Kenya Revenue Authority collects Sh10 billion from cryptocurrency traders for the first time

The Kenya Revenue Authority (KRA) has collected Sh10 billion from cryptocurrency traders for the first time during the financial year ending June 2024. KRA Chairman Anthony Mwaura announced this development at the annual Taxpayers' Day celebration at State House in Nairobi on November 1, 2024.

As cryptocurrency adoption grows in Kenya, with an estimated four million users, the government is taking steps to establish regulatory measures for the sector. A multi-agency working group is being formed to create a framework for monitoring and taxing crypto transactions, addressing issues such as money laundering and consumer protection.

In Kenya, cryptocurrencies are taxed at a rate of 3% on each transaction, which includes buying, selling, and transferring digital assets. This tax was implemented as part of the Finance Act of 2023 and is applicable regardless of whether the transaction results in a gain or loss, with the responsibility for tax collection falling on intermediaries such as cryptocurrency exchanges.