Overview

• The framework designates the Central Bank of Kenya to license stablecoin issuance while the Capital Markets Authority oversees exchanges and trading platforms.
• Licensing will require a Kenyan legal presence with a physical office and named directors, segregation of client assets, insurance cover, local bank accounts, and expanded AML/CFT compliance.
• Lawmakers scrapped plans for a standalone virtual assets regulator in favor of coordinated supervision by existing agencies, with the National Treasury retaining powers to create a separate authority later.
• Enforcement awaits subsidiary regulations that set licensing criteria, prudential standards, disclosure and IT-audit requirements, and transition timelines, so consumer-facing services remain largely unchanged for now.
• Officials say clear rules are meant to attract investment and position Kenya as a regional entry point for global firms such as Binance and Coinbase, alongside a tax shift to a 10% excise on platform fees under the Finance Act 2025.