Kenya Writes A Crypto Rulebook—And Recasts Its Fintech Ambition For East Africa

Kenya, the birthplace of mobile money at scale, has taken the next step: it now has a formal rulebook for crypto.

In mid-October, Parliament approved the Virtual Asset Service Providers (VASP) law; President William Ruto signed soon after; the measure was gazetted in the following days.

Once the commencement notice is issued, licensing starts—and existing operators get six months to come into line.

The law splits oversight between two familiar watchdogs. The Central Bank of Kenya will handle stablecoins, custody, and payment rails.

The Capital Markets Authority will supervise exchanges, trading platforms, token offerings, and investment activity.

Only legal entities can be licensed—either Kenya-registered companies or foreign firms with the required local credentials.

Kenya Writes A Crypto Rulebook—And Recasts Its Fintech Ambition For East Africa

Covered activities include running an exchange, providing custodial wallets, broking and dealing, advisory and asset management tied to virtual assets, and issuing new tokens.

Two choices reveal the strategy. First, consumer safeguards are explicit: segregation of client assets, risk-based supervision, and strict anti-money-laundering and counter-terrorist-financing rules, plus tighter standards for marketing.

Second, the tax approach changed in 2025: Kenya repealed a blunt 3% levy on digital-asset transactions and replaced it with a 10% excise on fees charged by licensed providers, shifting the burden from users’ trades to intermediaries’ services.

The story behind the story is about channeling what already exists. Kenyans have long used digital rails for daily life and for money sent home from abroad.

Stablecoins and crypto platforms grew in that slipstream, sometimes in gray zones that made scams easier and banks wary.

Regulators had warned for years; now they are choosing to legalize, professionalize, and supervise—rather than chase activity underground.

Why this matters outside Kenya is simple. Clear rules lower operational risk for global firms, make cross-border payments more reliable, and create a template other East African regulators can adapt.

For Brazilian and other international fintechs eyeing African growth, the message is direct: you can build here—just do it by the book.

The bet is that guardrails will invite capital and talent, turning Kenya’s early lead in mobile money into a broader, safer digital-finance hub.

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