Kenyan lawmakers have approved a landmark bill to regulate digital assets such as cryptocurrencies and stablecoins, signaling the country’s commitment to fostering innovation and investment in the fast-growing financial technology sector.
The Virtual Asset Service Providers Bill, passed last week, aims to provide a clear regulatory framework for the crypto industry, which has long operated in a legal grey area. Kuria Kimani, chairperson of the Finance Committee in the National Assembly, confirmed the bill’s passage, noting that it awaits President William Ruto’s assent to become law.
Once enacted, the law will make Kenya one of the few African nations alongside South Africa to formally regulate digital assets. The Central Bank of Kenya (CBK) will serve as the licensing authority for the issuance of stablecoins and other virtual currencies, while the Capital Markets Authority (CMA) will oversee the licensing of crypto exchanges and trading platforms.
According to Kimani, the legislation is expected to attract increased investment from global crypto firms such as Binance and Coinbase, which have previously expressed interest in the Kenyan market. “We are hoping that Kenya can now be the gateway into Africa,” he said. “Most young people between 18 and 35 years are already using virtual assets for trading, payments, and investment.”
The government’s move comes amid global debates about the risks posed by U.S. dollar-backed stablecoins, which regulators warn could destabilize local currencies in developing economies. However, Kenya’s proactive approach seeks to balance innovation with consumer protection and anti-money laundering safeguards.
Kenya’s reputation as a fintech pioneer bolstered by M-Pesa, the mobile money service by Safaricom positions the country to lead the continent in digital finance adoption. By aligning its laws with international best practices from the United States and United Kingdom, Kenya aims to create a secure, transparent environment that encourages responsible crypto growth and global investment.
