Kenya has taken a major leap toward becoming a digital economy powerhouse with the approval of the Virtual Asset Service Providers Bill. This landmark legislation sets the foundation for regulating cryptocurrencies, digital assets, and related services across the country.
Finance Committee Chair Kuria Kimani confirmed the bill’s passage, describing it as a vital step toward creating a safe, clear, and investor-friendly environment for crypto-related businesses. The bill is now awaiting President William Ruto’s signature to officially become law.
Central Bank and Capital Markets Authority to Oversee Crypto Sector
Once enacted, the new law will give the Central Bank of Kenya the authority to license stablecoins and other virtual assets. Meanwhile, the Capital Markets Authority will be responsible for regulating cryptocurrency exchanges and trading platforms operating in the country.
This dual oversight approach is designed to ensure transparency, consumer protection, and accountability—key factors in attracting both local and international investors.
Kenya Poised to Lead Africa in Blockchain Adoption
By passing this bill, Kenya joins South Africa as one of the few African nations with comprehensive laws on digital assets. Lawmakers hope this regulatory clarity will make Kenya a go-to destination for global crypto companies like Binance and Coinbase, with early discussions already in progress.
Supporters of the bill believe it will position Kenya as a gateway to Africa’s digital economy, especially among the youth, who are increasingly using crypto for payments, investments, and business.
With a track record of fintech innovation through services like M-Pesa, Kenya is now extending its financial leadership into blockchain and Web3 technologies. The new legislation reflects a broader strategy to modernize the financial sector and tap into the potential of decentralized finance (DeFi) and virtual assets.
As the world shifts towards digital economies, Kenya’s proactive move could pave the way for sustainable growth, financial inclusion, and increased foreign investment in the coming years.
