The National Treasury of Kenya has proposed to cut the taxes levied on digital asset transactions from the current 3% to 1.5%, which is set to reduce the cost of transferring assets such as cryptocurrencies and non-fungible tokens(NFT).
As seen in the recent draft Finance Bill 2025:
“In Paragraph 13(In the Third Schedule to the Income Tax Act is amended in Head B, by deleting the words three percent and substituting with the words one point five percent”
This can also increase the adoption of digital assets in the country thus increasing the number of cryptocurrencies users in the country.
Read Also: Kenya Introduces Virtual Assets Bills to Regulate Crypto and the Digital Finance Sector
The Income Tax Act describes digital assets as anything of value that is not tangible, cryptocurrencies, token codes or a number held in digital form and generated through cryptographic means and providing a digital representation of value exchanged.
Digital asset tax was introduced in the Finance Act 2023 and was set at three percent of the gross fair market value of cryptocurrency transactions. Kenya Revenue Authority had estimated the market to be transacting around ksh 2.4 trillion.
Recently, a Virtual Assets Service Providers Bill of 2025 was tabled in the parliament, this was to compel virtual currency exchanges and wallet providers to disclose the owner of cryptocurrencies in a move to rein in tax cheats, criminals and hackers.
