Kenya is on the verge of formally entering the world of regulated cryptocurrency trading after Parliament passed a landmark bill to govern digital assets and related services.
The Virtual Asset Service Providers Bill, approved by lawmakers last week, establishes the first comprehensive legal framework for cryptocurrencies in the country.
The Bill seeks to create order in a fast-growing but largely unregulated sector that has both excited young investors and alarmed financial authorities.
Kuria Kimani, chair of the National Assembly’s Finance Committee, confirmed the bill’s passage on Monday, saying it “lays the foundation for a safer and more transparent digital economy.”
“We are hoping that Kenya can now be the gateway into Africa,” Kimani told reporters.
“Most of the young people between 18 and 35 years of age are now using virtual assets for trading, settling payments, and as a form of investment or doing business.”
The law designates the Central Bank of Kenya as the licensing body for issuing stablecoins and other virtual assets. Meanwhile, the Capital Markets Authority will oversee firms seeking to run crypto exchanges or trading platforms.
If signed by President William Ruto, the law would make Kenya one of only two African nations—alongside South Africa—with specific legislation for digital assets.
Kenya’s draft law borrows from existing regulatory models in the United States and United Kingdom, adapting them to local realities.
The nation’s crypto adoption has surged in recent years, driven largely by young people seeking alternative investments and faster payment solutions. With the legal groundwork now in place, many will be watching closely to see how President Ruto responds—and how soon Kenya can turn digital promise into tangible opportunity.
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