Kenya Parliament Passes Crypto Law

Kenya is one step away from enacting its first-ever cryptocurrency law after Parliament passed the Virtual Asset Service Providers (VASP) Bill, 2025, at its third reading on Tuesday.

The legislation now awaits President William Ruto’s signature, which will officially make Kenya one of the first African nations with a comprehensive legal framework for digital assets.

Once signed, the new law will establish the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of the crypto sector. It grants the Treasury Cabinet Secretary powers to issue detailed rules governing stablecoins, tokenisation of real-world assets, trading platforms, capital and solvency standards, and anti-money laundering compliance.

The bill’s passage follows months of intense debate, public consultations, and technical reviews at the committee stage. According to lawmakers, the approved version includes new clauses on licensing and compliance, though the final text has yet to be released to the public.

Industry observers say the move positions Kenya as a regional leader in digital-asset regulation, setting clear standards for capital requirements, consumer protection, and market integrity. It will also open a formal licensing pathway for local and international crypto startups already operating in the country.

“With Parliament’s passage of the VASP Bill, Kenya is one signature away from making regulatory history,” said Chebet Kipingor, Business Operations Manager at Busha Kenya, a subsidiary of Nigerian-based Busha. “It’s a signal that Africa’s most innovative economy is ready to balance innovation with consumer protection, and that progress, not fear, will guide our digital future.”

However, analysts caution that the ultimate impact of the law will depend on how regulators set capital thresholds and compliance requirements. Overly stringent benchmarks could hinder smaller startups and stifle innovation.

The timing of the bill is also politically and economically significant. Kenya’s government faces pressure to tighten financial oversight as it works to exit the Financial Action Task Force (FATF) greylist and meet fiscal targets linked to its now-cancelled IMF Extended Fund Facility (EFF).

Attorney General Dorcas Oduor is currently preparing the final draft for presidential assent. Once approved, the law will mark a milestone in Kenya’s financial regulation history and could reshape Africa’s crypto landscape.