President Ruto Enacts Key Legislation To Combat Money Laundering & Regulate Insurance Sector

The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, sponsored by National Assembly Majority Leader Kimani Ichung’wah, is designed to seal critical gaps that have facilitated money laundering and illicit financial flows, particularly through property transactions and the use of shell companies.

This comprehensive bill amends ten existing Acts of Parliament to address technical compliance deficiencies previously identified by key international bodies, including the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF) on anti-money laundering, combating terrorism financing, and combating proliferation financing.

The amended Acts include:

• The Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A)
• Prevention of Terrorism Act (Cap. 59B)
• Betting, Lotteries and Gaming Act (Cap. 131)
• Retirement Benefits Act (Cap. 197)
• Mining Act (Cap. 306)
• Sacco Societies Act (Cap. 490B)
• Accountants Act (Cap. 531)
• Estate Agents Act (Cap. 533)
• Certified Public Secretaries of Kenya Act (Cap. 534)
• Public Benefits Organizations Act (No. 18 of 2013)

Kenya was notably grey-listed in 2024 by the FATF, the global money laundering and terrorist financing watchdog, due to a perceived lack of a clear strategy on the prosecution of money laundering offenses. The FATF had specifically tasked Kenya with ensuring more effective use of financial intelligence information and enhancing the inspection of non-governmental organizations (NGOs) and not-for-profit organizations to prevent their misuse as conduits for illicit funds. This new legislation directly addresses these international requirements.

Insurance Professionals Bill to Elevate Sector Standards

President Ruto also assented to the Insurance Professionals Bill (National Assembly Bills No. 13 of 2024). Sponsored by Molo MP Kuria Kimani, who chairs the National Assembly Finance Committee, this law aims to streamline the regulation of professionals within the insurance sector. Its provisions are intended to enhance service standards, promote professionalism, and address concerns regarding professional misconduct across the industry.

The Bill mandates the Insurance Institute of Kenya (IIK), the umbrella body for insurance professionals in Kenya, as the overall professional organ responsible for regulating professional conduct and maintaining service standards.

Key provisions of this new law include:

• Establishment of the Insurance Professionals Examinations Board, tasked with conducting examinations for aspiring insurance professionals.
• Creation of a Disciplinary Committee to hear all cases of professional misconduct among insurance professionals. This committee will present its findings and recommendations to the Registration Committee of the IIK for appropriate action.

These legislative signings underscore the government’s commitment to strengthening Kenya’s financial oversight mechanisms and fostering greater integrity and accountability in key professional sectors.