Kenyan lawmakers have approved a bill to regulate digital assets, including cryptocurrencies, in a bid to attract investments and bring clarity to the fast-growing sector.
Kuria Kimani, Chairman of the National Assembly’s Finance Committee, confirmed that legislators passed the Virtual Asset Service Providers Bill last week. The move aims to address long-standing concerns over the absence of a clear regulatory framework for the digital asset industry.
Once signed by President William Ruto, the legislation will position Kenya alongside South Africa as one of the few African nations with formal laws governing the crypto and digital asset space.
Under the new law, the Central Bank of Kenya will act as the licensing authority for the issuance of stablecoins and other digital assets. Meanwhile, the Capital Markets Authority will oversee operators of crypto exchanges and trading platforms.
Also Read:Â Kenya to Host Landmark AI Tech Summit
Kimani noted that the legal clarity is expected to attract major global players such as Binance and Coinbase, following previous discussions between those exchanges and the Kenyan government.
“We are hoping that Kenya can now be the gateway into Africa,” Kimani said. “Many young people between 18 and 35 are using virtual assets for trading, payments, and investment.”
Kenya’s law draws inspiration from regulatory models in the United States and Britain, as authorities worldwide work to prevent the misuse of digital systems for illicit activities.
The East African country is already recognised as a financial innovation hub, with its M-Pesa mobile money platform operated by Safaricom enabling millions to transfer, save, and invest digitally.
