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Act, 2025 introduces sweeping changes to how financial crime is monitored and prosecuted in Kenya. Key takeaways from the new law include:

  • Expanded Scope: More sectors—especially insurance, real estate, fintech, forex, and Saccos—are now subject to monitoring and compliance.

  • Real-Time Monitoring: Reporting institutions must adopt systems that can detect and flag suspicious activity as it happens.

  • Asset Seizure & Freezing Powers: Investigators can now freeze or confiscate property linked to money laundering without lengthy court delays.

  • Transparency in Ownership: Legal structures like shell companies must disclose their true (beneficial) owners.

  • Heavier Penalties: Legal and natural persons face stricter penalties, including fines of up to KES 30 million and long prison terms.

  • Enhanced Role of the FRC: The Financial Reporting Centre has broader authority to supervise institutions and enforce AML obligations.

  • Global Alignment: These updates move Kenya closer to global standards, addressing concerns raised by the FATF and European Commission.

These changes directly impact how businesses onboard customers, conduct transactions, manage risk, and maintain records. KYC and KYB systems are no longer just good practice—they’re now legal necessities.

What does this mean for your business?

Let’s keep it simple—compliance is no longer optional. Businesses must know exactly who they’re dealing with and be ready to show it.

  • If you’re onboarding clients or partners, KYC (Know Your Customer) and KYB (Know Your Business) checks must go beyond formality.

  • If you’re handling transactions, managing funds, or working in real estate, expect more audits and real-time transaction monitoring.

  • If you fail to comply? You could face blocked accounts, frozen assets, or legal action.

So where does Peleza come in?

We’re already helping businesses in Kenya stay ahead of compliance requirements. With Peleza’s KYC and KYB verification tools, you can:

  • Instantly confirm customer or business identity

  • Access global and local watchlists

  • Screen for politically exposed persons (PEPs) and adverse media

  • Monitor high-risk activities in real time

  • Automate audit logs and documentation

It’s not about ticking boxes—it’s about protecting your business, building trust, and staying clear of regulatory trouble.

Final thought

President Ruto summed it up well:

“Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity.”

If you’re doing business in Kenya, now’s the time to take compliance seriously. The new anti-money laundering law is already in effect—and it’s reshaping how financial accountability works.

Need help getting your KYC or KYB checks in order? Click here. Let’s talk.

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