Kenya is actively working on cryptocurrency regulation as the government seeks to address the growing use of digital assets in the country. Despite being ranked third in Africa for crypto adoption, behind Nigeria and South Africa, Kenya lacks comprehensive regulations governing the sector. To fill this gap, the Kenyan parliament tasked the Blockchain Association of Kenya (BAK) with drafting the country’s first regulatory framework for digital assets, known as the Virtual Asset Service Providers (VASP) bill. This bill, which was initially drafted in early 2024, focuses on consumer protection, anti-money laundering (AML), and licensing requirements for crypto service providers.
The urgency to regulate is driven by concerns over money laundering and Kenya’s potential inclusion on the Financial Action Task Force (FATF) grey list if it fails to address deficiencies in its anti-money laundering systems. Kenya is aiming to position itself as a leader in crypto regulation in East Africa, hoping to attract foreign investments and support its growing digital economy.
All transactions in real time, the taxman revealed. Kenya’s cryptocurrency user base has experienced significant growth over the past few years and is expected to continue expanding.
According to data from Statista, the number of cryptocurrency users in Kenya increased from just 10,400 in 2017 to 493,500 in 2023. This upward trend is set to continue, with projections estimating the number of users will reach 733,300 by 2025. The surge highlights the growing interest and adoption of digital currencies in the country.
