Kenya regulates crypto under the Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025), in force since 4 November 2025, and the Virtual Asset Service Providers Regulations, 2026 (Legal Notice No. 134), gazetted on 22 July 2026. The Central Bank of Kenya and the Capital Markets Authority license providers by activity, and existing providers must comply by 4 November 2026.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | africa east |
| Currency | KES |
| Adoption Rank | #5 |
| Capital Gains (Personal) | No crypto-specific CGT rule; 15% capital gains tax applies to gains on transfer of property |
| Capital Gains (Corporate) | 30% corporate income tax; 15% capital gains tax on transfer of property |
| VAT on Crypto | No |
The 3% Digital Asset Tax was repealed by the Finance Act 2025 and replaced with a 10% excise duty on fees charged by virtual asset service providers. General income tax and 15% capital gains tax rules apply otherwise.
| Required | Yes |
| Regulator | CBK / CMA |
| Framework | Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025); Virtual Asset Service Providers Regulations, 2026 (Legal Notice No. 134 of 2026) |
| Ease | medium |
| Cost (USD) | $10,000 - $100,000 |
Licensing is split by activity between the Central Bank of Kenya and the Capital Markets Authority. Providers operating at commencement have until 4 November 2026 to obtain a licence.
CMA has issued investor warnings and begun monitoring unregistered platforms. The Financial Reporting Centre has flagged crypto-related suspicious transactions. Kenya Revenue Authority actively enforces the DAT.
| Status | Cancelled |
| Name | Kenya CBDC |
| Issuing Authority | Central Bank of Kenya |
| Model | retail |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| FATF Body | APG |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the regulatory scope of the Capital Markets Authority and require compliance with existing licensing and AML frameworks.
Status: regulated
Stablecoins are regulated under the broader VASP framework with oversight by the Capital Markets Authority to ensure market integrity and consumer protection.
Status: no_rules
No NFT-specific regulation. Kenya has a growing digital art and collectibles scene.
| Legal | No |
| Electricity Cost | $0.155/kWh |
| Renewable Energy | 87% |
| Infrastructure | fair |
Crypto mining is restricted due to high electricity costs and regulatory caution; Kenya focuses on renewable energy sources and sustainable practices.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 32/100 |
| Banking Access | moderate |
| Sanctions Program Active | No |
Risk Factors
Kenya maintains moderate political stability with ongoing reforms to improve business environment; no international sanctions apply. Internet freedom is partly free with moderate banking access for crypto firms.
Recent Political Events
Kenya regulates crypto under the Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025), in force since 4 November 2025, and the Virtual Asset Service Providers Regulations, 2026 (Legal Notice No. 134), gazetted on 22 July 2026. The Central Bank of Kenya and the Capital Markets Authority license providers by activity, and existing providers must comply by 4 November 2026.
Kenya is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-06 · Data source: Soken Crypto Legal Map
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