Kenya Crypto Economy

Truth Behind Kenya’s Now-Withdrawn VASP Bill Exposed

KenMichaelsJuly 4, 2025January 29, 2026010 mins

Kenya’s VASP bill withdrawn after suspicious amendments threatened $100.7M crypto ecosystem with regulatory capture and monopolistic stablecoin controls. Muthoni Njogu identified governance gaps: insufficient board expertise standards, political appointment concentration, Virtual Assets Chamber of Commerce board seat conflict. Last-minute clause mandating fiat conversions exclusively through licensed Kenya Shilling stablecoin issuer sparked ecosystem manipulation fears. AfDB’s Adesina warns “state capture undermines growth” as East Africa (Tanzania, Uganda) watches Kenya’s regulatory integrity crisis.

Kenya Scraps 3% Crypto Tax: New Fee-Based System Explained.

KenMichaelsJune 30, 2025January 29, 202608 mins

Kenya repeals 3% digital assets tax following unified industry advocacy, replacing with 10% excise duty on VASP fees, net trader cost drops to 0.1%. Swypt, Busha, HoneyCoin, Luno, GoChapaa + PwC presented case against transaction value taxation.
Kuria Kimani (Finance Committee): “Changed from transaction amount to fees charged when trading.” Section 12F Income Tax Act repealed.
Finance Bill 2025 moves to Senate, awaits President Ruto assent. VASP Bill 2025 licensing framework targets consumer protection. Kenya drafts East Africa crypto policy blueprint alongside Nigeria, South Africa