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Kenya

Africa · Developing

Kenya is East Africa's digital asset bellwether. The VASP Bill 2025 — splitting licensing between the CMA and CBK — would convert one of the world's highest grassroots adoption rates into a supervised market. The 3% Digital Asset Tax already gives the state fiscal skin in the game.

DAI Methodology v2.1 Last updated June 2026
DAI Readiness Score™
74.2
out of 100
Regulatory status

Developing

Primary regulator

Capital Markets Authority (CMA) · Central Bank of Kenya (CBK)

Licensing requirements

VASP Bill 2025 progressing through Parliament; CMA running regulatory sandbox for digital asset firms.

AML requirements

POCAMLA obligations extended to VASPs via Finance Act 2023. STR filings to FRC mandatory.

Travel Rule status

Partial — Draft guidance aligns with FATF R.16; thresholds under consultation.

Tax treatment

3% Digital Asset Tax on gross transfer value (Finance Act 2023).

Consumer protection

CBK public warnings; CMA investor-alerts regime applied to token offerings.

Key risks
  • VASP Bill timing risk — supervision lags adoption until enactment
  • Dual-regulator perimeter (CMA/CBK) could fragment
  • 3% gross tax pushes volume to offshore venues
Key legislation
2023
Finance Act 2023

Introduces 3% Digital Asset Tax; extends AML to VASPs.

2025
VASP Bill

Proposes licensing regime split between CMA and CBK.

Recent enforcement actions
2025-09
CMA investor alert against unlicensed token scheme
Public warning
2024-11
FRC compliance directive to remittance VASPs
Remediation orders
Recent developments
2026-05-19
CMA opens second sandbox cohort

Five tokenised-asset and stablecoin pilots admitted.

2026-03-08
Treasury consults on stablecoin rules

30-day consultation on naira-shilling-style fiat-referenced tokens.

Regulatory timeline
  1. 2023

    Finance Act — 3% Digital Asset Tax; AML extended to VASPs

  2. 2024

    CMA sandbox first cohort

  3. 2025

    VASP Bill introduced in Parliament

  4. 2026

    Second sandbox cohort; stablecoin consultation

Sources:Finance Act 2023 (Kenya) · VASP Bill 2025 · CMA sandbox notices
Professional disclaimerGlobal Asset Guide intelligence is provided for informational purposes only and does not constitute legal, tax, investment, or compliance advice. Regulatory positions change frequently; verify all material with primary sources and qualified counsel before relying on it for licensing, supervisory, or compliance decisions.