Kenya Releases Draft VASP Regulations, Seeks Public Feedback

• Kenya opens VASP draft rules for public input ahead of full crypto law rollout.
• Draft framework introduces licensing, reserves, and disclosure requirements.
• Policy shift reflects move from warnings to structured crypto regulation.

Kenya has taken a major step toward regulating its crypto sector by releasing draft rules for virtual asset service providers (VASPs), opening the framework for public feedback ahead of full implementation.

The proposal outlines requirements for licensing, stablecoin reserves, and disclosure obligations, and is now open for public comment until April 10, 2026.

What the Draft VASP Rules Cover

The National Treasury, working alongside the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA), has released the Draft Virtual Asset Service Providers Regulations, 2026, along with a Regulatory Impact Statement.

The framework introduces key requirements around licensing, stablecoin reserves, and disclosure obligations, aiming to bring clearer oversight to crypto-related activities in Kenya.

The draft rules are issued under the Virtual Asset Service Providers Act, 2025, which establishes the legal foundation for regulating digital asset businesses operating in or from Kenya.

Public Consultation Process and Timeline

The government has opened the proposal for public comment, with stakeholders invited to submit feedback until April 10, 2026.

Submissions can be made through written memoranda, email, or physical delivery to the National Treasury. In addition, authorities plan to hold nationwide public forums starting March 30 to gather broader input.

Officials confirmed the draft was developed through a multi-agency effort involving the National Treasury, CBK, and CMA

In addition, public participation is being conducted in line with statutory requirements. Members of the public have been invited to submit written comments, memoranda, or inputs to the Principal Secretary at the National Treasury by mail, hand delivery, or email before the April 10 deadline. Authorities also plan to hold nationwide public forums beginning March 30 to gather additional feedback.

Regulatory Shift Follows Years of Policy Evolution

Kenya’s approach to digital assets has evolved significantly over the past decade, moving from caution to structured regulation.

The Central Bank of Kenya first issued warnings against virtual currencies in 2015, followed by similar advisories from the Capital Markets Authority in 2018. Despite growing adoption, the sector remained largely unregulated for years.

In 2023, the government introduced a 3% digital asset tax on crypto transactions. This was later replaced in 2025 with a 10% excise duty on service fees charged by virtual asset providers.

The shift reflects a broader effort to formalize the sector while maintaining oversight and tax compliance.