Virtual assets are reshaping Kenya’s financial landscape at a pace few anticipated, with the appetite for digital currencies growing significantly, transforming how money is stored, sent, and spent. 

Once the preserve of fringe tech enthusiasts, cryptocurrency (crypto) is becoming a mainstream financial tool for Kenyans seeking speed, efficiency, and a hedge against volatile local currency trends.  

This has seen Kenya being ranked 21st globally and third in Africa in cryptocurrency adoption, just ahead of South Africa and Nigeria, according to the latest global crypto adoption index. 

As of 2025, data from Statista estimates there are approximately 733,300 cryptocurrency users in the country—an astronomical rise from just 10,400 in 2017.  

But in the absence of clear regulation, the sector has been a fertile ground for scams, Ponzi schemes, and money laundering, creating unease among both users and potential investors.

But a new law—The Virtual Asset Service Providers Bill, 2025— which is currently under review in Parliament, could help change the narrative.  

Developed by a technical working group composed of the National Treasury, the Capital Markets Authority (CMA), and the Central Bank of Kenya (CBK), the bill aims to bring order to the thriving but largely unregulated virtual asset market. 

In anticipation of its enactment, the Virtual Assets Chamber (VAC), backed by major players including global exchange platform Binance, has conducted stakeholder training and legislative workshops aimed at aligning Kenya’s digital asset infrastructure with international standards. 

For Allan Kaikai, Director at VAC, the bill represents a turning point. “Getting the legislation right positions Kenya as Africa’s crypto capital and financial hub,” he says.  

“We’ll see a rise in crypto exchanges, wallets, and service providers obtaining licenses. This creates a springboard for Kenyan youth and innovators to access digital assets such as Bitcoin, Ethereum, and stablecoins like USDC and USDT.” 

Dealing with fraud 

Importantly, the bill introduces standards that could mitigate the sector’s most notorious challenge: fraud.  

By enforcing strict licensing, transparent auditing, and mandatory regulatory reporting, the bill aims to eliminate fly-by-night operators and protect consumers from financial harm. 

Kaikai notes that the law proposes solid legal foundations for anyone wishing to set up a virtual asset exchange in Kenya, ensuring only credible players enter the market. 

The proposed regulatory structure will split oversight duties between the CBK and CMA. 

The CBK will handle products linked to monetary policy and financial stability—such as stablecoins—while the CMA will supervise wallets, exchanges, and investment products, ensuring clear accountability based on the nature of each offering. 

Tony Olendo, chairperson of VAC, sees even wider economic implications.  

He believes that by introducing a licensing system, Kenya will attract more foreign direct investment and unlock higher startup valuations. “Licensing is an asset,” he says. 

“It de-risks the market and assures global investors that there’s legal protection for their capital. This will not only expand the domestic crypto market, but also turn Kenyan startups into global players.” 

For the average user, the shift promises more than just legal clarity—it offers safety.  

With enforceable consumer protections, the crypto space in Kenya could soon become a trusted and secure environment for wealth creation and financial inclusion.