Kenya Implements New Crypto Licensing Rules for Digital Asset Firms

The Central Bank of Kenya has issued Legal Notice No. 134 of 2026, establishing a comprehensive licensing framework for virtual asset service providers (VASP) in the country. The rules set minimum paid‑up capital of Ksh 300 million for stablecoin issuers, Ksh 150 million for wallet providers, Ksh 100 million for exchanges, and Ksh 20 million for ICO facilitators, together with liquid‑capital requirements and mandatory approval before operating. Stablecoin issuers must fully back tokens with reserve assets, conduct quarterly stress tests, and define clear redemption policies.

The regulations were gazetted as the Virtual Asset Service Providers (VASP) Regulations, 2026, finalising the legal framework introduced by the Virtual Asset Service Providers Act assented to by President William Ruto in October 2025. They require all firms serving Kenyan customers, including foreign entities without a physical presence, to obtain licences, meet governance, anti‑money‑laundering, cybersecurity and consumer‑protection standards, retain records for seven years and submit regular reports. Kenya, one of East Africa’s largest crypto markets with about $19 billion of inflows in the past year, aims to safeguard investors while providing regulatory certainty for the sector.