LogoRegulatory Alerts

Kenya: crypto & digital assets regulation

Regulated

VASP licensing under the 2025 Act; CBK/CMA dual oversight

Lead regulator:
Capital Markets Authority
Key law:
Virtual Asset Service Providers Act, 2025
Last updated:
2026-07-12

Kenya has established a mandatory licensing regime for virtual asset service providers (VASPs) under the Virtual Asset Service Providers Act, 2025, which became effective on November 4, 2025. The regulatory framework operates under the dual oversight of the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK). Licensees are required to adhere to strict operational, prudential, and compliance standards.

This new statutory framework supersedes earlier restrictive stances, such as the CBK's 2015 Banking Circular No. 14, which previously warned financial institutions against dealing in virtual currencies like Bitcoin. While virtual currencies are not legal tender, the 2025 Act provides a clear pathway for regulated entities to operate, marking a significant shift towards formalization and consumer protection in the digital asset sector.

Who regulates

  • Capital Markets Authority

    Primary supervisor under the 2025 Act

    [1][2]

  • Central Bank of Kenya

    Co-supervisor under the 2025 Act

    [1][2]

Core laws & rules

  • Virtual Asset Service Providers Act (2025)

    Establishes a mandatory licensing and regulatory framework for businesses providing virtual asset services in or from Kenya.

    [2]

  • Banking Circular No 14 of 2015 (2015)

    Previously warned financial institutions against dealing in virtual currencies, stating they are not legal tender.

    [3][4]

Licensing & registration

  • VASP License

    Mandatory licensing for businesses providing virtual asset services in or from Kenya under the 2025 Act. Timeline: Effective November 4, 2025

    [1][2]

Restrictions & warnings

  • Virtual currencies are not legal tender in Kenya.

    [3][4]

  • Licensees must adhere to strict operational and compliance standards.

    [2]

Direction of travel

  • The National Treasury is currently developing implementing regulations to operationalize the 2025 Act.

    [1]

Sources

  1. Commencement of the Virtual Assets Service Providers Act, 2025 · 2025-11-18
  2. Virtual Asset Service Providers Act, 2025 · 2025-01-01
  3. Banking Circular No 14 of 2015 - Virtual Currencies - Bitcoin · 2015-12-18
  4. Banking Circular No 14 of 2015 - Virtual Currencies - Bitcoin · 2015-12-18

Email alerts for Kenya updates

New circulars, rules and guidance — a digest in your inbox, same day.

This guide is compiled automatically from 4 primary-source documents published by Kenya's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.