Explained: Kenya’s Virtual Asset Service Provider (VASP) Bill
The crypto bill in Kenya, first tabled in 2024:
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Assigns administration authority to the CMA (Capital Markets Authority) for trading and investment activities and the Central Bank of Kenya (CBK) for custody and payment operations.
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Empowers the Treasury Cabinet Secretary to issue comprehensive and vivid licensing regulations on capital and solvency standards, tokenisation of real-world assets, stablecoins, and trading platforms.
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Encompasses strict Counter-Terrorism Financing (CTF) and Anti-Money Laundering (AML) measures that align with the Financial Action Task Force (FATF) standards.
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Additionally, all Virtual Asset Service Providers (VASPs) must implement Know Your Customer (KYC) procedures and report any suspicious transactions to the relevant authorities.
Kenya’s virtual assets sector is rapidly growing, with an estimated 4.5 million people (about 13% of the population) involved in cryptocurrency-related activities. As such, the Bill’s approval, coming months after public consultation and legislative debate, will establish a consistent legal framework that was previously absent.
The Attorney General (AG), Dorcas Oduor, is now drawing up the final version for President William Ruto’s assent. The bill, approved at its third reading, reportedly includes new compliance and licensing measures; however, the updated version remains unavailable to the public.
If signed into law, Kenya will join South Africa and Nigeria as one of the few African countries with a structured legislative framework for digital finance.
Market Reactions to Kenya’s Crypto Law
Once enacted, the bill will allow local and international crypto startups — including Busha, Binance, Fonbnk, Luno, Swypt, and KotaniPay — to obtain formal licenses to operate in Kenya.
Chebet Kipingor, Business Operations Manager for Busha Kenya, a subsidiary of the Nigerian-based crypto startup, said: ‘With Parliament’s passage of the VASP Bill, Kenya is one signature away from making regulatory history. 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.’
President Ruto expects to receive the final draft of the Virtual Asset Service Providers (VASP) Bill, 2025, in the coming weeks for approval. Once signed, Kenya will become one of the first African countries to establish a comprehensive legal framework for digital assets formally. This move could accelerate the adoption of cryptocurrency payments in Kenya’s iGaming industry, particularly among top online casinos that accept M-Pesa.