How is crypto taxed in Kenya?

Crypto is taxed in Kenya, but the main crypto-specific tax now falls on platforms rather than traders. The 3% digital asset tax was scrapped in July 2025 and replaced with a 10% excise duty on crypto service fees. How an individual's own profits are taxed is less settled, as of October 2026.

What was Kenya's digital asset tax?

The Finance Act 2023 created a digital asset tax (DAT) under the Income Tax Act. It charged 3% on the value of a transfer or exchange of a digital asset, and platform owners and people facilitating trades had to collect it. Because it applied to the full value, critics described it as a tax on capital rather than on income, Deloitte notes.

Business Daily reported that the Kenya Revenue Authority (KRA) collected about Sh1.1 billion from the tax between September 1, 2023 and June 30, 2025. KPMG points out that it ran for over two years without supporting regulations.

What did the Finance Act 2025 change?

The Finance Act 2025 deleted the DAT and added a new excisable service, effective July 1, 2025, according to KPMG and KRA. The KRA's iTax notes show:

• DAT payment slips can only be generated for transfers dated before June 30, 2025
• "fees charged on virtual assets transactions by virtual asset providers" are now an excisable service at 10%

Techpoint Africa reports that platforms must remit the duty by the 20th of the following month. The duty applies to the fee a platform charges, not to your trade. Deloitte notes that the Excise Duty Act does not define "virtual assets" or "virtual asset service provider," which leaves room for uncertainty. Licensing of these providers is covered in is crypto legal in Kenya.

Is crypto taxed in Kenya for individuals?

There is no special crypto rule for personal gains. Kenya's capital gains tax is 15% of the net gain, according to the KRA, and it applies to property situated in Kenya, such as land, buildings and shares. The KRA's page does not mention crypto. Some private tax guides, such as Waltio, apply the 15% rate to crypto disposals and treat frequent trading as business income taxed at progressive rates. They also treat staking, mining and airdrop rewards as income when received. None of this rests on published KRA crypto guidance.

Keeping records of purchase prices and fees helps under any of these approaches, as explained in crypto cost basis. Kenya's approach also differs from Nigeria's, covered in how crypto is taxed in Nigeria.

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