News, data and analysis on tokenized assets, market design and digital economic systems.
The Virtual Asset Service Providers Act commenced in November 2025 and its implementing regulations were gazetted on July 24, 2026, opening licensing under supervision split between the Central Bank and the Capital Markets Authority.
Kenya's Virtual Asset Service Providers Act 2025, gazetted on October 21, 2025 and commenced on November 4, 2025, established the country's first comprehensive digital-asset regime, splitting supervision between the Central Bank of Kenya for stablecoin issuance, wallet provision and virtual-asset-to-fiat conversion, and the Capital Markets Authority for exchanges, token platforms and tokenization services, with mandatory local incorporation and AML/CFT compliance. The National Treasury published draft Virtual Asset Service Providers Regulations in early 2026 for public participation, with industry objecting to capital and local-presence terms. The Virtual Asset Service Providers Regulations, 2026 were then gazetted as Legal Notice No. 134 of 2026 in Kenya Gazette Supplement No. 185, dated July 22 and published on Friday July 24, 2026, so licensing applications can now begin. The regulations set governance, minimum capital, AML and cybersecurity requirements and a seven-year record-retention obligation.
| Framework | Status | Date | Note |
|---|---|---|---|
| Virtual Asset Service Providers Act, 2025 | In force | 4 November 2025 | Gazetted October 21, 2025 and commenced November 4, 2025; establishes licensing, dual CBK/CMA supervision, local incorporation, fit-and-proper tests and AML/CFT duties. |
| Draft Virtual Asset Service Providers Regulations, 2026 (public participation) | Consultation | 1 February 2026 | National Treasury draft circulated for public participation; industry submissions contested capital thresholds and local-presence requirements. |
| Virtual Asset Service Providers Regulations, 2026 (Legal Notice No. 134 of 2026) | Gazetted | 24 July 2026 | Kenya Gazette Supplement No. 185, dated July 22 and published July 24, 2026; sets licensing procedures, governance and capital requirements, AML and cybersecurity standards and a seven-year record-retention rule, opening applications. |
| Proceeds of Crime and Anti-Money Laundering Act as applied to VASPs | In force | 1 September 2023 | Brings VASPs within reporting-institution obligations, including customer due diligence and suspicious transaction reporting. |
| Digital asset tax (Finance Act 2023, as amended) | In force | 1 September 2023 | Introduced a digital asset tax on transfers of digital assets, subsequently amended; administered by the Kenya Revenue Authority. |
Every development we have evidenced under Kenya, newest first.
The Virtual Asset Service Providers Act, Act No. 20 of 2025, received assent on 15 October 2025 and commenced on 4 November 2025. It splits supervision between the Central Bank of Kenya, which takes wallet providers, payment processors and stablecoin issuance, and the Capital Markets Authority, which takes exchanges, brokers, advisers, managers and initial coin offering providers.
Section 12F of the Income Tax Act, inserted by section 10 of the Finance Act 2023, came into operation, imposing a digital asset tax at 3% of the transfer or exchange value of a digital asset. Platform owners and facilitators were made responsible for deducting the tax and remitting it within five working days, with non-resident operators required to register under a simplified regime.
Kenya gazetted the Virtual Asset Service Providers Regulations, 2026 on 24 July 2026, completing implementation of the VASP Act assented to in October 2025. The Central Bank of…
Mastercard and the African digital-asset platform Yellow Card announced a partnership on 7 May 2026 to build stablecoin-based payment and settlement rails across Eastern Europe,…
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