Kenya might soon become the benchmark for crypto regulation in Africa after Parliament passed the Virtual Asset Service Providers (VASP) Bill, 2025, in its third reading.
The only step left is President William Ruto’s assent, which would turn it into law and set the stage for one of the continent’s most comprehensive crypto frameworks.
The bill gives joint oversight of virtual assets to the Central Bank of Kenya and the Capital Markets Authority. It also empowers the Treasury CS to issue regulations on stablecoins, tokenisation of real-world assets, trading platforms, capital and solvency requirements, and anti-money laundering compliance.
Months of debate and public consultations shaped the final draft, which now carries stricter compliance and licensing requirements, though the updated text has not yet been released publicly.
For industry players, the law could be a turning point. Local and global firms such as Luno, Busha, KotaniPay, Fonbnk, Swypt and Binance would now have a legal pathway to operate in Kenya under a licensing regime.
It would bring clarity to a sector often described as operating in a regulatory grey zone. Chebet Kipingor, operations lead at Busha Kenya, summed up the moment by saying that Kenya is one signature away from making regulatory history.
Still, the details will matter. Questions around how capital adequacy will be defined, how customer assets will be safeguarded, and what disclosure requirements will look like are critical.
Too much red tape could discourage startups, while clear and fair rules could make Kenya a hub for crypto innovation on the continent.
Beyond the industry, the bill ties into wider financial reforms. Kenya has been working to meet international standards to exit the Financial Action Task Force greylist and fulfill commitments tied to its IMF Extended Fund Facility programme.
