Kenya Finance Bill 2026 targets crypto anonymity with new reporting rules

Kenya’s Finance Bill 2026 would require virtual asset service providers to disclose customer identities, wallet activity and transaction records to the Kenya Revenue Authority, marking a major step toward tighter tax control of the country’s digital asset market.

Kenya is moving to bring cryptocurrency trading deeper into the formal tax system through new reporting obligations proposed in the Finance Bill 2026. The bill would amend the Tax Procedures Act by introducing new provisions requiring virtual asset service providers to file annual information returns with the Kenya Revenue Authority for reportable users and controlling persons.

The proposal would significantly reduce anonymity for cryptocurrency users in Kenya. According to TechCabal, crypto exchanges and digital asset platforms would be required to provide the KRA with information such as the identities of Kenyan users, transaction histories and wallet activity. The same report notes that the bill introduces proposed Sections 6C and 6D, which would bring the crypto economy more directly into the tax reporting framework.

The measures are still at the legislative stage and have not yet become law. However, if passed, they would create a much stricter compliance environment for exchanges, trading platforms and other virtual asset service providers operating in or serving Kenya. Legal analysis by Cliffe Dekker Hofmeyr says the bill would require annual information returns, while failure to file could attract a KES 1 million penalty. False statements or omissions could lead to penalties of KES 100,000, and false statements may also carry imprisonment of up to three years.

The bill also proposes to widen Kenya’s ability to exchange crypto-related tax information with other countries. Proposed Section 6D would allow Kenya to enter into agreements for the automatic exchange of information on virtual asset transactions, including due diligence obligations, reportable users and controlling persons.

The reporting proposal comes alongside a wider regulatory push around virtual assets. In March, Kenya’s National Treasury published draft Virtual Asset Service Providers Regulations 2026, developed through a multi-agency process involving the Central Bank of Kenya and the Capital Markets Authority. The Treasury’s regulatory impact statement says the regulations are intended to operationalise the Virtual Asset Service Providers Act 2025 and create a safer, more transparent and innovative virtual asset environment in Kenya.

The government has also linked virtual asset regulation to financial integrity risks. The Treasury’s impact statement notes that unregulated VASPs can create risks related to money laundering, terrorism financing, sanctions evasion, cybercrime, fraud, consumer losses and tax evasion. It also highlights that Kenyans are increasingly adopting virtual assets because of speed, cost, cross-border use, convenience and anonymity.

For Kenya’s digital economy, the Finance Bill 2026 could become a turning point. It would give tax authorities stronger visibility over crypto activity and make platforms responsible for user-level reporting. For crypto businesses, the challenge will be to build stronger compliance, data protection and reporting systems. For users, the message is clear: crypto trading in Kenya is moving away from informal anonymity and toward a regulated, tax-visible financial environment.