Kenya's Finance Bill 2026 Puts Crypto Platforms on Notice, Opens Public Comment Window
Kenya's Parliament invited public submissions on its Finance Bill 2026 on May 11, requiring crypto platforms to file annual transaction reports with the tax authority and authorizing Kenya to join international data-sharing agreements targeting cross-border crypto tax evasion. Written submissions are open until May 25, 2026 at 5:00 PM East Africa Time (UTC+3).
The bill, sponsored by Finance Committee Chairperson Kuria Kimani, would compel Virtual Asset Service Providers (VASPs), a category covering exchanges, trading platforms, and intermediaries that handle crypto on behalf of customers, to disclose full user transaction data, reportable persons, and controlling interests to the Kenya Revenue Authority (KRA) each year. Platforms that fail to comply face fines between Ksh 100,000 and Ksh 1 million (roughly $770 to $7,700 USD), with up to three years in prison for those who file false information.
Kenya would also gain authority to enter international agreements for automatic exchange of virtual asset data, a move aimed at taxing activity that currently moves through offshore platforms.
The reporting requirements follow a years-long effort to formalize Kenya's crypto sector. The country introduced a 3% tax on gross crypto transaction values in 2023, a measure the industry criticized as unworkable for high-frequency and low-margin peer-to-peer trading. That levy was scrapped in 2025 and replaced with a 10% excise duty applied only to service fees charged by platforms, a narrower and more targeted approach. The VASP Act (Act No. 20 of 2025), which took effect on November 4, 2025, then established the first dedicated legal framework for crypto businesses, requiring registration with the Central Bank of Kenya, local physical offices, Kenyan board representation, and Know Your Customer (KYC) compliance.
The Finance Bill 2026 adds a reporting layer on top of that structure. Analysts note that the bill moves Kenya closer to the FATF Travel Rule standard and the OECD's Crypto-Asset Reporting Framework (CARF), both of which are international compliance benchmarks for tracking crypto flows. That trajectory aligns with a January 2025 IMF Technical Assistance Report on Kenya's virtual asset sector, which explicitly recommended "a clear legislative framework, inter-agency coordination, and consumer protection measures."
Kenya's regulatory choices carry real stakes. The country received an estimated $19 billion in crypto inflows between July 2024 and June 2025, and more than six million Kenyans are estimated to hold or use cryptocurrency, making it the largest crypto market in East Africa.
The majority of that activity runs through mobile devices, according to industry analysts, which makes a separate provision in the same bill worth watching closely.
The bill proposes a 25% excise duty on mobile phones at the point of activation or first use. Cabinet Secretary for Finance Mbadi has argued the levy consolidates existing charges without restricting smartphone access, but pan-African law firm Bowmans warned in early May that the broader set of proposals "could harm business operations and competitiveness, stifle investment in Kenya's economy, push operational costs upward for businesses, and create compliance challenges for taxpayers."
A steep phone tax, if enacted, would directly raise the cost of the hardware most Kenyans use to access crypto wallets, remittance apps, and mobile money platforms.
The Finance Bill 2026 also proposes expanding Kenya's definition of a "royalty" to include fees from payment networks, card schemes, clearing systems, and digital processing platforms. Bowmans has flagged this change as a compliance concern, warning that it could draw a wider range of fintech operators into the tax net.
Reflecting the bill's broader fiscal scope beyond the crypto sector, corporate tax for non-resident companies is proposed to drop from 37.5% to 30%, and the individual tax filing deadline would move from June 30 to April 30.
Running parallel to the Finance Bill is a separate but related process: Draft VASP Regulations released by the National Treasury in March 2026 set out licensing structures, stablecoin reserve requirements (at least 30% held in segregated accounts at Kenyan commercial banks), and transaction levies (0.05% per counterparty for token platforms; 0.5% on successful initial virtual asset offerings). Under the draft regulations, the Central Bank of Kenya would oversee stablecoin issuers and payment-rail firms, while the Capital Markets Authority would oversee exchanges, brokers, and tokenization platforms. Those draft regulations closed for public comment on April 10, 2026.
The political backdrop adds urgency to the public participation window. Kenya's 2024 Finance Bill was withdrawn entirely after youth-led "Occupy Parliament" protests resulted in demonstrators storming the legislature, marking one of the most significant episodes of civic mobilization in recent sub-Saharan African history.
Parliament is constitutionally required under Article 118(1)(b) to facilitate public participation, meaning the May 25 deadline is not a formality. The Virtual Asset Association of Kenya (VAAK), an industry body formed in December 2025 with more than 50 member firms, has a practical window to submit coordinated commentary before the bill moves to committee review.
For operators outside Kenya, the bill signals a broader regional shift. Observers note that Uganda, Tanzania, Rwanda, and Ethiopia have no comparable dedicated crypto legislation, and analysts suggest the framework Kenya builds is likely to influence regulatory thinking across Anglophone East Africa.
Submissions can be filed physically at Parliament Buildings in Nairobi or through official parliamentary electronic channels.