Key Notes
- The bill assigns the Central Bank of Kenya authority over stablecoins and digital asset licensing under new regulations.
- Kenya ranks fourth in African crypto adoption, following Nigeria, Ethiopia, and Morocco with growing market presence.
- Stablecoins represented 43% of Sub-Saharan African crypto transactions in 2024 amid rising continental adoption.
Lawmakers in Kenya have signed off on a bill to establish a regulatory framework for cryptocurrency and other digital assets.
The new law, called the Virtual Asset Service Providers Bill, would place the Central Bank of Kenya in the role of licensing authority for stablecoins and other digital assets while the capital markets regulator would have oversight over cryptocurrency exchanges and related trading platforms.
According to a report from Reuters, the bill has passed parliament but still needs to be signed into law by Kenyan president William Ruto.
Crypto on The Rise in Kenya
Despite having no prior cryptocurrency regulations in place, Kenya has a burgeoning cryptocurrency and digital assets market . In 2023, the nation implemented a 1.5% digital assets tax (DAT) for crypto traders as part of the revamped Finance Act.
In 2024 it had the fourth highest crypto adoption rate in Africa with Nigeria, Ethiopia, and Morocco ahead, and 28th in the world, according to data from Business Insider .
As Coinspeaker reported in January 2025, the International Monetary Fund (IMF) urged Kenya to align its crypto regulations with global standards to address increasing risks tied to money laundering, terrorism financing, and consumer protection.
It appears as though Kenyan lawmakers heeded the IMF’s warning and, as of Oct. 13, stand on the precipice of enacting the nation’s first cryptocurrency laws.
Africa Embracing Cryptocurrency
Kenya’s rapid rise in adoption brings it in line with a sweeping trend throughout the continent, especially in eastern Africa, where cryptocurrency has become the citizen standard for cross border remittances and international transactions.
Stablecoins accounted for about 43% of all cryptocurrency transactions in Sub-Saharan Africa in 2024. Meanwhile, in South Africa, Altvest Capital became the first publicly listed African company to adopt Bitcoin BTC $114 582 24h volatility: 0.1% Market cap: $2.28 T Vol. 24h: $82.22 B as a treasury asset in May 2025.
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