Kenyan lawmakers have approved a landmark bill to regulate virtual assets such as cryptocurrencies, marking a significant step toward formalizing the nation’s growing digital economy.
The new Virtual Asset Service Providers Bill aims to provide clear legal guidelines for the trading and management of digital currencies, encouraging both local and foreign investment in the sector.
Finance Committee chairperson Kuria Kimani confirmed that Parliament passed the bill last week, describing it as a vital move to close the regulatory gap that has long left the crypto market in uncertainty.
Once President William Ruto signs it into law, Kenya will join South Africa as one of the few African nations with comprehensive cryptocurrency legislation.
Central Bank and Capital Markets Authority to oversee licensing
Under the new law, the Central Bank of Kenya will serve as the main licensing body for the issuance of stablecoins and other virtual assets, while the Capital Markets Authority will regulate crypto exchanges and trading platforms.
The legislation is expected to bring much-needed structure to the sector and protect users from fraud and volatility.
Kimani said the framework would attract international crypto firms such as Binance and Coinbase, who have already held discussions with the government.
He noted that the act positions Kenya as a potential entry point for global investors looking to explore Africa’s emerging digital finance market.
Kenya’s growing fintech reputation
The move comes as global regulators express concern over the rapid expansion of U.S. dollar-backed stablecoins, which could affect weaker economies. Despite these risks, Kimani remains optimistic that Kenya’s clear policy direction will stimulate growth in fintech innovation.
He added that many young Kenyans, especially those aged between 18 and 35, are increasingly using digital assets for trading, payments, and online businesses. The law, he said, reflects lessons drawn from leading financial markets like the United States and Britain.
Kenya already enjoys global recognition for its innovation in mobile money, with M-Pesa setting the stage for digital finance adoption.
The new crypto legislation, analysts say, could be the next major milestone in solidifying Kenya’s position as a regional fintech hub.
