kenya

According to Cryptopolitan, Kenya's 2026 Finance Bill proposes a 10% consumption tax on virtual asset service providers, which is double the 5% rate for the gambling industry. The bill also requires crypto companies to pay a one-time licensing fee of 150 million Kenyan Shillings and an annual renewal fee of 2 million Kenyan Shillings before operating in Kenya, and to submit an annual report to the Kenya Revenue Authority containing user and transaction details.Analysts believe this move could force crypto trading platforms and users to relocate their business to countries that are more friendly to cryptocurrencies, undermining Kenya's significance in the African crypto market. Protests led by GenZ have resumed in places like Nairobi, protesting the increased tax burden on digital services, cryptocurrencies, mobile, and financial transactions.

According to The Block, the Kenyan National Treasury released the draft of the "2026 Virtual Asset Service Provider Regulations" this Wednesday and opened a public consultation, with a deadline of April 10.The draft is based on the "Virtual Asset Service Provider Act" that came into effect on November 4, 2025, and was drafted by a multi-agency working group involving the Central Bank of Kenya and the Capital Markets Authority.

According to Cointelegraph, just days after Kenya implemented its first comprehensive cryptocurrency law, several large shopping malls in Nairobi have installed ATMs branded "Bankless Bitcoin," providing local residents with cash-to-cryptocurrency exchange services.It is reported that Kenya implemented the "2025 Virtual Asset Service Providers Act" on November 4, which is the country's first formal licensing framework for cryptocurrency platforms such as wallet operators, exchanges, and custodians.

ChainCatcher news, according to BitKE, the Kenyan Web3 payment platform HoneyCoin has announced the completion of a $4.9 million funding round, led by Flourish Ventures. The funds will be used to scale operations, enrich the product line, and bring in executives. HoneyCoin founder David Nandwa started the company at the age of 19 in 2020, and the platform's monthly transaction volume now exceeds $150 million, serving 350 business clients and hundreds of thousands of users.HoneyCoin achieves instant or same-day settlements through a stablecoin-compatible platform, supporting businesses in 45 countries, and has established partnerships with institutions such as MoneyGram, UBA Bank, and Stripe. This funding will help further expand its team and compliance framework.

ChainCatcher news, it is reported that Kenya's Cabinet Secretary for Information and Communication Technology, William Kabogo, has officially launched the national digital token KenyaNDT (KDT). The token is deployed on the Solana blockchain, becoming the first national-level digital asset in Sub-Saharan Africa.Kabogo stated that Kenya is formulating a national virtual asset policy and a draft bill for virtual asset service providers (VASP) to build a more regulated digital asset regulatory framework. He also revealed that the monthly digital asset trading volume for Kenyan citizens has exceeded $500 million, reflecting the high level of public participation in this field.

ChainCatcher news, Kenya's Cabinet Secretary for Information and Communication Technology William Kabogo announced the official launch of the national digital token KenyaNDT (KDT), which is deployed on the Solana blockchain.Kabogo stated that Kenya is formulating a national virtual asset policy and a draft bill for virtual asset service providers (VASP) to build a more regulated digital asset regulatory framework. He also revealed that the monthly digital asset trading volume for Kenyan citizens has exceeded $500 million, reflecting the high level of public participation in this field.Although the Central Bank of Kenya has not clarified the fiat currency attributes or pegging mechanism of KenyaNDT, Kabogo also clarified that the token is not directly issued by the government, but its goals are highly aligned with the national digital strategy. Currently, the government is negotiating with the Central Bank, the Communications Authority, and the Ministry of Finance to advance the implementation of governance models and regulatory compliance.

ChainCatcher news, according to Techbuild, a major bank in Kenya recently suffered a serious internal attack, resulting in approximately 500 million Kenyan Shillings (about 4 million USD) being stolen. Investigations revealed that the perpetrators were external contractors responsible for the bank's IT systems, who manipulated the card management system to generate virtual cards linked to mobile wallets, subsequently transferring the funds rapidly.The stolen funds were laundered into multiple offshore wallets, with the stablecoin Tether (USDT) playing a key role throughout the money laundering process, making the money trail harder to trace. The Directorate of Criminal Investigations (DCI) in Kenya has launched an investigation and is collaborating with the bank's cybersecurity team to track the hackers' paths. Relevant officials stated that those involved are expected to be arrested soon.**

ChainCatcher news, the Cabinet Secretary of the Ministry of Information, Communication and Digital Economy (MICDE) of Kenya, Hon. William Kabogo, stated on the X platform that Kenya will continue to vigorously promote the development of digital assets.He mentioned that Kenya's approach remains cautious, supporting innovation and financial inclusion while prioritizing public safety and sound regulation. The policies being formulated aim to balance opportunities with strong regulation.

ChainCatcher news, according to Cointelegraph, the proposed VASP (Virtual Asset Service Provider) bill in Kenya has raised concerns among local crypto startups, warning that the bill could give undue influence to lobbying groups associated with Binance, potentially undermining fair competition in the country's digital asset industry.It is reported that VAC has hosted regulatory dialogues sponsored by Binance multiple times and has a vested interest with it, now being proposed to be included as a member of the regulatory committee. Sources say that Binance pays VAC $6,000 per month for policy lobbying, which could lead to new regulations favoring Binance and weaken market fairness.In response, the head of VAC stated that it has engaged in policy communication with the IMF, the Central Bank of Kenya, and Parliament for two years, gaining national trust. Binance has not yet responded to this.

ChainCatcher news, according to Decrypt, the Kenyan High Court ruled on Monday that the World project (Worldcoin), founded by OpenAI CEO Sam Altman, violated the country's privacy laws and ordered it to delete all collected biometric data within 7 days under the supervision of the Office of the Data Protection Commissioner (ODPC).The court found that the project induced users to provide biometric information through cryptocurrency payments without obtaining valid consent. This is the second country to impose restrictions on World this month, following Indonesia.

ChainCatcher news, according to Bitcoin News, Kenya is drafting a new regulatory bill for digital assets.It is reported that nearly 10% of the country's population is involved in cryptocurrency activities. The proposed bill will focus on the licensing management of cryptocurrency exchanges and wallets.

ChainCatcher news, according to Bloomberg, the Kenyan government is drafting a law that requires virtual asset service providers to establish local offices to strengthen regulation of the rapidly growing digital asset industry.The proposed policy does not apply to assets that cannot be transferred, traded, or used for payment and investment outside a closed ecosystem, and aims to address the gaps in the legal and regulatory framework in the virtual asset sector, as well as issues related to consumer protection, governance, data privacy, and cybersecurity.Kenya introduced a 3% tax on digital asset trading income in 2023, but has yet to establish a comprehensive regulatory framework for the industry. The government hopes to fill the regulatory gap with this move while addressing industry risks such as money laundering, terrorist financing, tax evasion, fraud, and cybercrime.

ChainCatcher news, according to Cointelegraph, Kenyan Finance Minister John Mbadi stated that the government is working to establish a legal and regulatory framework for cryptocurrencies and has drafted a proposal for a "National Policy on Virtual Assets and Virtual Asset Service Providers." The draft aims to create a fair, competitive, and stable market for cryptocurrencies while addressing risks such as money laundering, terrorist financing, and consumer protection.The draft proposes to build a comprehensive legal and regulatory framework to manage virtual asset activities and their service providers (VASP), as well as to establish relevant standards and procedures. Its goal is to promote the healthy development of Kenya's virtual asset market.The proposal will be open for public feedback until January 24. If approved, Kenya will join countries like South Africa and Nigeria that have already implemented cryptocurrency regulations.

ChainCatcher news, according to Jinshi reports, Kenya's Cabinet Secretary for the Treasury John Mbadi stated on Friday that Kenya is preparing legislation to legalize cryptocurrency, marking a significant shift in the government's stance.Kenya has banned the use of cryptocurrency, but the public continues to use it widely underground to circumvent restrictions. In a statement outlining the new policy, Mbadi said, "The emergence and development of virtual assets and virtual asset service providers have brought innovation to local and international financial systems, presenting vibrant opportunities and challenges."

ChainCatcher news, the International Monetary Fund (IMF) recommends that Kenya create a clear and predictable regulatory environment for the cryptocurrency market to protect consumers and address risks related to anti-money laundering (AML) and combating the financing of terrorism (CFT).The IMF points out that Kenya currently relies on outdated regulations from traditional markets and lacks legally binding regulation for the crypto market, leading to an increase in crypto-related scams and criminal activities.The IMF suggests that Kenya develop a cryptocurrency regulatory environment that aligns with international frameworks and standards, while also considering the unique challenges and opportunities of the local market, ensuring that the regulatory framework protects consumers, maintains financial stability, and promotes innovation.

ChainCatcher news, Bitcoin Magazine posted on X that the Kenya National Fire Brigade Association has added Bitcoin to its balance sheet.

ChainCatcher news, the Director of the Kenya Revenue Authority (KRA), Anthony Mwaura, recently revealed that the Kenyan government collected approximately $77 million (10 billion Kenyan Shillings) in taxes from 384 cryptocurrency traders in the 2023-24 fiscal year.The KRA plans to collect over $465 million in taxes solely from cryptocurrency traders. Overall, the agency aims to collect $15.88 billion in taxes over the next five years, with the crypto industry being viewed as a significant tax target for the Kenyan government.

ChainCatcher news, according to Bitcoin.com, the Kenya Revenue Authority (KRA) has proposed the establishment of a tax system integrated with cryptocurrency trading platforms for real-time monitoring of transactions. Under this system, the KRA will capture key information for each transaction, such as transaction time and value.The tax department stated that the current system cannot track cryptocurrency transactions, leading to significant tax revenue loss. The tax department also cited Section 3 of the Kenyan Income Tax Act, which allows for taxation of cryptocurrency income. A tax official in Kenya stated, "Our goal is to establish a robust and efficient system to effectively collect cryptocurrency taxes."In addition to the real-time tax system, Kenya is also considering the use of artificial intelligence (AI) and machine learning technologies to detect tax evasion. These technologies are expected to optimize the tax administration processes of the Kenya Revenue Authority and improve transparency.

ChainCatcher news, encrypted fund issuer Valour has signed a memorandum of understanding with the Nairobi Securities Exchange (NSE) and the financial instrument issuance platform SovFi to issue and trade digital asset exchange-traded products (ETP) on the Kenya NSE.