What happened?
Kenya’s parliament passed the Virtual Asset Service Providers Bill, creating the country’s first comprehensive law to regulate cryptocurrencies and virtual assets. The law assigns the Central Bank of Kenya to license stablecoins and virtual assets while the Capital Markets Authority will oversee crypto exchanges and trading platforms. The bill now awaits President William Ruto’s signature to become law.
Who does this affect?
Crypto exchanges, wallet providers, and fintech startups operating in or entering Kenya will need to register and comply with the new licensing and oversight rules. Retail and institutional investors, plus many young Kenyans who use crypto for payments and trading, will see clearer protections and potentially more services. Multiple regulators — including the central bank, capital markets authority and others — will be involved, changing how businesses interact with government oversight.
Why does this matter?
Clear rules should boost investor confidence and attract global exchanges and fintech investment to Kenya, increasing liquidity and market activity in the local crypto sector. Licensing of stablecoins and expanded services could make dollar-backed digital payments more common, which may pressure the shilling and prompt ongoing macro and regulatory scrutiny. Overall, formal regulation could shift both retail and institutional capital into regulated Kenyan markets, positioning the country as a regional crypto hub and intensifying competition across African markets.