Kenya Passes Digital Asset Regulation Bill
Kenyan lawmakers have approved the Virtual Asset Service Providers (VASP) Bill. The bill regulates digital assets such as cryptocurrencies. It now awaits President William Ruto’s signature to become law.
The new law aims to clarify rules around digital assets. It also seeks to attract investment and protect consumers. Kuria Kimani, Head of the Finance Committee in Kenya’s National Assembly, said the bill places Kenya alongside South Africa. Both countries now have comprehensive cryptocurrency laws.
“We hope Kenya becomes the gateway into Africa for digital asset businesses,” Kimani said. “Most young people aged 18 to 35 already use virtual assets for trading, payments, and investments. The act provides clear regulation for investors and innovators.”
Regulatory Framework and Oversight
The Central Bank of Kenya will license stablecoin issuers and other virtual asset products. The Capital Markets Authority (CMA) will oversee cryptocurrency exchanges and trading platforms. This dual oversight aims to ensure industry stability and responsibility.
The government’s move comes as global interest in dollar-backed stablecoins grows. International regulators have warned these coins may threaten monetary sovereignty in developing countries. Despite this, Kenya believes regulation will foster innovation and growth in its fintech sector.
Growing Crypto Use in Kenya
In August 2025, Nairobi-based startup AfriBit Africa facilitated over 2,000 Bitcoin transactions in Kibera. Kibera is one of Kenya’s largest urban slums, where more than 80% of residents lack access to formal banking despite a strong mobile money system.
AfriBit Africa supports informal workers by providing cryptocurrency grants. It also teaches women and youth to earn income through upcycling. Over 40 local businesses now accept Bitcoin payments.
“We’re not here to preach Bitcoin,” said Mdawida of AfriBit Africa. “We want to show that even the most ignored groups can start a financial revolution with tools they truly own.”
