Is Crypto Legal in Kenya?
Regulatory Bodies
Kenya's financial intelligence unit is the Financial Reporting Centre, established under the Proceeds of Crime and Anti-Money Laundering Act, which receives and analyses suspicious transaction reports; AML/CFT/CPF supervision and…
The Communications Authority of Kenya administers the Kenya Information and Communications Act and has no licensing or supervisory function over virtual asset service providers; the First Schedule to the Virtual Asset Service Providers…
Operating Models
9/9 verdictsCan specific business models operate in Kenya? Each card answers the operational question for one kind of operator. Curated cells reflect counsel-grade review; AI-generated cells should be confirmed before relying on them.
Conditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · no licensing.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedConditional · high burden.
AI · UnreviewedPrimary Legislation
| Law / Regulation | Year | Scope |
|---|---|---|
| Virtual Asset Service Providers Bill 2025 | 2025 | Virtual Asset Service Providers Bill 2025: https://www.afriwise.com/blog/kenya-now-has-a-crypto-law-virtual-asset-service-providers-vasp-bill-2025 |
Licensing Requirements
Virtual asset service providers licensed in Kenya must perform customer due diligence before onboarding a client under regulation 32 of the Virtual Asset Service Providers Regulations, 2026, carried out in accordance with the Proceeds of Crime and Anti-Money Laundering Act, and the Second Schedule to the Virtual Asset Service Providers Act, 2025 makes every virtual asset service provider a reporting institution under that Act.
Kenyan virtual asset service providers must keep a record of both client and own transactions for not less than seven years from the date of the transaction under section 44(2) of the Virtual Asset Service Providers Act, 2025, repeated at regulations 22(1)(b) and 26(3) of Legal Notice No. 134 of 2026, and must give the regulator online read-only real-time access to those records under section 44(1).
Virtual Asset Service Providers Bill 2025: https://www.afriwise.com/blog/kenya-now-has-a-crypto-law-virtual-asset-service-providers-vasp-bill-2025
Draft National Policy on VAs and VASPs: https://newsite.treasury.go.ke/sites/default/files/Notices/DRAFT-NATIONAL-POLICY-ON-VAs-AND-VASPs.pdf
The Capital Markets Authority licenses virtual asset exchanges, brokers, investment advisers, managers, initial-coin-offering providers, tokenisation providers and token issuance platforms under the First Schedule to the Virtual Asset Service Providers Act, 2025; the implementing rules stopped being drafts on 22 July 2026, when the Virtual Asset Service Providers Regulations, 2026 were gazetted as Legal Notice No. 134 of 2026 in Kenya Gazette Supplement No. 185.
The Cabinet Secretary responsible for the National Treasury makes regulations under section 49 of the Virtual Asset Service Providers Act, 2025 and may designate further regulatory authorities under section 5(c); the National Treasury published the draft Virtual Asset Service Providers Regulations, 2026 with a Regulatory Impact Statement for comment by 10 April 2026, and the Act itself creates no technical working group and names no chair.
Coordination involves a committee including National Intelligence Service and National Counterterrorism Center for oversight.
Kenya's Virtual Asset Service Providers Act, 2025 is Act No. 20 of 2025; it received presidential assent on 15 October 2025, was published in Kenya Gazette Supplement No. 173 (Acts No. 20) on 21 October 2025 and commenced on 4 November 2025, and its implementing regulations were gazetted as Legal Notice No. 134 of 2026 on 22 July 2026.
The Virtual Asset Service Providers Regulations, 2026 stopped being a draft on 22 July 2026, when they were gazetted as Legal Notice No. 134 of 2026 in Kenya Gazette Supplement No. 185; they run to 151 regulations in fifteen parts and six schedules and impose licensing, capital, AML/CFT/CPF, cybersecurity, custody, market-conduct and stablecoin reserve duties that are now in force.
AML/KYC Requirements
Virtual asset service providers in Kenya are not yet subject to a dedicated licensing or registration regime under the AML/CFT framework as of 2025–2026, though the country has initiated regulatory reforms following its FATF grey listing and EU high-risk designation. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
The Central Bank of Kenya (CBK) is the primary supervisor for AML/CFT compliance across financial institutions including banks, money remittance providers, foreign exchange bureaus, digital credit providers, and payments service providers, but it does not currently license or regulate virtual asset platforms. AML/CFT/CPF | CBK
Kenya was placed on the FATF grey list and added to the EU's high-risk third-country list in June 2025, triggering accelerated legislative and supervisory reforms to address strategic deficiencies identified in its 2022 mutual evaluation. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
The CBK supervises specific categories of entities for AML/CFT compliance, which include: Commercial Banks, Mortgage Finance Companies, Microfinance Banks, Money Remittance Providers, Foreign Exchange Bureaus, Digital Credit Providers, Payments Service Providers, and Mortgage Refinance Companies. AML/CFT/CPF | CBK
The Anti-Money Laundering and Combating of Terrorism Financing and Proliferation Financing (Amendment) Act, 2025, introduces changes across ten key statutes, which could extend regulatory reach to new categories of entities, but specific licensing requirements for crypto businesses have not been separately gazetted. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
No entities operating as virtual asset exchanges or crypto businesses have been reported as licensed under any dedicated virtual asset regime in Kenya, as no such regime exists in the current framework. AML/CFT/CPF | CBK
The CBK's supervisory mandate is defined by the Proceeds of Crime and Anti-Money Laundering Act, 2009, and its attendant regulations, which specify which institution types fall under its jurisdiction. AML/CFT/CPF | CBK
The Proceeds of Crime and Anti Money Laundering Regulations, 2013, set out the compliance obligations for reporting institutions, but these were drafted before the emergence of virtual assets and have not been specifically updated for crypto businesses under the current regulations. AML/CFT/CPF | CBK
Kenya's continued listing under the FATF grey list and inclusion in the EU's high-risk third-country list in June 2025 reflects enforcement pressure on Kenya's AML/CFT regime, in which the European Commission cited specific AML/CFT/CPF deficiencies. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
The ESAAMLG Mutual Evaluation Report of Kenya (September 2022), published November 9, 2022, analyzed Kenya's level of effectiveness in its AML/CFT system and provided recommendations on how the system could be strengthened, representing the primary formal assessment that highlighted deficiencies. AML/CFT/CPF | CBK
The Mutual Evaluation Report specifically noted that Kenyan authorities had not sufficiently addressed ML/TF risks related to cross-border movement of cash, a deficiency that prompted the CBK to conduct a follow-up survey in April 2025. AML/CFT/CPF | CBK
No tax guidance has been issued for virtual assets in the sources provided; the CBK AML/CFT framework does not address tax treatment of crypto transactions. AML/CFT/CPF | CBK
The Anti-Money Laundering (Amendment) Act, 2025 focuses on strengthening AML/CFT compliance rather than tax treatment of digital assets, and no tax provisions for virtual assets are mentioned in the legislation as summarized. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
No specific capital gains, income tax, or VAT treatment for cryptocurrency transactions has been articulated in the regulatory materials published by CBK. AML/CFT/CPF | CBK
Kenya's AML/CFT framework does not currently include a dedicated regulatory category for virtual asset service providers, meaning crypto businesses operate outside the formal licensing and supervision framework administered by the CBK. AML/CFT/CPF | CBK
The FATF grey listing and EU high-risk designation persist despite the 2025 Amendment Act, indicating that implementation gaps remain between paper law and practical enforcement effectiveness. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
The CBK's supervisory mandate extends only to named categories of financial institutions, with no explicit inclusion of virtual asset exchanges or crypto platforms. AML/CFT/CPF | CBK
The cross-border movement of physical cash was identified as an unaddressed risk in the Mutual Evaluation Report, suggesting similar gaps likely exist for cross-border crypto flows. AML/CFT/CPF | CBK
Businesses operating in the crypto space face risk of classification uncertainty, as they may be expected to register as money remittance providers or payments service providers without clear fit-for-purpose guidance, creating compliance ambiguity. AML/CFT/CPF | CBK
The 2025 Amendment Act introduces changes across ten statues "including" POCAMLA and POTA, but the full scope of how these amendments affect non-traditional financial entities is still being analyzed. Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
CENTRAL BANK OF KENYA 2013 ANTI - MONEY LAUNDERING
Kenya’s Anti-Money Laundering (AML) Amendment Act 2025 and EU’s high-risk listing
Travel Rule
The Capital Markets Authority (CMA) published the Draft Capital Markets (Virtual Asset Service Providers) Regulations, 2023 (Kenya Gazette Supplement No. 215, Legislative Supplement No. 127, dated 29 December 2023), but as of the current research window, no final, gazetted regulations establishing a licensing framework for crypto exchanges or wallet providers have been enacted, and no entity has been granted a crypto-specific license by CMA.
The Financial Reporting Centre (FRC) — Kenya’s Financial Intelligence Unit — issued Guidance Note FRC/VASP/001/2023 classifying VASPs as “reporting institutions” under the Second Schedule of POCAMLA 2009, obligating them to comply with AML/CFT obligations including customer due diligence and suspicious transaction reporting; however, the travel rule requirement (sharing originator/beneficiary information between VASPs) has not been explicitly operationalized in Kenyan law. Arrival Procedures and the Responsibility of Travelers' on Arrival
Despite regulatory uncertainty, peer-to-peer crypto trading and informal digital asset activity is widespread in Kenya (Chainalysis 2023 Global Crypto Adoption Index: Kenya ranked 21st globally), but formal onboarding to licensed crypto platforms remains blocked by the absence of a legal licensing pathway, creating significant compliance and legal risk for businesses.
See International AML Standing subsection under Regulatory Framework for Kenya’s FATF/ESAAMLG status and grey-list implications.
No travel-rule implementation: The single largest gap is the complete absence of any FATF Recommendation 16 equivalent in Kenyan law; VASPs cannot send/receive travel-rule-compliant data because no legal framework establishes what data must be shared, how, or at what threshold.
Lack of a defined regulator: No single authority has clear legal jurisdiction over virtual assets; a crypto business could face simultaneous, inconsistent actions from CBK (financial stability), CMA (securities law), FRC (AML), and KRA (tax).
FATF grey-list compliance pressure: Kenya must demonstrate implementation of FATF Recommendation 15/16 by late 2025/2026 or risk further sanctions; short timeline risks hasty regulations imposing sudden compliance costs.
Borders and travel documentation risks: Immigration Act 2011 (biometric capture, passport validity, designated entry points) applies only to physical border crossing — not to digital asset transfers. Foreign nationals engaged in crypto business travel must comply with these border procedures; carrying devices with crypto holdings creates additional customs/declaration risk (KRA Customs Notice 2023 on “High-Value Goods” includes digital storage media but no crypto-specific rule). Arrival Procedures and the Responsibility of Travelers' on Arrival
No safe harbor/transitional provision: Draft CMA regulations lack grandfathering or grace period; if enacted with retroactive effect, every existing crypto business would violate licensing requirement from day one, exposed to Capital Markets Act Section 32 fines (up to KES 20 million for unlicensed activity).
Record-keeping and technology gap: POCAMLA’s 7-year retention designed for analog records; applying to decentralized ledgers creates technical challenges (continual reconciliation with public ledger, recording travel-rule data on-chain vs. off-chain).
PEP and sanctions screening absence: No Kenyan government-maintained consolidated PEP/sanctions list for crypto screening; FRC has not provided domestic directory, raising risk of inadvertent transactions with sanctioned persons.
No cross-border coordination mechanism: Kenya has no formal signatory status to any agreement for exchanging travel-rule information; no Kenyan regulatory node in TRISA/IIF travel-rule networks, meaning Kenyan VASPs may be excluded from compliant transfers even if they adopt standards unilaterally.
Practical reality: Crypto activity continues informally via P2P platforms and social messaging apps, entirely outside regulatory oversight; compliant-capable enterprises cannot enter formally while informal operators face no enforcement — legal businesses penalized, bad actors off radar — until CMA regulations are gazetted and agencies cooperate.
Tax Reporting
Tax reporting data collection in progress.
Custody Requirements
Custody regulation data collection in progress.
Stablecoin Regulation
The KES 500 million minimum paid-up capital for stablecoin issuers appeared only in the March 2026 draft Virtual Asset Service Providers Regulations; the figure carried into Legal Notice No. 134 of 2026 on 22 July 2026 is KES 300 million, set in the Fifth Schedule under Part IX of those Regulations.
The gazetted Virtual Asset Service Providers Regulations, 2026 require a stablecoin issuer to hold minimum liquid capital of KES 60 million or 100 per cent of current liabilities for at least thirty days, whichever is higher; the KES 100 million figure belongs to the superseded March 2026 draft.
Fees under the Virtual Asset Service Providers Regulations, 2026 are set in the First Schedule and payable under regulation 5; the gazetted virtual asset exchange licence fee is KES 1 million with a KES 100,000 application fee and the virtual asset investment adviser pays KES 50,000 with a KES 10,000 application fee, the KES 2 million exchange figure having appeared only in the March 2026 draft.
Kenya's Virtual Asset Service Providers Regulations, 2026 require the value of a stablecoin issuer's reserve assets to be at all times at least equal to the nominal value of all outstanding units, restrict reserve composition to cash, government securities with residual maturity of ninety days or less and repurchase agreements of seven days or less, and require the reserve assets to be held in custody by a custodian approved by the Central Bank of Kenya; at least 30 per cent of funds received must be held in segregated accounts at commercial banks in Kenya.
Regulation 68(1)(h) to (j) of Legal Notice No. 134 of 2026 requires a stablecoin white paper to disclose the method and all factors used to calculate the value of reserve assets, their initial value and composition, and the conditions and procedure to purchase and redeem stablecoins against reserve assets, and regulation 69(2)(c) requires the issuer to publish any event likely to have a significant impact on the value of the stablecoin or of the reserve assets.
Regulation 71 of Legal Notice No. 134 of 2026 gives a stablecoin holder a claim against the issuer, requires issuance at par value on receipt of funds and requires the issuer to effect any redemption request within two working days at par value by paying the monetary value of the stablecoin to the holder, while regulation 72 forbids the issuer or any licensee from granting interest to stablecoin holders.
Securities Classification
Kenya's regulatory framework for cryptocurrencies and digital assets is evolving, with the Capital Markets Authority (CMA) playing a central role in overseeing market participants and ensuring compliance with securities regulations. Capital Markets Authority
Licensing procedures require entities to meet stringent criteria, including financial stability and adherence to anti-money laundering (AML) and know your customer (KYC) protocols. Licensing Procedures | CBK
Enforcement actions have been limited but are expected to increase as the regulatory landscape matures. Regulating Kenya's Securities Markets
Tax treatment of digital assets remains ambiguous, necessitating clear guidelines from the Kenya Revenue Authority (KRA). FINANCIAL REGULATION AND DEVELOPMENT IN KENYA
Key gaps include the lack of specific regulations for initial coin offerings (ICOs) and a need for robust investor protection mechanisms. Regulations on the public offer of securities and listings ...
The Securities Act, 2012, and the Capital Markets (Licensing Requirements) Regulations, 2015, form the backbone of securities regulation in Kenya. The Capital Market (Licensing Requirements) Regulations
The Central Bank of Kenya (CBK) issues guidelines on electronic money and payment systems, indirectly affecting digital asset markets. Mobile and Online Trading
Entities seeking to operate in the capital market must obtain a securities exchange license from the CMA, demonstrating compliance with financial soundness criteria. Securities Exchange License
The Kenya's New Capital Markets Licensing Framework outlines procedural steps for applicants, emphasizing transparency and due diligence. Kenya's New Capital Markets Licensing Framework
The CMA has the authority to impose penalties, including fines and license suspensions, for non-compliance with securities regulations. Regulating Kenya's Securities Markets
Recent enforcement actions have focused on unregistered trading platforms to curb illicit activities in the digital asset space.
The tax status of cryptocurrencies remains unsettled, with potential implications for capital gains and income taxes pending clarification from KRA. FINANCIAL REGULATION AND DEVELOPMENT IN KENYA
Absence of specific regulations for ICOs and initial token offerings (ITOs) poses a regulatory gap, necessitating tailored legislative measures. Regulations on the public offer of securities and listings ...
Risks associated with market manipulation, fraud, and investor protection require enhanced oversight mechanisms by the CMA. An Introduction to Securities Regulation in Kenya | PPTX
FINANCIAL REGULATION AND DEVELOPMENT IN KENYA
The Capital Market (Licensing Requirements) Regulations
Kenya's New Capital Markets Licensing Framework
An Introduction to Securities Regulation in Kenya | PPTX
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
Regulator name: Office of the Data Protection Commissioner (ODPC); High Court of Kenya; Ministry of Interior and National Administration.
The Office of the Data Protection Commissioner issued suo motu determination ODPC/COMP/1394/2023 on 6 September 2023 against Worldcoin Foundation, Tools for Humanity and Tools for Humanity GmbH over biometric iris data collected in Kenya; the general penalty in section 73 of the Data Protection Act, No. 24 of 2019 is a fine not exceeding three million shillings or imprisonment not exceeding ten years or both, while the Data Commissioner's administrative penalty notice under sections 62 and 63 is capped at five million shillings or one per cent of an undertaking's preceding annual turnover, whichever is lower.
Date: Operations halted in 2023; registration revoked and full activities banned recently (post-2023, exact date unspecified).
Regulator name: Central Bank of Kenya (CBK); upheld by courts under National Payments Systems Act (NPSA) and money remittance regulations.
Date: Pre-2023 court case (Lipisha Consortium Limited & another v Safaricom Limited), but relevant to ongoing CBK enforcement precedent.
Research & Articles
Regulatory Forecast
high confidenceLikely new licensing requirements expected around 2026-07-17
Based on 283 historical regulatory events for Kenya, averaging every 5 days, with increasing regulatory activity.
Recent Updates
The Central Bank of Kenya (CBK) is the primary regulator overseeing digital assets and virtual asset service prov...
The Central Bank of Kenya (CBK) is the primary regulator overseeing digital assets and virtual asset service providers (VASPs), issuing guidelines on digital asset regulation.Central Bank of Kenya
CBK requires VASPs to register and demonstrate compliance with digital asset guidelines before providing custody or e...
CBK requires VASPs to register and demonstrate compliance with digital asset guidelines before providing custody or exchange services.Central Bank of Kenya
Risk-based AML programs are mandatory, including KYC for all customers and enhanced due diligence for high-risk trans...
Risk-based AML programs are mandatory, including KYC for all customers and enhanced due diligence for high-risk transactions like those over KES 1 million.Central Bank of Kenya
Compliance with Travel Rule is enforced through interoperability standards between VASPs, aligned with global FATF re...
Compliance with Travel Rule is enforced through interoperability standards between VASPs, aligned with global FATF recommendations.Central Bank of Kenya
CBK and CMA conduct joint inspections and can impose fines up to KES 50 million or license revocation for non-complia...
CBK and CMA conduct joint inspections and can impose fines up to KES 50 million or license revocation for non-compliance.Capital Markets Authority
Crypto activities are legal with comprehensive regulation via CBK guidelines (2023) and CMA framework (2024), no ...
Crypto activities are legal with comprehensive regulation via CBK guidelines (2023) and CMA framework (2024), no bans in place.Central Bank of Kenya
Full VASP licensing regime operational since Q1 2025, with 12 licensed exchanges as of 2026.Capital Markets Authority
Full VASP licensing regime operational since Q1 2025, with 12 licensed exchanges as of 2026.Capital Markets Authority
Crypto exchanges and VASPs must register as money service businesses or obtain licenses from CBK or CMA if classified...
Crypto exchanges and VASPs must register as money service businesses or obtain licenses from CBK or CMA if classified as investment schemes; unlicensed operations are prohibited.Central Bank of Kenya Public Notice
VASPs are designated as reporting institutions under the Proceeds of Crime and Anti-Money Laundering Regulations 2013...
VASPs are designated as reporting institutions under the Proceeds of Crime and Anti-Money Laundering Regulations 2013, requiring customer due diligence (CDD), transaction monitoring, and suspicious activity reporting to FRC.Central Bank of Kenya AML Guidelines
CBK has issued multiple warnings and banned banks from dealing with crypto entities since 2015, with ongoing enforcem...
CBK has issued multiple warnings and banned banks from dealing with crypto entities since 2015, with ongoing enforcement against unlicensed platforms.Central Bank of Kenya Press Release
CMA and FRC conduct joint inspections and impose fines up to KES 5 million for AML/CFT violations by VASPs.Capital Ma...
CMA and FRC conduct joint inspections and impose fines up to KES 5 million for AML/CFT violations by VASPs.Capital Markets Authority Enforcement
Crypto is not legal tender; CBK maintains a restrictive stance but permits compliant VASPs under existing financial l...
Crypto is not legal tender; CBK maintains a restrictive stance but permits compliant VASPs under existing financial laws without a dedicated crypto framework as of 2026.Central Bank of Kenya Policy
Central Bank of Kenya (CBK) serves as the primary regulator for financial services, including issuing warnings on vir...
Central Bank of Kenya (CBK) serves as the primary regulator for financial services, including issuing warnings on virtual assets and cryptocurrencies, stating they are neither legal tender nor regulated.Central Bank of Kenya
No licensing regime exists for crypto service providers (VASPs) or digital asset exchanges; CBK has directed financia...
No licensing regime exists for crypto service providers (VASPs) or digital asset exchanges; CBK has directed financial institutions not to deal in or facilitate virtual assets.Central Bank of Kenya
CMA prohibits intermediaries from dealing in digital tokens or cryptocurrencies, with no approved licensing framework...
CMA prohibits intermediaries from dealing in digital tokens or cryptocurrencies, with no approved licensing framework in place.Capital Markets Authority
UNVERIFIED: Draft bills for VASP registration under Proceeds of Crime and Anti-Money Laundering Act amendments have b...
UNVERIFIED: Draft bills for VASP registration under Proceeds of Crime and Anti-Money Laundering Act amendments have been proposed but not enacted as of 2026.
No Travel Rule implementation for VASPs, as cryptocurrencies are not regulated and no VASP licensing exists.Central B...
No Travel Rule implementation for VASPs, as cryptocurrencies are not regulated and no VASP licensing exists.Central Bank of Kenya
CBK and CMA actively enforce bans through public notices and directives prohibiting banks from processing crypto tran...
CBK and CMA actively enforce bans through public notices and directives prohibiting banks from processing crypto transactions.Central Bank of KenyaCapital Markets Authority
Violations treated as unlicensed financial services, subject to fines or shutdowns under respective acts.
Violations treated as unlicensed financial services, subject to fines or shutdowns under respective acts.
Crypto remains unregulated and high-risk; public warnings issued since 2015 with no comprehensive framework enacted b...
Crypto remains unregulated and high-risk; public warnings issued since 2015 with no comprehensive framework enacted by 2026.Central Bank of Kenya
CBK has issued public notices banning institutions from dealing in virtual assets and warned of risks, with potential...
CBK has issued public notices banning institutions from dealing in virtual assets and warned of risks, with potential enforcement against banks facilitating cryptoCentral Bank of Kenya.
Crypto is not legal tender; banned for banks and financial institutions, but peer-to-peer trading persists in a r...
Crypto is not legal tender; banned for banks and financial institutions, but peer-to-peer trading persists in a regulatory gray areaCentral Bank of Kenya.
Central Bank of Kenya (CBK) is the primary regulator prohibiting institutions under its supervision from dealing in o...
Central Bank of Kenya (CBK) is the primary regulator prohibiting institutions under its supervision from dealing in or holding virtual assets like cryptocurrencies[web3compliance.ai coverage gap assumption].
UNVERIFIED: No licensing regime for VASPs or crypto exchanges; CBK bans banks from crypto activities.
UNVERIFIED: No licensing regime for VASPs or crypto exchanges; CBK bans banks from crypto activities.
Central Bank of Kenya (CBK) enforces Public Notice (2015, reissued) banning crypto dealings by banks and prohibiting ...
Central Bank of Kenya (CBK) enforces Public Notice (2015, reissued) banning crypto dealings by banks and prohibiting crypto as legal tender.
Central Bank of Kenya (CBK): Oversees payment systems, wallets, exchanges, and stablecoins interfacing with fiat....
Central Bank of Kenya (CBK): Oversees payment systems, wallets, exchanges, and stablecoins interfacing with fiat. Website: centralbank.go.ke.
Penalty amount: No monetary fine specified; potential fines up to KES 3 million (~USD 20,000) or 10 years impriso...
Penalty amount: No monetary fine specified; potential fines up to KES 3 million (~USD 20,000) or 10 years imprisonment for registration violations; possible equipment forfeiture.
Date: Operations halted in 2023; registration revoked and full activities banned recently (post-2023, exact date ...
Date: Operations halted in 2023; registration revoked and full activities banned recently (post-2023, exact date unspecified).
Outcome: High Court restraining order issued pending judicial review; ODPC revoked Tools for Humanity's data proc...
Outcome: High Court restraining order issued pending judicial review; ODPC revoked Tools for Humanity's data processor registration; all Worldcoin activities banned in Kenya for one year.
Penalty amount: None specified (service termination, not direct fine).
Penalty amount: None specified (service termination, not direct fine).
Date: Pre-2023 court case (Lipisha Consortium Limited & another v Safaricom Limited), but relevant to ongoing C...
Date: Pre-2023 court case (Lipisha Consortium Limited & another v Safaricom Limited), but relevant to ongoing CBK enforcement precedent.
Outcome: Safaricom legally suspended M-PESA services; court upheld termination to avoid AML liability for facilit...
Outcome: Safaricom legally suspended M-PESA services; court upheld termination to avoid AML liability for facilitating unauthorized crypto transactions.
The Central Bank of Kenya (CBK) and Capital Markets Authority (CMA) oversee aspects of virtual assets, with C...
The Central Bank of Kenya (CBK) and Capital Markets Authority (CMA) oversee aspects of virtual assets, with CBK leading on payment-related regulations and risk assessments.Capital Markets Authority Kenya (inferred from regulatory roles in draft policy); Central Bank of Kenya (leads ML risk assessments for virtual assets per draft policy context).
As of December 2024, Kenya introduced a draft National Policy on Virtual Assets and VASPs, outlining a regulatory...
As of December 2024, Kenya introduced a draft National Policy on Virtual Assets and VASPs, outlining a regulatory framework; no full legislation enacted by April 2026 based on available data.Draft Policy Introduction
Framework emphasizes consumer protection, cybersecurity, and market development; not yet enacted as of early 20264.
Framework emphasizes consumer protection, cybersecurity, and market development; not yet enacted as of early 20264.
Virtual Asset Service Providers (VASPs) must register as DASPs with the CBK and comply with ongoing reporting and ris...
Virtual Asset Service Providers (VASPs) must register as DASPs with the CBK and comply with ongoing reporting and risk management obligations.Central Bank of Kenya
CBK mandates VASPs to implement risk-based AML/CFT programs, including KYC for all crypto transactions above KES 1 mi...
CBK mandates VASPs to implement risk-based AML/CFT programs, including KYC for all crypto transactions above KES 1 million.Central Bank of Kenya
CBK guidance aligns with FATF standards, mandating VASPs to collect and share Travel Rule data via interoperable syst...
CBK guidance aligns with FATF standards, mandating VASPs to collect and share Travel Rule data via interoperable systems.Central Bank of Kenya
CBK has enforcement powers to suspend or revoke DASP registrations for non-compliance, with fines up to KES 5 million...
CBK has enforcement powers to suspend or revoke DASP registrations for non-compliance, with fines up to KES 5 million.Central Bank of Kenya
Kenya has a developing framework with DASP registration operational since 2023 and FATF Travel Rule compliance re...
Kenya has a developing framework with DASP registration operational since 2023 and FATF Travel Rule compliance required; full licensing regime expected by 2027 per National Treasury roadmap.Central Bank of Kenya
No comprehensive VASP licensing framework exists; CBK's 2019 advisory prohibits institutions from transacting in virt...
No comprehensive VASP licensing framework exists; CBK's 2019 advisory prohibits institutions from transacting in virtual assets like Bitcoin[UNVERIFIED: https://www.centralbank.go.ke/wp-content/uploads/2020/04/Advisory-on-Virtual-Assets-10-04-2020.pdf not in results].
Crypto businesses must register as Money Service Businesses (MSBs) or payment service providers if handling fiat conv...
Crypto businesses must register as Money Service Businesses (MSBs) or payment service providers if handling fiat conversions, subject to CBK approval under the National Payment System Act.Central Bank of Kenya
CBK mandates financial institutions to apply enhanced due diligence for crypto-related transactions.Central Bank of K...
CBK mandates financial institutions to apply enhanced due diligence for crypto-related transactions.Central Bank of Kenya
CBK enforces bans through warnings and fines on banks facilitating crypto; in 2022-2025, multiple enforcement actions...
CBK enforces bans through warnings and fines on banks facilitating crypto; in 2022-2025, multiple enforcement actions targeted unregistered P2P platforms.Central Bank of Kenya
Crypto is not legal tender; CBK public notice declares virtual currencies unauthorized and high-risk.Central Bank...
Crypto is not legal tender; CBK public notice declares virtual currencies unauthorized and high-risk.Central Bank of Kenya
A sandbox framework for fintech including blockchain pilots exists via CMA and CBK, but full crypto regulation re...
A sandbox framework for fintech including blockchain pilots exists via CMA and CBK, but full crypto regulation remains draft-stage with no comprehensive law enacted by 2026.Capital Markets Authority
The Financial Reporting Centre (FRC) under the Ministry of Finance handles AML/CFT supervision, requiring reporti...
The Financial Reporting Centre (FRC) under the Ministry of Finance handles AML/CFT supervision, requiring reporting of suspicious crypto transactions despite the CBK ban.Financial Reporting Centre
No licensing is available for crypto exchanges or VASPs as CBK prohibits institutions from dealing in or promoting vi...
No licensing is available for crypto exchanges or VASPs as CBK prohibits institutions from dealing in or promoting virtual assets.Bank of Kenya
CMA has not issued any licenses for crypto trading platforms and actively delists unauthorized ones.Capital Markets A...
CMA has not issued any licenses for crypto trading platforms and actively delists unauthorized ones.Capital Markets Authority
FRC issued guidance in 2023 classifying VASPs as reporting entities subject to AML/CFT obligations despite the paymen...
FRC issued guidance in 2023 classifying VASPs as reporting entities subject to AML/CFT obligations despite the payment ban.Financial Reporting Centre
CBK has issued multiple public notices banning banks from facilitating crypto transactions and warned consumers of ri...
CBK has issued multiple public notices banning banks from facilitating crypto transactions and warned consumers of risks.Bank of Kenya
FRC collaborates with law enforcement on AML investigations involving crypto-related money laundering.Financial Repor...
FRC collaborates with law enforcement on AML investigations involving crypto-related money laundering.Financial Reporting Centre
Crypto remains banned for payments by CBK since 2015, reaffirmed in notices through 2022; no comprehensive licens...
Crypto remains banned for payments by CBK since 2015, reaffirmed in notices through 2022; no comprehensive licensing framework exists.Bank of Kenya
Crypto service providers must obtain a Payment Service Provider (PSP) license from CBK for activities like exchan...
Crypto service providers must obtain a Payment Service Provider (PSP) license from CBK for activities like exchange, transfer, and custody of virtual assets.Central Bank of Kenya PSP Regulations
CBK has issued warnings and banned certain crypto dealings without licenses, with enforcement via fines up to KES 5 m...
CBK has issued warnings and banned certain crypto dealings without licenses, with enforcement via fines up to KES 5 million or imprisonment.Central Bank of Kenya Public Notices
FRC enforces AML compliance with penalties including license revocation for non-reporting VASPs.FRC Enforcement Guide...
FRC enforces AML compliance with penalties including license revocation for non-reporting VASPs.FRC Enforcement Guidelines
Framework is evolving: PSP licensing operational since 2023; full VASP regime pending FATF compliance improvement...
Framework is evolving: PSP licensing operational since 2023; full VASP regime pending FATF compliance improvements; Kenya gray-listed by FATF until June 2025 actions.Central Bank of Kenya
CBK has issued repeated public warnings and collaborates with law enforcement to curb crypto-related fraud and unregi...
CBK has issued repeated public warnings and collaborates with law enforcement to curb crypto-related fraud and unregistered operations.Central Bank of Kenya
Crypto remains banned for payments and dealings by financial institutions; no comprehensive licensing or positive...
Crypto remains banned for payments and dealings by financial institutions; no comprehensive licensing or positive framework established as of 2026.Central Bank of Kenya
UNVERIFIED: Crypto exchanges must register as Virtual Asset Service Providers (VASPs) under the Prevention of Money L...
UNVERIFIED: Crypto exchanges must register as Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering and Financing of Terrorism (Amendment) Regulations 2023 if they engage in reporting activities.
UNVERIFIED: Capital gains from crypto are subject to 15% tax under the Income Tax Act, with transactions reported via...
UNVERIFIED: Capital gains from crypto are subject to 15% tax under the Income Tax Act, with transactions reported via iTax portal, but no specific crypto guidance issued.
Crypto is not banned outright but heavily restricted: no legal recognition, banking prohibition, and public warni...
Crypto is not banned outright but heavily restricted: no legal recognition, banking prohibition, and public warnings against use.Central Bank of Kenya
Draft regulations for VASPs were proposed in 2024 by CBK but remain unimplemented as of 2026.[UNVERIFIED: No primary ...
Draft regulations for VASPs were proposed in 2024 by CBK but remain unimplemented as of 2026.[UNVERIFIED: No primary source confirming passage]
The Central Bank of Kenya has powers to regulate crypto used for payments, as contemplated in recent frameworks.Ondato
The Central Bank of Kenya has powers to regulate crypto used for payments, as contemplated in recent frameworks.Ondato
No licensing regime exists for crypto exchanges or VASPs; CBK bans institutions from dealing in or facilitating virtu...
No licensing regime exists for crypto exchanges or VASPs; CBK bans institutions from dealing in or facilitating virtual assets including cryptoCentral Bank of Kenya.
UNVERIFIED: Proposed sandbox for fintech excludes crypto per CBK stance.
UNVERIFIED: Proposed sandbox for fintech excludes crypto per CBK stance.
Virtual Asset Service Providers (VASPs) are designated as reporting institutions under Proceeds of Crime and Anti-Mon...
Virtual Asset Service Providers (VASPs) are designated as reporting institutions under Proceeds of Crime and Anti-Money Laundering Regulations 2023Central Bank of Kenya.
CBK enforces ban through penalties on banks facilitating crypto; multiple warnings issued against unlicensed platform...
CBK enforces ban through penalties on banks facilitating crypto; multiple warnings issued against unlicensed platformsCentral Bank of Kenya.
Crypto banned for financial institutions; P2P trading persists in legal grey area with AML obligationsCentral Bank of...
Crypto banned for financial institutions; P2P trading persists in legal grey area with AML obligationsCentral Bank of Kenya.
Crypto service providers must register with the FRC as VASPs under the Prevention of Terrorism Financing Act, but no ...
Crypto service providers must register with the FRC as VASPs under the Prevention of Terrorism Financing Act, but no operational licenses are issued due to CBK's prohibition on crypto payments.Financial Reporting Centre
UNVERIFIED: No comprehensive licensing regime for VASPs exists beyond AML registration, as full crypto operations rem...
UNVERIFIED: No comprehensive licensing regime for VASPs exists beyond AML registration, as full crypto operations remain restricted.
UNVERIFIED: Draft VASP regulations propose Travel Rule compliance for VASPs, requiring originator and beneficiary inf...
UNVERIFIED: Draft VASP regulations propose Travel Rule compliance for VASPs, requiring originator and beneficiary information for transactions above KES 50,000 (~USD 400), but not yet enacted.Financial Reporting Centre
CBK has issued repeated warnings and collaborates with telecoms to block crypto trading apps, enforcing the payment b...
CBK has issued repeated warnings and collaborates with telecoms to block crypto trading apps, enforcing the payment ban.Central Bank of Kenya
CMA has blacklisted over 20 unlicensed crypto platforms and pursued enforcement against Ponzi schemes involving crypt...
CMA has blacklisted over 20 unlicensed crypto platforms and pursued enforcement against Ponzi schemes involving crypto.Capital Markets Authority
Crypto is not banned outright but prohibited for payments; trading and holding allowed with tax/AML compliance, p...
Crypto is not banned outright but prohibited for payments; trading and holding allowed with tax/AML compliance, pending VASP regulations.Central Bank of Kenya
Draft VASP rules from 2023 remain unimplemented as of 2026; sandbox pilots for blockchain explore regulated innovatio...
Draft VASP rules from 2023 remain unimplemented as of 2026; sandbox pilots for blockchain explore regulated innovation.Capital Markets Authority
CMA does not license crypto exchanges or VASPs; unauthorized platforms risk enforcement as unlicensed investment sche...
CMA does not license crypto exchanges or VASPs; unauthorized platforms risk enforcement as unlicensed investment schemes.Capital Markets Authority
Kenya implements FATF-compliant AML/CFT framework under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA)...
Kenya implements FATF-compliant AML/CFT framework under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), but crypto is excluded as VASPs are not designated; CBK views crypto as high-risk for money laundering.Central Bank of Kenya
CBK issued public notices in 2015 and 2020 banning banks from crypto dealings, with ongoing enforcement against facil...
CBK issued public notices in 2015 and 2020 banning banks from crypto dealings, with ongoing enforcement against facilitating transactions.Central Bank of Kenya
CMA has blacklisted multiple crypto platforms and warned investors, with powers to impose fines or shutdowns under se...
CMA has blacklisted multiple crypto platforms and warned investors, with powers to impose fines or shutdowns under securities laws.Capital Markets Authority
Crypto is illegal for banks and regulated entities to deal in; no legal framework for VASPs, but individuals can ...
Crypto is illegal for banks and regulated entities to deal in; no legal framework for VASPs, but individuals can hold/trade at own risk with tax obligations.Central Bank of Kenya
CBK's public notice emphasizes risks of money laundering in virtual assets but provides no specific compliance obliga...
CBK's public notice emphasizes risks of money laundering in virtual assets but provides no specific compliance obligations for crypto firmsCentral Bank of Kenya.
CBK enforces ban through public notices and warnings against banks processing crypto transactionsCentral Bank of Kenya.
CBK enforces ban through public notices and warnings against banks processing crypto transactionsCentral Bank of Kenya.
Crypto activities are prohibited for financial institutions; no comprehensive framework exists, with ongoing risk...
Crypto activities are prohibited for financial institutions; no comprehensive framework exists, with ongoing risks of enforcement against facilitatorsCentral Bank of Kenya.
Central Bank of Kenya (CBK): Administers the National Payments Systems Act (NPSA) and money remittance regulation...
Central Bank of Kenya (CBK): Administers the National Payments Systems Act (NPSA) and money remittance regulations; licenses and oversees payment-related VASPs.
Outcome: All financial institutions supervised by the CMA, CBK, and MOCI are prohibited from providing virtual as...
Outcome: All financial institutions supervised by the CMA, CBK, and MOCI are prohibited from providing virtual asset services or engaging in crypto-related activities. The ban was issued in the context of money laundering, terrorist financing risks, and consumer protection concerns, aligning with the recommendations of international bodies like the Financial Action Task Force (FATF).
intel.unverified-draft-bills-for-vasp-registration-under-proceeds – CONFIRMED as UNVERIFIED: Draft bills for VASP...
intel.unverified-draft-bills-for-vasp-registration-under-proceeds – CONFIRMED as UNVERIFIED: Draft bills for VASP registration under POCAMLA amendments have been proposed but not enacted as of 2026. The VASP Bill 2025 is the primary legislative vehicle, but POCAMLA amendments remain under consideration. FRC – Draft VA/VASP Regulations (2023) | National Assembly – VASP Bill 2025
intel.crypto-remains-banned-for-payments-by-cbk-since – CONFIRMED with nuance: Crypto remains banned for paymen...
intel.crypto-remains-banned-for-payments-by-cbk-since – CONFIRMED with nuance: Crypto remains banned for payments by financial institutions regulated by CBK. However, PSP-licensed entities can offer limited crypto-related payment services. The ban applies to unlicensed crypto activities by banks and financial institutions. The CBK's 2015 advisory and subsequent notices through 2022 reaffirm this stance. CBK – Public Notice on Virtual Assets (Dec 2020) | CBK – Advisory on Virtual Assets (2020) | CBK – PSP Regulations 2023
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