Is crypto legal in Kenya? Rules & regulation (2026)

Crypto is regulated in Kenya.

Crypto is legal in Kenya and, since 4 November 2025, is governed by the Virtual Asset Service Providers Act, 2025, which established Kenya's first dedicated licensing regime for virtual assets and split supervision between the CBK (payments, custodial wallets, stablecoin issuers) and the CMA (exchanges, brokers, token offerings, tokenisation platforms). The National Treasury's Draft VASP Regulations, 2026 (public consultation closed April 2026) set detailed capital, reserve, conduct and AML/CFT requirements; existing operators must be licensed by November 2026. Tax rules were reset from 1 July 2025 (Digital Asset Tax repealed, replaced by a 10% excise duty on VASP fees, with income/capital-gains tax and VAT continuing to apply).

Last verified 12 Jul 2026Official sources first · MethodologyCompare Kenya with other countries

Legal framework

Virtual Asset Service Providers Act, No. 20 of 2025 (in force 4 November 2025); dual oversight by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA); implementing Draft VASP Regulations, 2026 under Treasury consultation.

Status by sub-area

Stablecoins
Partial
The VASP Act 2025 brings stablecoin issuers within CBK's licensing remit, but detailed reserve, capital and redemption rules sit in the Draft VASP Regulations, 2026 which have not yet been finalised or gazetted.
Still pending: Draft VASP Regulations 2026 (reserve, capital, redemption rules) not yet finalized or gazetted
Exchanges / VASP
In force
Exchanges and other VASPs must be licensed under the VASP Act 2025; the Capital Markets Authority supervises exchanges, brokers, market-makers and tokenisation platforms, with existing operators required to become licensed by November 2026.
Token Offerings
In force
Token offerings, ICOs, STOs and RWA tokenisation are regulated by the Capital Markets Authority under the VASP Act 2025 and existing capital-markets law; the High Court has confirmed that ICOs can be treated as securities under the Capital Markets Act.
Custody
In force
Custody of client crypto is a licensable activity under the VASP Act, supervised primarily by the CBK for wallet providers, with statutory duties around segregation, safeguarding, capital adequacy, cybersecurity and audit.
DeFi
Partial
The VASP Act does not carve DeFi out: activities that hold client custody, provide market-making against clients or run a front-end offering virtual asset services from Kenya fall within scope, while pure closed-ecosystem utility tokens sit outside.
Tax
In force
From 1 July 2025 the Finance Act repealed the 3% Digital Asset Tax and introduced a 10% excise duty on VASP service fees; income tax, capital-gains tax and VAT continue to apply, and the Finance Bill 2026 proposes annual VASP reporting to the Kenya Revenue Authority.

Key points: crypto & digital assets in Kenya

Primary law in force
The Virtual Asset Service Providers Act, 2025 was assented on 15 October 2025, gazetted on 21 October 2025 and commenced on 4 November 2025, creating a mandatory licensing regime for exchanges, wallet providers, custodians, brokers, payment processors and token-offering platforms operating in or from Kenya.
taxnews.ey.com cmadvocates.com
Dual-regulator model
The Act splits supervision: CBK licenses Virtual Asset Wallet Providers, Virtual Asset Payment Processors and Virtual Asset Offering Providers dealing with stablecoin issuance, while the CMA licenses exchanges, brokers, investment advisers and tokenisation platforms.
cliffedekkerhofmeyr.com thekenyatimes.com
Draft VASP Regulations, 2026
The National Treasury published draft implementing regulations in March 2026 setting licensing categories, capital thresholds, stablecoin reserve rules, and market-integrity duties; public consultation closed on 10 April 2026 and existing operators must be licensed by November 2026.
treasury.go.ke techcabal.com
AML/CFT alignment with FATF
Licensed VASPs must implement customer due diligence, transaction monitoring, and reporting to the Financial Reporting Centre, aligning Kenya with FATF standards; the Act also empowers regulators with intervention, enforcement and blockchain-analytics powers.
dentonshhm.com en.cryptonomist.ch
Tax regime overhaul (July 2025)
Effective 1 July 2025 Kenya repealed the 3% Digital Asset Tax and replaced it with a 10% excise duty on fees charged by VASPs; income tax, capital-gains tax and VAT continue to apply to transactions, and the Finance Bill 2026 proposes annual VASP reporting to the KRA.
the-star.co.ke deloitte.com
Market scale and enforcement build-up
Kenya received about USD 19bn in crypto value July 2024-June 2025 (4th-largest African market) with ~6.1m users on DeFi; the CBK has begun hiring senior compliance and licensing staff in its Digital Payment Services Division ahead of go-live.
techcabal.com mfw4a.org

Timeline of decisions

1 Mar 2026Guidance · official
National Treasury publishes draft VASP Regulations for FATF alignment
The Treasury, with CBK and CMA, issued draft Virtual Asset Service Providers Regulations (with a Regulatory Impact Statement) to operationalize the 2025 Act and align Kenya with FATF Recommendation 15; licensing of VASPs cannot begin until these implementing rules are finalized.
National Treasury of Kenya
4 Nov 2025Law · official
Virtual Asset Service Providers Act, 2025 enters into force
The VASP Act commenced operation, creating Kenya's first licensing and supervision regime for crypto exchanges, custodians, brokers, payment processors and stablecoin issuers; existing operators were given until 4 November 2026 to comply, and CBK confirmed commencement via public notice.
Central Bank of Kenya
15 Oct 2025Law · official
President assents to the Virtual Asset Service Providers Act, 2025
Kenya's landmark crypto law was signed into law, splitting oversight between the CBK (wallets, payment processors, stablecoins) and the Capital Markets Authority (exchanges, brokers, tokenization), and embedding virtual assets in the AML/CFT framework.
Kenya Law
1 Jul 2025Law
Finance Act 2025 repeals 3% Digital Asset Tax, introduces 10% excise duty
Kenya scrapped the unpopular 3% gross-value Digital Asset Tax and replaced it with a 10% excise duty on fees and commissions charged by crypto platforms, shifting the tax burden from traders to service providers while income/capital gains tax still applies.
EY
1 Dec 2024Guidance
Treasury unveils Draft National Policy on Virtual Assets and VASP Bill
The National Treasury released a draft national policy on virtual assets and VASPs together with the Virtual Asset Service Providers Bill, formally marking Kenya's pivot from caution toward a comprehensive licensing framework.
Baker McKenzie
29 Oct 2024Decision
Supreme Court reinstates Finance Act 2023, upholding 3% Digital Asset Tax
Kenya's Supreme Court overturned a Court of Appeal ruling that had voided the Finance Act 2023, validating the 3% Digital Asset Tax on crypto transactions and allowing the government to enforce it.
Mariblock
1 Nov 2023Guidance · official
Treasury directs creation of a comprehensive crypto regulatory framework
The National Treasury directed development of a dedicated regulatory framework for virtual assets, leading to a multi-agency Technical Working Group and IMF technical assistance aimed at implementing FATF Recommendation 15.
IMF
1 Sept 2023Law
3% Digital Asset Tax takes effect under Finance Act 2023
Kenya began taxing crypto, imposing a 3% levy on the transfer or exchange value of digital assets payable to the KRA regardless of profit, the country's first direct taxation of cryptocurrency.
Citizen Digital
2 Aug 2023Enforcement
Government suspends Worldcoin over data, security and financial concerns
Kenya's Ministry of Interior suspended Worldcoin's iris-scanning crypto enrollment pending investigations into data protection, security and financial-sector risks, triggering multi-agency probes into the project's legality.
CoinDesk
10 Feb 2022Guidance · official
CBK issues Discussion Paper on a Central Bank Digital Currency
The Central Bank of Kenya published a discussion paper exploring the potential applicability of a CBDC, opening public consultation as part of its review of digital-money innovation.
Central Bank of Kenya
14 Dec 2015Decision · official
High Court declines to restore BitPesa/Lipisha access to M-Pesa
In Lipisha Consortium & BitPesa v Safaricom, the High Court refused interim relief after Safaricom cut off the firms over unregulated bitcoin transfers, an early judicial signal that crypto businesses lacked regulatory approval to use Kenya's payment rails.
Kenya Law
1 Dec 2015Guidance · official
CBK warns public against Bitcoin and virtual currencies
The Central Bank of Kenya issued a public notice cautioning that Bitcoin and similar virtual currencies are not legal tender, are unregulated and carry no consumer protection, and (via Circular No. 14 of 2015) directed banks not to deal with virtual-currency businesses, Kenya's foundational regulatory stance.
Central Bank of Kenya

Sources

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 12 Jul 2026. Methodology & how to cite · State of Technology Regulation 2026

Legal framework

Status by sub-area

Key points: crypto & digital assets in Kenya

01Primary law in force

02Dual-regulator model

03Draft VASP Regulations, 2026

04AML/CFT alignment with FATF

05Tax regime overhaul (July 2025)

06Market scale and enforcement build-up

Timeline of decisions

Sources

Primary law in force

Dual-regulator model

Draft VASP Regulations, 2026

AML/CFT alignment with FATF

Tax regime overhaul (July 2025)

Market scale and enforcement build-up