The Central Bank of Kenya (CBK) has formalized regulations for virtual asset service providers through Legal Notice No. 134 of 2026, published on July 22. This marks the first comprehensive licensing framework for cryptocurrency businesses operating in Kenya.

Under the new rules, stablecoin issuers face the highest capital entry barrier, with a minimum paid-up capital requirement of KSh 300 million. They must also maintain liquid capital of at least KSh 60 million or an amount equal to 100% of their current liabilities for a minimum of 30 days, whichever is greater. Additionally, stablecoin issuers are mandated to fully back their coins with reserve assets matching or exceeding the total value of outstanding stablecoins at all times.

Capital and Liquidity Requirements for Other Providers

  • Virtual asset wallet providers must have at least KSh 150 million in paid-up capital.
  • Cryptocurrency exchanges are required to hold a minimum of KSh 100 million in paid-up capital and maintain liquid capital of at least KSh 20 million or 8% of total liabilities.
  • Platforms facilitating Initial Coin Offerings (ICOs) must maintain KSh 20 million in paid-up capital and liquid capital of KSh 4 million or 8% of total liabilities.

Stablecoin issuers must also submit quarterly stress tests on their reserves to the CBK and publish clear redemption policies outlining conditions and timelines for coin redemption.

Regulatory Oversight and Compliance

The regulatory framework divides supervisory responsibilities between the CBK and the Capital Markets Authority (CMA). The CBK oversees stablecoin issuers and virtual asset-to-fiat conversion services, while the CMA supervises cryptocurrency exchanges, ICO platforms, and tokenization activities.

These regulations also apply to foreign firms serving Kenyan customers or benefiting economically from Kenya, regardless of local physical presence. Licensed operators are required to keep transaction records for a minimum of seven years, implement anti-money laundering and cybersecurity measures, and comply with ongoing reporting obligations.

The framework was finalized following a four-month public consultation that began in March 2026. Despite concerns from some crypto firms about high capital thresholds potentially excluding smaller players, the government proceeded with the regulations after further industry engagement.