Kenya’s National Treasury finalized capital rules that will determine which cryptocurrency businesses can legally operate in the country, and the clock is now running for firms to comply or leave.
Under Legal Notice No. 134 of 2026, stablecoin issuers must hold a minimum paid-up capital of up to Sh300 million, a reduction from the Sh500 million originally proposed in draft regulations published in March. The change lowers what had been one of the biggest barriers to entry for firms hoping to operate in Kenya’s fast growing digital assets market. Other license categories face lower thresholds: crypto wallet providers require Sh150 million, while virtual asset exchanges must maintain at least Sh100 million.
The rules were finalized after the Treasury received the loudest industry pushback over the minimum capital figures when the draft was first published. The Virtual Assets Association of Kenya had warned regulators that steep charges would deter investment, arguing that Kenya needed to reconsider its paid up capital requirements, license fees and compliance obligations to attract credible global players.
Despite the concession, the compliance timeline remains tight. Existing operators have until 4 November 2026 to comply, a date drawn from the VASP Act’s provision giving anyone already offering virtual asset services one year from the law’s commencement to meet the new requirements.
Oversight of the sector is split between two regulators: the Central Bank of Kenya supervises wallet providers, payment processors and stablecoin issuers, while the Capital Markets Authority oversees exchanges, brokers, investment advisers and token issuance platforms. The rules also apply to foreign firms serving Kenyan customers or deriving economic benefit from the country, even without a local physical presence.
With roughly three months left before enforcement, the outcome will test whether Kenya can regulate one of Africa’s largest crypto markets without pushing its own innovators offshore.
