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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 & Enforcement Agencies

Regulatory agencies for Kenya — being verified. Submit a suggestion →

Regulatory status

Developing

Source unavailable
Primary regulator

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

Source
Licensing requirements

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

Source
AML requirements

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

Source unavailable
Travel Rule status

Partial — Draft guidance aligns with FATF R.16; thresholds under consultation.

Source
Tax treatment

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

Source unavailable
Consumer protection

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

Source
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.

Source unavailable
2025
VASP Bill

Proposes licensing regime split between CMA and CBK.

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

Five tokenised-asset and stablecoin pilots admitted.

Source
2026-03-08
Treasury consults on stablecoin rules

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

Source unavailable
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

Primary Sources & Official Documents
  1. 01
    FATF Recommendations (including Recommendation 15 — new technologies)
    Financial Action Task Force · Updated periodically
    https://www.fatf-gafi.org/en/topics/fatfrecommendations.html
  2. 02
    FATF Targeted Update on Implementation of the Standards on VAs and VASPs
    Financial Action Task Force · Annual
    https://www.fatf-gafi.org/en/publications/Fatfrecommendations.html
  3. 03
    High-Risk and Other Monitored Jurisdictions (grey and black lists)
    Financial Action Task Force · Updated three times a year
    https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions.html

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Sources:Finance Act 2023 (Kenya) · VASP Bill 2025 · CMA sandbox notices
Professional disclaimerDigital Asset Intelligence content 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.