Anti-money laundering bill seeks stricter oversight on NGOs, saccos
Kenya’s anti-money laundering measures came under international scrutiny in February 2023, when the country was grey-listed by the Financial Action Task Force (FATF) for failing to meet global compliance standards.
The government has proposed a law that will tighten oversight on the finances of civil society organisations, betting firms, and financial entities in an effort to curb money laundering and terrorism financing.
The Anti-Money Laundering and Countering Terrorism Financing Laws (Amendment) Bill, 2025, seeks to grant the Public Benefits Regulatory Authority powers to monitor and report NGO finances to the government.
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The bill, sponsored by Majority Leader Kimani Ichung’wah, will bring several business sectors under increased scrutiny, including saccos, estate agents, accountants, and those dealing in precious minerals.
Betting firms, retirement benefit schemes, and jewellery dealers will also be monitored under the proposed legislation.
The regulator will assess NGOs that are at risk of terrorism financing and conduct periodic reviews to prevent financial abuse.
“The bill seeks to allow the public benefits regulatory authority to oversee and monitor public benefits organisations that are at risk of terrorism financing in the country,” Ichung’wah said in the bill’s memo.
The move follows increased government focus on NGOs after the June 2024 protests against tax proposals.
Some organisations, including the US’s Ford Foundation, were accused of funding the demonstrations that saw protesters storm Parliament.
At the time, state officials warned of sanctions against NGOs and their financiers.
Over the years, several organisations have faced government crackdowns. The Kalonzo Musyoka Foundation had its accounts frozen for alleged financial irregularities, while the Evans Kidero Foundation lost its operating license over claims of unexplained funds.
In 2017, the Kenya Human Rights Commission and Africog were accused of operating illegal bank accounts and were raided by state agencies.
Kenya’s anti-money laundering measures came under international scrutiny in February 2023, when the country was grey-listed by the Financial Action Task Force (FATF) for failing to meet global compliance standards.
The grey listing means Kenya must strengthen its enforcement and regulatory frameworks to avoid further economic consequences.
“The bill seeks to address the technical compliance deficiencies identified arising from the Eastern and Southern Africa Anti-Money Laundering Group re-rating and review by FATF,” Ichung’wah explained.
If the law is passed, individuals who fail to report financial transactions to the Financial Reporting Centre could face seven years in jail or fines of up to Sh10 million. Organisations found violating the law could be fined Sh20 million.
The bill also gives the Financial Reporting Centre new powers to freeze suspected money laundering funds and enforce financial sanctions. Betting firms will undergo stricter vetting of shareholders, directors, and senior employees, with increased inspections and supervision by regulatory agencies.
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