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Kenya is set to make regulatory history with the passage of the Virtual Asset Service Providers (VASP) Bill, 2025, which has successfully scaled its third reading in Parliament and now awaits President William Ruto’s assent to become law. Once signed, the legislation will make Kenya one of the first African nations to establish a comprehensive legal framework for digital assets.
Introduced in 2024, the bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA)as joint regulators of virtual asset activities. It also empowers the Treasury Cabinet Secretary to issue detailed regulations governing stablecoins, tokenisation of real-world assets, digital trading platforms, capital and solvency standards, and anti-money laundering (AML) compliance.
The legislation’s passage follows months of public consultation and legislative debate. According to officials, the final draft—currently being prepared by Attorney General Dorcas Oduor—includes enhanced compliance and licensing provisions, though the updated text has yet to be made public.
Once enacted, the law will introduce one of Africa’s most structured crypto regulatory regimes, setting clear capital adequacy, solvency, and consumer protection requirements for operators. It will also establish a formal licensing framework for both local and foreign crypto firms such as Luno, Busha, KotaniPay, Fonbnk, Swypt, and Binance, which are already active in Kenya’s growing digital asset ecosystem.
“With Parliament’s passage of the VASP Bill, Kenya is one signature away from making regulatory history,” said Chebet Kipingor, Business Operations Manager at Busha Kenya, a subsidiary of the Nigeria-based crypto exchange. “It’s a signal that Africa’s most innovative economy is ready to balance innovation with consumer protection—and that progress, not fear, will shape our digital future.”
Analysts, however, note that the effectiveness of the framework will depend on the Treasury’s forthcoming sub-regulations, which will define key elements such as capital requirements, custody standards, and disclosure obligations. These details will determine whether Kenya cements its status as a hub for digital asset innovation or drives startups to relocate to less restrictive markets.
The bill’s timing also carries broader fiscal and geopolitical significance. Kenya’s government faces increasing pressure to strengthen financial oversight as part of efforts to exit the FATF greylist and realign fiscal reforms following the cancellation of its IMF Extended Fund Facility (EFF) earlier this year.
President Ruto is expected to receive the final version of the bill within the coming weeks—marking the final step toward Kenya’s first comprehensive cryptocurrency law and a defining moment in Africa’s digital finance evolution.
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