Kenyan Crypto Firms Launch Industry Lobby Ahead of New VASP Rules
More than 50 firms in the digital assets sector in Kenya have formed a unified industry association to engage with regulators ahead of the rollout of the country’s new Virtual Asset Service Providers (VASP) regulatory framework. The move signals a coordinated effort by the sector to help shape licensing rules and ensure the emerging regime supports both innovation and compliance.
The newly launched body, called the Virtual Asset Association of Kenya (VAAK), was recently unveiled at an event in Upperhill, Nairobi. Its establishment comes as the country prepares to implement regulations under the Virtual Asset Service Providers Act, which was assented into law in October 2025 and will govern licensing and oversight of crypto firms.
Speaking at the launch, VAAK Chairman Dr. Peter Onyango said the association welcomed clear rules and looked forward to working constructively with authorities: “The launch of VAAK marks an important milestone for Kenya’s digital asset landscape. As an industry, we fully welcome the development of clear regulations. A predictable and well-balanced framework will protect consumers, improve market integrity, and enable responsible firms to thrive.”
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Under the new legal framework, oversight will be shared between the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). The CBK will regulate payment‑related crypto activities such as stablecoin dealers and custodial services, while the CMA will oversee tokenized assets, trading platforms, and exchanges.
The group’s formation follows months of tension between industry actors and government officials over how best to regulate a fast‑growing sector that until recently operated in a largely unregulated space. The new law will require aspiring Virtual Asset Service Providers (VASPs) to meet licensing conditions such as maintaining a physical office in Kenya, appointing natural‑person directors, segregating customer assets, and complying with enhanced anti‑money‑laundering and data‑protection standards.
Samuel Kariuki, Chief Operating Officer of Kotani Pay, highlighted the industry’s intent to comply with the upcoming regulations once subsidiary rules are finalised, “Kenya has long been recognised as the Silicon Savannah because of our boldness in embracing technology. As VASPs, we are committed to aligning with emerging regulations and applying for licensing once the subsidiary rules are finalised. This will give consumers confidence, attract global investment, and position Kenya as a leader in compliant digital asset innovation.”
