Parliament Passes Landmark Crypto Law
Lawmakers have passed the Virtual Asset Service Providers Bill, 2025, creating the country’s first comprehensive framework for cryptocurrency businesses..
✨ Key Highlights
Kenya's Parliament has passed the Virtual Asset Service Providers Bill, 2025, establishing the country’s first comprehensive regulatory framework for cryptocurrency businesses. This landmark legislation aims to license and supervise crypto operations while avoiding the creation of a new, standalone regulatory body and integrating supervision under existing institutions.
- The bill guts a controversial provision that would have given a Binance-linked lobby group a seat on the national regulator, placing supervision under Central Bank of Kenya (CBK) and Capital Markets Authority (CMA).
- All licensed virtual-asset providers must maintain a physical office in the country and appoint a board of at least three natural-person directors to curb shell operations.
- Violations can lead to fines of up to KSh 25 million or five years in prison, with existing operators having a 12-month grace period to comply.
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Kenya Plans Privatization of KPC and Passes New Cryptocurrency Law - October 2025
The Kenyan government plans to sell a 65 percent stake in the Kenya Pipeline Company (KPC), with the Privatization Commission issuing an official notice following approvals from the National Assembly, Treasury, and the Cabinet. The company is set for privatization through an Initial Public Offering (IPO) on the Nairobi Securities Exchange by March 31, 2026. This move is intended to allow public share ownership and raise funds for the 2025/2026 budget. Separately, Kenya's Parliament passed the Virtual Asset Service Providers Bill, 2025. This landmark legislation establishes the country's first comprehensive regulatory framework for cryptocurrency businesses. The law aims to license and supervise crypto operations by integrating them under existing institutions, rather than creating a new regulatory body.
