Kenya Parliament Passes Crypto Bill, Awaits Presidential Signature

Kenya’s National Assembly has passed the Virtual Asset Service Providers Bill, 2025 — a landmark law set to regulate the country’s cryptocurrency and digital asset industry for the first time.

The new legislation introduces a licensing framework for virtual asset service providers (VASPs), including crypto exchanges, wallet operators, and token issuers. All providers will be required to comply with anti-money laundering (AML) and know-your-customer (KYC) standards, as well as strict disclosure and consumer protection rules.

The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have been designated as primary regulators. Their role will include overseeing compliance, monitoring advertising practices, and ensuring cybersecurity and data transparency within the fast-growing crypto sector.

The bill also follows the government’s decision earlier this year to replace the 3% digital asset tax — previously applied to gross transaction values — with a 10% excise duty on exchange transaction fees, a move welcomed by local blockchain associations and fintech companies.

If signed by President William Ruto, Kenya will become one of Africa’s few nations with a comprehensive crypto regulatory framework, joining countries like South Africa and Nigeria in formalizing the digital asset market.

Analysts say the law could attract new investment and improve financial integrity, but warn that implementation and enforcement will determine its ultimate success.