Felix Koskei, the Chief of Staff and Head of Public Service, received a briefing on the operationalisation of the Virtual Asset Service Providers (VASP) Act, 2025, and the associated Draft Virtual Asset Service Providers Regulations, 2026.
The meeting included key leadership from the Nairobi International Financial Centre (NIFC) and the Kenya National Treasury, specifically represented by NIFC CEO Daniel Mainda and Ronald Inyangala, Director of the Financial and Sectoral Affairs Department.
The update signals that the Kenyan government is now in the final stages of implementing a comprehensive crypto regulatory framework. This journey began when President William Ruto signed the VASP Act, 2025, into law, establishing the nation’s first legal structure for the cryptocurrency industry.
The framework is designed to create a clear licensing process and foster a safe, transparent, and well-regulated digital asset sector. The push for regulation was driven by a national risk assessment that identified critical gaps in several areas, including legal and regulatory oversight, consumer protection and risk management, and public awareness and supervision.
Addressing these shortcomings is essential to ensuring a safer and more effective regulatory environment. The new measures are intended to safeguard financial stability, strengthen market integrity, and combat money laundering and terrorism financing, all while supporting responsible innovation. Once the regulations are officially gazetted, crypto exchanges, wallet providers, custodians, and brokers will have much-needed clarity regarding licensing requirements, compliance obligations, and anti-money laundering (AML) controls.
Stakeholders have been given a clear timeline, with a transition deadline of November 4, 2026, by which all virtual asset service providers must comply with the new regulatory requirements.
“The Draft Virtual Asset Service Providers Regulations, 2026, are expected to be finalised soon. I encouraged all stakeholders to take part in the process so that we can develop a balanced regulatory framework that protects the public, builds confidence in the sector and supports innovation,” Felix Koskei said.
