Kenyan lawmakers have approved a new bill to regulate digital assets such as cryptocurrencies, marking a major step towards providing legal clarity for the country’s growing financial technology sector. The Virtual Asset Service Providers Bill, passed last week by the National Assembly, aims to establish clear rules for crypto trading, issuance of digital tokens, and the operation of exchanges.
The chairman of the parliamentary finance committee, Kuria Kimani, confirmed the passage of the bill on Monday, saying the move is designed to attract more investments into Kenya’s digital economy. According to him, the new law will help address long-standing concerns over the lack of regulation that has left many investors and entrepreneurs uncertain about operating in the sector.
With this development, Kenya is now close to joining South Africa as one of the few African countries with formal laws governing digital assets. The bill will become law once it receives the signature of President William Ruto.
Under the provisions of the new act, the Central Bank of Kenya (CBK) will serve as the main licensing authority responsible for approving stablecoins and other virtual assets. Meanwhile, the Capital Markets Authority (CMA) will oversee the licensing of cryptocurrency exchanges and digital trading platforms.
Kuria Kimani explained that the new law comes at a time when global interest in cryptocurrencies and stablecoins—especially those backed by the U.S. dollar—is rising rapidly. He noted that Kenya wants to ensure it is well-positioned to benefit from these technological advancements while protecting its financial system from potential risks.
He said, “We are hoping that Kenya can now become the gateway into Africa for digital asset investments. Most young people between the ages of 18 and 35 are already using virtual assets for trading, settling payments, and as a way of doing business or investing.”
The legislation also reflects the government’s growing awareness of the potential threat that unregulated stablecoins could pose to developing economies. Global financial regulators have warned that widespread adoption of dollar-backed digital currencies could weaken local currencies and reduce monetary control.
Analysts say the new law will likely boost confidence among global crypto companies looking to operate in Africa. Kimani mentioned that the government has held talks with major crypto exchanges such as Binance and Coinbase, both of which have expressed interest in expanding into Kenya once a clear regulatory framework is established.
He added that the legislation has borrowed from international best practices used in countries like the United States and the United Kingdom, particularly in areas of anti-money laundering, consumer protection, and market supervision.
Kenya’s push to regulate cryptocurrencies reflects its broader ambition to strengthen its position as a technology and innovation hub in Africa. The country has already earned global recognition for its pioneering role in mobile money technology, thanks to M-Pesa, the mobile-based financial service developed by Safaricom. M-Pesa allows users to send and receive money, save, and invest directly from their phones and has become one of Africa’s most successful fintech innovations.
Industry experts believe that Kenya’s new law could encourage the growth of a more transparent and secure digital finance ecosystem. It could also enable startups to raise capital through digital tokens, promote innovation in blockchain applications, and support cross-border financial inclusion.
However, regulators will still face challenges in ensuring compliance, preventing fraud, and protecting consumers from market volatility. The success of the law will depend on how effectively the Central Bank and the Capital Markets Authority implement the licensing and monitoring systems for digital asset companies.
Kenya’s crypto adoption rate is already among the highest in Africa. A large number of young Kenyans use cryptocurrencies for remittances, online trading, and digital payments. With this new legal framework, the government hopes to channel that enthusiasm into a well-regulated market that supports innovation while maintaining financial stability.
The passing of the Virtual Asset Service Providers Bill is therefore seen as a significant moment for Kenya’s digital economy, as it seeks to balance innovation with responsible oversight in one of the fastest-growing financial sectors in the world.
