Financial Crime World

Kenya Passes Landmark Amendment to Combat Terrorism Financing and Proliferation

Strengthening Counter-Terrorism Financing Measures in Kenya

Nairobi, Kenya - In a significant move to enhance its counter-terrorism financing (CFT) measures, the Kenyan government has passed an amendment to the Prevention of Terrorism Act. This amended law aims to combat terrorism financing and proliferation by introducing new provisions to prevent and detect terrorist activities.

Key Provisions of the Amended Law

  • Introduces independent offences for Financing Terrorism (TF) and Proliferation (PF), which can now be investigated, tried, and punished separately from Money Laundering.
  • Provides financial support to a proliferation act attracts a fine of up to KES 20 million or imprisonment for up to 20 years.
  • Financing travel into another state for purposes of committing a terrorist act is now an offence punishable by a fine of up to KES 20 million or imprisonment for up to 20 years.
  • Introduces penalties for legal persons that contravene provisions of the Act, with fines of up to KES 30 million.

Impact on Anti-Terrorism Efforts

Industry experts have hailed the move as a significant step towards strengthening Kenya’s anti-terrorism efforts. According to Muniu Thoithi, Advisory Leader at PwC East Africa:

  • The expanded scope of money laundering offences to include terrorism and proliferation financing means that all sanctions and penalties against ML apply to PF and TF.
  • This will increase the mandate of reporting institutions and supervisory bodies to report instances of PF and TF.

Risk-Based Approach

The amendment places increased emphasis on risk-based approach to ML/TF/PF by financial regulators and supervisors, requiring reporting institutions to prioritize unique ML/PF/TF risks associated with their sectors.

Expert Guidance from PwC

PwC has launched a special newsletter to guide clients on the implementation of the amended law. The firm’s experts are available to provide training and support on AML/CFT compliance, risk assessments, and program reviews.

Get in Touch

For more information on how PwC can help you comply with the Act, please contact: