Kenya is on the verge of rewriting the rules of its digital economy. The National Assembly has approved the Virtual Asset Service Providers (VASP) Bill at the committee stage, clearing the way for its final reading before President William Ruto’s assent. Once passed, the bill will give Kenya a clear regulatory path for cryptocurrencies, tokenisation, and digital asset services.
What’s new? The VASP Bill puts the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) in charge of oversight, while the Treasury will design detailed rules. These will cover stablecoins, tokenised assets, trading platforms, cybersecurity, advertising standards, and anti–money laundering compliance.
Between the lines: Kenya ranks among Africa’s top five crypto markets, driven by remittances, peer-to-peer trading, and fintech adoption. Blockchain analytics firm Chainalysis estimates that Kenya handles hundreds of millions of dollars in crypto transactions each year, much of it through informal channels. Clear rules could allow local startups and global exchanges to operate openly, building trust and access to capital.
Zoom out: Across the continent, regulators are moving in the same direction. South Africa has licenced more than 240 crypto firms, Nigeria has created a sandbox for digital asset regulation, and Mauritius already enforces global standards.
The big picture: Kenya’s move signals a new phase for East Africa’s digital economy—one where crypto is no longer a fringe experiment but a key part of its financial future.
