This jurisdiction has evolving or restrictive regulations that require careful compliance. Additional licensing, reporting, or operational constraints may apply.
Kenya Cryptocurrency Regulatory Overview
Kenya's crypto regulation is in a transition phase following the enactment of the VASP Act 2025, which establishes a formal licensing framework under the joint oversight of the CMA and CBK. The punitive 3% Digital Asset Tax was repealed, replaced by a 10% excise duty on VASP service fees and a 15% Capital Gains Tax on profits. This marks a cautious move toward formal integration. Regulated by CMA and CBK.
Kenya Blockchain Compliance Requirements
Notable features: VASP Act 2025 enacted, Dual regulation by CMA/CBK, Repeal of 3% Digital Asset Tax, 10% excise duty on VASP fees
Crypto Licensing Requirements in Kenya
Licensing is mandatory for all Virtual Asset Service Providers (VASPs) under the VASP Act, 2025. The Central Bank of Kenya (CBK) licenses custodial wallets and payment processors, while the Capital Markets Authority (CMA) licenses exchanges and virtual asset offerings. Applicants must be a company limited by shares, maintain a physical office, and comply with strict AML/CTF, capital, and solvency requirements.
Cryptocurrency Tax Treatment in Kenya
The 3% Digital Asset Tax (DAT) on transaction value was repealed by the Finance Act, 2025. It was replaced with a 10% excise duty imposed on the fees charged by Virtual Asset Service Providers (VASPs) for their services.
Crypto Banking Access in Kenya
Restricted
Official Sources & Regulatory References
https://www.dentonshhm.com/en/insights/articles/2025/november/19/kenyas-crypto-leap-the-virtual-asset-service-providers-act-2025-ushers-in-a-new-regulatory-dawn, https://taxnews.ey.com/news/2025-2314-kenya-enacts-virtual-asset-service-providers-act-2025-a-new-regulatory-era, https://www.cma.or.ke/, https://www.centralbank.go.ke/, https://www.deloitte.com/ke/en/services/tax/analysis/excise-duty-meets-crypto-the-legislative-gaps-kenya-must-close.html
AML/CFT requirements may be stringent or evolving. Enhanced due diligence may be required.
Enforcement actions may be unpredictable or strict. Monitor regulatory developments closely.
Disclaimer: This information is provided for general guidance only and should not be considered legal advice. Regulations change frequently. Always consult with qualified legal professionals in the relevant jurisdiction before making business decisions.