Kenya Launches Virtual Assets Association to Drive Responsible Growth Under New Regulatory Framework
Kenya’s virtual assets sector has taken a decisive step toward structured governance and industry maturity with the formal establishment of the Virtual Assets Association of Kenya (VAAK). The non-political, non-profit organisation has been created to promote responsible growth, professionalism, and innovation across the country’s rapidly expanding digital asset ecosystem.
VAAK’s formation follows the implementation of the Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025), a landmark law that officially brings Kenya’s virtual assets sector under regulatory oversight. The Act designates both the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) as the primary regulators responsible for licensing, supervising, and overseeing Virtual Asset Service Providers (VASPs) in the country.
By establishing VAAK, industry players now have a unified platform designed to complement the new regulatory framework and strengthen engagement between innovators, service providers, and regulators.
VAAK aims to create a collaborative ecosystem that aligns innovation with consumer protection, market integrity, and national digital-economy aspirations. The Association will prioritise four key pillars:
- Representation & Advocacy: Serving as the primary liaison between industry participants and regulators, that is CMA, CBK, and other authorities, to ensure industry perspectives are clearly articulated.
- Industry Development: Supporting standards, best practices, and responsible innovation in trading, custody, advisory, tokenization, stablecoins, and blockchain applications.
- Education & Awareness: Advancing public knowledge of virtual assets and the digital economy through training, research, and outreach.
- Societal Impact: Promoting financial literacy and community-based initiatives that broaden access to digital financial opportunities.Leadership Perspective: A Moment of Opportunity
In his remarks during the Association’s unveiling, Dr. Peter Onyango, the Founding Chairperson of VAAK, emphasised the importance of the moment and Kenya’s long-standing reputation for digital financial innovation.
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“Kenya has always been a pioneer in digital finance. With the new regulatory framework now in place, we have a unique opportunity to build a mature, well-governed, and globally competitive virtual assets industry. VAAK will champion collaboration, transparency, and responsible innovation, ensuring that this sector grows in a way that protects consumers, empowers businesses, and positions Kenya as a continental leader.”
VAAK has opened its membership to a wide range of stakeholders shaping Kenya’s virtual assets and blockchain landscape, including:
- Licensed Virtual Asset Service Providers (VASPs)
- Blockchain innovators
- Fintech companies
- Technology developers
- Advisory professionals, and
- other stakeholders aligned with the Association’s mission.
VAAK is expected to play a pivotal role in guiding the sector’s growth, strengthening compliance culture, increasing consumer confidence, and ensuring Kenya continues to lead Africa’s fintech evolution.
Source: Bitcoin Kenya
