Overview

• Lawmakers approved the Virtual Asset Service Providers Bill last week, and it now awaits presidential assent from William Ruto before taking effect.
• The framework assigns the central bank to license stablecoin and other virtual-asset issuance, while the capital markets regulator licenses exchanges and trading platforms.
• Licensed providers must establish a Kenyan legal presence with a physical office and local directors, segregate client assets, maintain local bank accounts, carry insurance, meet AML/CFT rules, and accept inspection and sanctions.
• Parliament dropped plans for a standalone virtual-asset regulator in favor of coordinated oversight by the CBK and CMA, as the Finance Act 2025 shifted from a 3% digital-asset tax to a 10% excise on platform fees.
• Industry reports also highlight regional shifts, with Uganda piloting a CBDC and South African payment networks enabling roughly 650,000 merchants to accept Bitcoin via the Lightning Network.