Kenya Set to Adopt First Crypto Law After Parliament Passes VASP Bill
TLDR
- Kenya is poised to adopt its first cryptocurrency law after Parliament passed the Virtual Asset Service Providers (VASP) Bill
- First tabled in 2024, the bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of digital assets
- The new framework will introduce clear licensing and solvency requirements for both local and foreign operators
Kenya is poised to adopt its first cryptocurrency law after Parliament passed the Virtual Asset Service Providers (VASP) Bill, 2025, at its third reading, sending the legislation to President William Ruto for assent.
First tabled in 2024, the bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of digital assets, giving the Treasury Cabinet Secretary authority to issue detailed rules on stablecoins, tokenisation, capital standards, and anti-money laundering compliance.
The new framework will introduce clear licensing and solvency requirements for both local and foreign operators, including Luno, Busha, KotaniPay, Fonbnk, Swypt, and Binance. It comes after months of public consultation and committee review.
“Kenya is one signature away from making regulatory history,” said Chebet Kipingor of Busha Kenya, adding that the law signals a shift toward balancing innovation with consumer protection.
President Ruto is expected to receive the final bill within weeks.
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Key Takeaways
Kenya’s VASP Bill could make it one of the first African nations with a comprehensive digital-asset regulatory framework—an important milestone for one of the continent’s most active crypto markets. The law aims to provide certainty for investors and startups while tightening oversight to meet international anti-money laundering standards. Its timing is strategic: Kenya remains under scrutiny from the Financial Action Task Force (FATF) and is under pressure to modernize its financial system following the cancellation of its IMF Extended Fund Facility. Yet, the details of the Treasury’s sub-regulations—defining capital adequacy, custody rules, and disclosure—will determine whether Kenya becomes a competitive regional crypto hub or risks driving operators offshore. If implemented effectively, the VASP law could position Kenya alongside Nigeria and South Africa as a leader in regulated digital finance, setting a benchmark for East Africa’s fintech and blockchain innovation landscape.
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