On 17 June 2025, Kenya enacted the Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Act, 2025. This legislation represents one of the most significant overhauls of Kenya’s financial crime framework in recent years, aligning the country more closely with international standards such as those set by the Financial Action Task Force (FATF).
For businesses across sectors — especially fintech, SACCOs, real estate, insurance, and forex trading — the Act introduces new obligations and sharper compliance expectations.
Key Changes Introduced by the Act
1. Expanded Scope of Regulated Entities
Traditionally, AML/CTF laws focused heavily on banks and money remittance services. The new Act now explicitly brings:
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Fintech companies
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SACCOs
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Real estate agents
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Forex dealers
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Insurers
into the category of reporting institutions. These businesses must now implement AML/CTF controls and report suspicious transactions to the Financial Reporting Centre (FRC).
2. Beneficial Ownership Transparency
Companies are now required to maintain accurate records of their beneficial owners. Shell structures or opaque ownership will not be tolerated. This aligns with Kenya’s push for corporate transparency and the fight against illicit financial flows.
3. Enhanced Supervisory Powers
The FRC has been given wider supervisory and enforcement powers, enabling more frequent inspections, investigations, and penalties for non-compliance.
4. Stricter Penalties
The Act raises the stakes for non-compliance:
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Fines of up to KES 30 million
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Longer prison terms for individuals found culpable
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Possible suspension of business licenses for repeat offenders
Why This Matters for Businesses
Compliance is no longer optional or reactive. For many businesses, this Act marks their first formal inclusion in Kenya’s AML/CTF framework.
Key risks include:
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Regulatory risk: Sanctions, license suspension, or fines.
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Reputational risk: Loss of trust from customers and partners.
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Operational risk: Disruption caused by sudden regulatory intervention.
Compliance Checklist for Businesses
- To remain compliant, businesses should:
- Implement robust KYC (Know Your Customer) and KYB (Know Your Business) frameworks.
- Appoint a dedicated compliance officer trained in AML/CTF.
- Deploy technology solutions for transaction monitoring and suspicious activity reporting.
- Regularly update and disclose beneficial ownership records.
- Train staff on AML/CTF obligations and reporting procedures.
Practical Example: Impact on Two Sectors
🔹 Real Estate: Agents handling property sales or rentals must now verify client identities, monitor high-value transactions, and report unusual dealings. Cash transactions above certain thresholds will be scrutinized.
🔹 Fintech Startups: Young firms entering the payments space must build compliance into their operations from the outset. Investors will increasingly demand proof of regulatory readiness before funding.
Our Perspective
The AML/CTF Amendment Act, 2025 marks a maturation of Kenya’s financial regulation. It signals a future where compliance is not a box-ticking exercise but a core business function.
At S.N. Nyaga & Company Advocates, we support businesses in:
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Interpreting new legal obligations
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Structuring compliance frameworks
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Training compliance officers and staff
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Conducting regulatory audits to identify risks early
📩 Need Guidance?
If you are unsure how the AML/CTF Amendment Act affects your business, contact us at info@snnyagaadvocates.co.ke or call +254 728 852448.
Together, we can help you stay compliant, protect your business, and build lasting trust with stakeholders.
