🇰🇪 Kenya

Kenya: VASP Act 2025 signed into law October 2025. Draft VASP Regulations 2026 published March 2026 (comment period until April 10, 2026). Dual-regulator model: CBK (payments/stablecoins) and CMA (exchanges/brokers). East Africa's largest digital asset market ($19B crypto inflows, 6M+ users).

Overview

StatusLegal
Risk Score38/100 (Moderate Risk)
Regionafrica east
CurrencyKES
Adoption Rank#5

Tax

Capital Gains (Personal)3% Digital Asset Tax (DAT) on transfer or exchange of digital assets (Finance Act 2023)
Capital Gains (Corporate)30% corporate income tax; 3% DAT on digital asset transfers
VAT on CryptoNo
Staking TaxNo specific guidance; may be subject to income tax
Airdrop TaxNo specific guidance

Kenya introduced a 3% Digital Asset Tax (DAT) under the Finance Act 2023, applicable to the gross value of digital asset transfers. The DAT applies to both residents and non-residents exchanging or transferring digital assets through a platform registered in Kenya. This is one of the first crypto-specific taxes in Africa.

Licensing

RequiredYes
RegulatorCBK / CMA
FrameworkVASP Act 2025 + Draft VASP Regulations 2026
Easemedium
Cost$10,000 - $100,000

Draft regulations propose min capitalization: KES 500M (~$3.86M) for stablecoin issuers. Industry pushback on high thresholds. Final rules expected after April 2026 comment period.

DeFi

Status: Unclear

CMA has not issued DeFi-specific regulation. DeFi usage is growing in Kenya but no specific framework addresses decentralized protocols.

Stablecoins

Status: no_rules

No stablecoin-specific framework. The CBK is exploring a CBDC (digital Kenyan shilling) which may influence future stablecoin policy.

NFTs

Status: no_rules

No NFT-specific regulation. Kenya has a growing digital art and collectibles scene.

Mining

LegalYes
Electricity$0.155/kWh
Renewable87%
Infrastructurefair

Mining is legal but restricted due to high electricity costs and regulatory oversight. Kenya benefits from a high share of renewable energy, mainly hydro and geothermal, which supports sustainable mining operations.

Geopolitics

Stabilitymoderate
SanctionsNo
Corruption Index32/100
Banking Accessmoderate

Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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