Crypto Bill Passed by Kenya’s Parliament, Awaits Presidential Assent
Kenya is on the cusp of enacting its first-ever cryptocurrency law after Parliament passed the Virtual Asset Service Providers (VASP) Bill, 2025 at its third reading on Tuesday. The legislation now awaits President William Ruto’s assent, a final step that could make Kenya one of Africa’s first countries with a comprehensive regulatory framework for digital assets.
Originally introduced in 2024, the VASP Bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of the country’s growing digital asset ecosystem. It also empowers the Treasury Cabinet Secretary to issue detailed regulations on key areas such as stablecoins, tokenisation of real-world assets, trading platforms, capital and solvency standards, and anti-money laundering compliance.
The bill’s passage follows months of legislative debate, committee reviews, and public consultations. Attorney General, Dorcas Oduor is now preparing the final version for presentation to the president. Lawmakers say the latest draft includes enhanced licensing and compliance clauses, though the updated text has not yet been made public.
If signed into law, the VASP Bill would provide the most structured legal framework for virtual assets in East Africa. It would establish clear licensing and operational requirements for both local and international crypto startups active in Kenya — including Luno, Busha, KotaniPay, Fonbnk, Swypt, and Binance.
Read Also: Kenya Introduces Virtual Assets Bill to Regulate Crypto and the Digital Finance Sector
However, industry observers caution that the strength and flexibility of the upcoming Treasury sub-regulations will ultimately determine the bill’s impact. Overly strict capital or compliance requirements could make it difficult for startups to remain competitive or operate profitably in the Kenyan market.
The legislation also carries broader financial implications. Kenya remains under scrutiny from the Financial Action Task Force (FATF) and is working to strengthen financial oversight as part of its efforts to exit the global watchdog’s “greylist.” It also aligns with fiscal reform commitments linked to Kenya’s recently cancelled IMF Extended Fund Facility (EFF).
President Ruto is expected to receive the final draft within the coming weeks. His signature would place Kenya among the first African nations to bring digital assets under formal regulation and signaling a new era of legitimacy for the region’s crypto industry.
