Kenya has taken a major step toward regulating the fast-growing world of digital currencies after Parliament passed a landmark bill to govern the use and trade of cryptocurrencies and other virtual assets — a move expected to position the country as a leading fintech hub in Africa.
The Virtual Asset Service Providers Bill, passed last week, aims to bring order, transparency, and investor protection to the digital finance space while opening the door for billions in crypto-related investments.
The new legislation, sponsored by the National Assembly’s Finance and National Planning Committee, will now be forwarded to President William Ruto for assent, after which it will officially become law.
Committee chairperson Kuria Kimani confirmed the bill’s passage, saying it would finally address long-standing concerns about the lack of regulation for cryptocurrencies and related assets.
“We now have a framework that gives confidence to investors, protects consumers, and ensures accountability,” Kimani said. “Kenya can now be the gateway for digital finance into Africa.”
Under the law, the Central Bank of Kenya (CBK) will act as the licensing authority for the issuance of stablecoins and other virtual currencies, while the Capital Markets Authority (CMA) will regulate and license crypto exchanges, digital wallets, and trading platforms.
This dual regulatory structure is intended to ensure that all virtual asset transactions meet anti-money laundering (AML) and consumer protection standards while enabling innovation in the fintech sector.
Kimani said the expected legal clarity is already drawing interest from global cryptocurrency exchanges and investors.
“We have held conversations with platforms like Binance and Coinbase that have been waiting for a regulated environment before investing,” he noted. “Kenya has the talent, infrastructure, and youthful population to become Africa’s crypto hub.”
The bill comes amid growing international momentum toward regulating virtual assets. Countries such as South Africa and Nigeria have already implemented crypto oversight frameworks, while others across the continent are developing pilot projects for central bank digital currencies (CBDCs).
By passing this legislation, Kenya joins a small but growing group of African nations embracing digital assets as part of their economic growth strategies.
The government’s move follows warnings from global financial regulators that unregulated U.S. dollar-backed stablecoins could undermine weaker currencies and disrupt monetary policy in developing economies.
To mitigate this, Kenya’s new law gives the CBK authority to set rules for stablecoin issuance, exchange rate management, and digital asset custody.
“This law ensures innovation happens responsibly,” said Finance Principal Secretary Dr. Chris Kiptoo, who has been advising Parliament on the framework. “We want to enable blockchain growth while protecting the stability of the Kenyan shilling.”
Kenya is internationally recognized for pioneering mobile money through M-Pesa, which revolutionized digital payments and financial inclusion for millions. The Virtual Asset law now extends that leadership into the blockchain era — enabling new forms of wealth creation, investment, and cross-border trade.
Economists say the move could attract venture capital, blockchain startups, and crypto payment solutions into Kenya’s thriving tech ecosystem, further anchoring Nairobi’s status as the “Silicon Savannah.”
Kimani said the bill draws from regulatory models in the United States, United Kingdom, and European Union, with specific provisions on consumer protection, cybersecurity, and transparency of virtual asset service providers.
“Most young people between 18 and 35 are already engaging with virtual assets — whether for trading, payments, or business,” Kimani said. “It was time to give them a safe, structured environment to thrive.”
Kenya’s youth-driven digital economy has been rapidly expanding, with blockchain developers, NFT artists, and Web3 entrepreneurs emerging across major cities. Analysts expect the new law to create tens of thousands of skilled jobs in blockchain compliance, crypto analytics, and digital finance.
Once signed into law by President Ruto, the Virtual Asset Service Providers Act will come into effect within six months. Regulators are expected to issue detailed implementation guidelines, including registration procedures, taxation rules, and penalties for unlicensed operators.
The CBK and CMA are also expected to roll out public awareness campaigns to educate citizens about safe crypto trading and fraud prevention.
If implemented effectively, the law could usher in a new era for Kenya’s digital economy — one that blends innovation with accountability and turns the country into a continental leader in the global crypto market.
