Is Crypto Legal In Kenya?

Cryptocurrencies are not illegal in Kenya, but they are not recognized as legal tender and remain largely unregulated. The Central Bank of Kenya issued a public notice in December 2015 stating that virtual currencies such as Bitcoin are not legal tender and no entity is licensed to offer money remittance services using virtual currency (1). In October 2025, Kenya's Parliament passed the Virtual Asset Service Providers Bill to establish a formal regulatory framework for digital assets, positioning Kenya as one of the first African nations to formalize cryptocurrency oversight (2).

Under the new legislation, the Central Bank of Kenya will be responsible for licensing stablecoins and other virtual assets, while the Capital Markets Authority will oversee cryptocurrency exchanges and trading platforms (2). The bill awaits President William Ruto's signature to become law and aims to provide legal clarity, boost investments in the fintech sector, and protect consumers (2). Prior to this development, Kenya had no crypto-specific regulations, and authorities relied on existing financial laws to address cryptocurrency activities (1).

"This is to inform the public that virtual currencies such as Bitcoin are not legal tender in Kenya and therefore no protection exists in the event that the platform that exchanges or holds the virtual currency fails or goes out of business."

The International Monetary Fund recommended in its December 2024 technical assistance report that Kenya conduct comprehensive market analysis and implement effective cooperation mechanisms across relevant authorities to facilitate supervision of the crypto asset market (2). The anticipated legal framework is expected to draw more investments into Kenya's digital asset sector, with potential interest from major cryptocurrency exchanges, and establish the country as a leading hub for crypto in Africa (2). Operators will be subject to strict obligations including establishing physical offices in Kenya, complying with Know Your Customer regulations, and undergoing independent IT audits (2).

Source:
https://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf
https://www.imf.org/-/media/Files/Publications/TAR/2025/English/tarea2025001-print-pdf.ashx

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.