LogoRegulatory Alerts

Kenya: fintech & payments regulation

Regulated

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

Lead regulator:
Central Bank of Kenya
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 joint oversight of the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). Licensees are required to adhere to strict operational, capital, and governance standards to ensure market integrity and consumer protection.

In parallel, the CBK maintains comprehensive oversight of traditional payment services, digital credit providers, and money remittance under the National Payment System Regulations and specific circulars. The regulatory environment emphasizes robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance, including enhanced due diligence and record-keeping obligations for all financial institutions and payment service providers.

Who regulates

  • Central Bank of Kenya

    Primary supervisor for payment systems, digital credit, and VASP oversight

    [1][2]

  • Capital Markets Authority

    Co-supervisor for VASP licensing and capital markets intermediaries

    [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.

    [1][2]

  • National Payment System Regulations (2014)

    Outlines requirements for authorizing and overseeing payment service providers and payment systems.

    [3]

Licensing & registration

  • VASP License

    Mandatory licensing for virtual asset service providers under the 2025 Act, overseen by CBK and CMA. Timeline: Effective November 4, 2025

    [1]

  • Payment Service Provider (PSP)

    Authorization required for payment service providers under CBK regulations.

    [3]

Restrictions & warnings

  • Strict AML/CFT obligations including Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) are mandated for all financial institutions and VASPs.

    [4][5]

Direction of travel

  • The National Treasury is currently developing implementation guidelines for the VASP Act, indicating an active phase of regulatory maturation.

    [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. National Payment System Regulations 2014 · 2018-12-31
  4. Payments Circular No. 13 of 2023 CDD EDD and Record Keeping · 2023-11-08
  5. Central Bank Circular No. 12 of 2023 - AML CFT CPF Obligations on CDD EDD and Record Keeping · 2023-11-03

Email alerts for Kenya updates

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

This guide is compiled automatically from 5 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.