Kenya Passes Bill to Regulate Crypto as Regional Momentum Grows
Kenya's parliament has passed the Virtual Asset Service Providers Bill 2025, aiming to create a regulatory framework for cryptocurrency in the country. The bill, which awaits President William Ruto’s signature, designates the Central Bank of Kenya and the Capital Markets Authority as key regulators. The Central Bank will oversee payment processors handling transactions between fiat and virtual currencies, while the Capital Markets Authority will regulate brokers, investment advisors, and digital asset managers. The move reflects increasing crypto activity in Kenya, especially among young people, and comes as the country tries to catch up with regional leaders like South Africa, which established crypto regulations two years earlier. Kenya ranked fourth in Africa by crypto assets received between July 2024 and June 2025, totaling nearly $20 billion. Growing interest in digital assets has been intensified by financial distrust and nationwide protests, with crypto seen as an alternative by the youth. Kenya’s population is familiar with digital financial tools, with most households using mobile money apps like M-PESA. Privacy concerns previously led to a clampdown on Worldcoin’s activities in the country.
