Kenya takes a firm regulatory stance on crypto and AML laws as global scrutiny mounts and FATF pressure intensifies.
President William Ruto has signed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025 into law, reinforcing Kenya’s commitment to financial integrity amid mounting international scrutiny. The move follows Kenya’s grey-listing by FATF and the EU due to deficiencies in its AML/CFT regime.
A major focus is digital asset regulation. The proposed Virtual Asset Service Providers (VASP) Bill introduces mandatory licensing, local physical presence, KYC/AML compliance, and executive vetting for crypto platforms. This marks a pivot from Kenya’s previously hands-off stance on cryptocurrencies.
Reforms target shell companies, property transactions, politically exposed persons, and beneficial ownership transparency. While Kenya has improved compliance with 28 of FATF’s 40 recommendations, enforcement remains weak. The country scored low on 9 out of 11 FATF effectiveness outcomes.
Experts warn that legislation alone won’t suffice. Effective enforcement, inter-agency coordination, and tech-driven oversight are essential. Crypto and fintech firms must act early—aligning with new laws to remain compliant, build legitimacy, and shape Kenya’s evolving digital finance ecosystem.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
