How is crypto regulated in Kenya?

Crypto regulation in Kenya is built on the Virtual Asset Service Providers (VASP) Act 2025 and the VASP Regulations 2026, which make crypto businesses get a licence from either the Capital Markets Authority or the Central Bank of Kenya. Owning crypto is legal, as covered in is crypto legal in Kenya; this guide looks at who supervises the firms and what they must do.

Who regulates crypto in Kenya, the CMA or the Central Bank?

Both, depending on the service. Reporting on the Act's commencement says the CMA licenses and supervises crypto exchanges and tokenized securities platforms, and commentators add brokers and custodians, with rules on market conduct, disclosure and protecting client assets. The CBK oversees stablecoin issuance, virtual asset wallets and payment infrastructure.

The PwC summary of the 2026 Regulations adds detail. The CMA approves token offerings and tokenization and keeps a register of offering issuers. The CBK must authorise any conversion of crypto to or from foreign currency, and it supervises stablecoin reserves, custody and reporting. At commencement, the CMA said no provider had yet been licensed.

What do the Kenya VASP Regulations 2026 require?

The Treasury gazetted the Regulations on July 22, 2026. Applicants submit a business plan, fit-and-proper forms for directors and owners, proof of source of funds, and policies on risk, money laundering, cybersecurity and complaints. Licences are renewed every year. Offshore firms that solicit Kenyan customers are covered even without an office in Kenya, and there is no grandfathering for existing operators.

Minimum paid-up capital varies by licence:

• Stablecoin issuer: KSh 300 million
• Wallet provider: KSh 150 million
• Virtual asset exchange: KSh 100 million
• Broker or payment processor: KSh 10 million
• Investment advisor: nil

An exchange licence costs KSh 1 million. Boards need at least three directors, one-third of them independent. Cyber incidents must be reported within 24 hours.

What are Kenya's stablecoin and money laundering rules?

Stablecoin issuers must hold reserves at least equal to the coins in circulation, in assets such as cash, bank deposits and short-dated government securities, kept apart from their own money. At least 30% of funds received must sit in segregated trust accounts at Kenyan banks. Holders can redeem at par within two working days, and issuers may not pay interest.

Licensed providers are treated as reporting institutions for anti-money laundering purposes. They must check customers before onboarding, monitor transactions, file suspicious transaction reports and follow the crypto travel rule, which sends sender and recipient details with transfers. Records must be kept for seven years.

How does Kenya compare with crypto regulations in Africa?

Kenya chose a dedicated crypto statute with two regulators. Nigeria instead folded digital assets into its securities law under one regulator, as explained in how crypto is regulated in Nigeria. Kenya's tax treatment, including the 10% excise duty on platform fees, is in how crypto is taxed in Kenya.

Rules differ by country and change often. Check the official regulator or a qualified professional for your own situation.