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Jurisdiction · In force

Kenya

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.

Last verified against the primary source on

Regime
Virtual Asset Service Providers Act, 2025 + Virtual Asset Service Providers Regulations, 2026
Status
In force (Act commenced November 4, 2025); implementing regulations gazetted July 24, 2026 as Legal Notice No. 134 of 2026, opening licensing
Scope
VASPs including exchanges, wallet providers, brokers, tokenization platforms and stablecoin issuers; dual CBK and CMA supervision

The state of play

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.

Frameworks

FrameworkStatusDateNote
Virtual Asset Service Providers Act, 2025In force 4 November 2025Gazetted 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 2026National 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 2026Kenya 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 VASPsIn force 1 September 2023Brings 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 2023Introduced a digital asset tax on transfers of digital assets, subsequently amended; administered by the Kenya Revenue Authority.

Products issued under this regime

  • Virtual-asset-to-mobile-money conversion services on M-Pesa rails
  • Kotani Pay stablecoin settlement and off-ramp infrastructure
  • Yellow Card retail stablecoin trading and remittances

Market participants

  • Kotani Pay
  • Yellow Card
  • Busha
  • Binance (Kenya users)
  • Luno
  • HoneyCoin
  • Fonbnk
  • Safaricom (M-Pesa rails)
  • Blockchain Association of Kenya members

On the record

Every development we have evidenced under Kenya, newest first.

Full record →

Tether and the Nairobi Securities Exchange sign a tokenization MoU

Tether and the Nairobi Securities Exchange announced a memorandum of understanding on 28 July 2026 covering investor education, blockchain-based infrastructure for securities tokenization and instant settlement, streamlined anti-money-laundering and know-your-customer onboarding under Kenyan rules, and asset tokenization on Tether's Hadron platform, with what the release calls potential integration of USDT as a settlement layer. The memorandum binds neither party to build anything and names no timetable, pilot or regulatory approval.

Market Kenya EquitiesStablecoins Tether: Tether Signs MoU with the Nairobi Securities Exchange to Explore Digital Assets Use Cases, Tokenization, Blockchain Technology, and Digital Asset Education in Africa ↗

Quidax extends its stablecoin corridors to 21 countries

Quidax said on 28 July 2026 that its stablecoin payment infrastructure now reaches more than 21 countries and 14 currencies, with corridors across nine African markets including Nigeria, Ghana, Kenya, South Africa and Côte d'Ivoire alongside destinations such as the United Kingdom, the United States, Canada, China and the United Arab Emirates. USDT, XAUT and USAT are among the supported stablecoins. The company holds an approval-in-principle as a digital assets exchange from Nigeria's Securities and Exchange Commission rather than a full registration.

Product launch Nigeria Ghana Kenya South Africa Stablecoins Quidax: Nigeria's First SEC-Licensed Exchange, Quidax, Expands Stablecoin Infrastructure to Over 21 Countries ↗

Kenya's Virtual Asset Service Providers Act assented to

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.

Regulatory Kenya Kenya Law: Virtual Asset Service Providers Act, 2025 ↗

Kenya's digital asset tax takes effect

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.

Regulatory Kenya Kenya Gazette Supplement No. 97, Finance Act 2023 (Act No. 4 of 2023), via Kenya Revenue Authority ↗

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