Vulola noted that the law strengthens Kenya’s position in the global financial architecture, especially at a time when the region is facing heightened cross-border terror threats and illicit money flows. “It’s not just about compliance; it’s about survival and sovereignty in a complex geopolitical landscape,” he said.

His remarks follow President William Ruto’s promulgation of the 2025 Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Act on Tuesday. The new legislation aims to close legal loopholes that have allowed illicit financial flows to thrive, particularly through the real estate sector and shell companies.

The reforms were accelerated after Kenya was placed on the Financial Action Task Force “grey list”, a designation that signals strategic deficiencies in combating money laundering and terrorism financing. The listing has raised concerns among investors and development partners, prompting urgent government action.

According to the Kenyan government, the amended law enhances transparency, strengthens regulatory oversight, and introduces tougher penalties for non-compliance, key steps towards regaining international confidence and improving national financial integrity.

The law’s passage is expected to have wider implications beyond Kenya’s borders, with regional experts warning that weak financial regulations in one country can pose security risks to neighbours. Vulola added, “By tightening its laws, Kenya sets a standard that other African states under similar pressure should follow.”

The government says implementation will begin immediately, with targeted reviews of high-risk sectors underway.

--ChannelAfrica--