Kenya’s Parliament opens public hearings on landmark cryptocurrency bill

Kenya's Departmental Committee on Finance and National Planning has officially launched public hearings today, the 22nd of May, on the Virtual Asset Service Providers Bill, 2025, the country’s first major legislative effort to regulate the fast-growing digital asset sector.

The bill aims to establish a legal framework for digital assets including stablecoins, wallets, exchanges, ICOs, and tokenisation platforms. It is part of the government’s push to improve tax compliance and combat money laundering and terrorism financing, amid rising crypto adoption across Kenya.

A dual regulatory model is proposed, with oversight shared between the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). The CBK would supervise wallet providers, stablecoin issuers, and crypto payment systems, while the CMA would license exchanges, brokers, and oversee ICOs and tokenisation. ICOs would require CMA approval and follow IPO-style disclosure rules to protect investors.

Tokenisation platforms, which offer fractional ownership in real-world assets, would be required to register with the CMA and explain how assets are valued, stored, and traded. While this could expand investment access, concerns remain over fraud and asset verification.

If passed, the bill could position Kenya as a regional leader in crypto regulation. According to Chainalysis, Kenya ranks among Africa’s top crypto adopters, reflecting growing public interest and market potential.

The hearings will gather input from industry players, legal experts, and the public. Lawmakers aim to balance innovation with investor protection. Committee Chair Hon. Kuria Kimani stressed the need for clear, supportive regulation, saying Kenya must not fall behind in this evolving space.