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Is crypto legal in Kenya?

Cryptocurrency is heavily restricted in Kenya.

Eastern Africa · KE · 4 of 9 dimensions sourced

Every value below cites the primary government, central bank, financial regulator, or tax authority. How this is sourced →

Kenya crypto policy at a glance

CBDC status
Cancelled

Stage of the central bank digital currency programme — research, pilot, or launched.

cbdctracker.org ↗ · as of 2018 · confidence: high
Legal status
Restricted

Whether crypto is legal, restricted, or banned for individuals and businesses.

“The Central Bank of Kenya cautions the public against dealing in virtual currencies such as Bitcoin. CBK reiterates that Bitcoin and similar products are not legal tender in Kenya. Banks, MFBs and PSPs are therefore advised not to engage in transactions in virtual currencies or provide services facilitating such transactions.”
Central Bank of Kenya ↗ · as of 2015-12-15 · confidence: high
VASP licensing
Not yet recorded

Whether the jurisdiction licenses crypto/VASP service providers.

Stablecoin rules
Not yet recorded

Rules governing stablecoin and e-money-token issuance.

Tax treatment
Mixed (CGT + income)

How crypto gains are taxed and reported, including OECD CARF participation.

“Income accruing through the use of digital marketplaces, including the trading of cryptocurrencies and other digital assets, is taxable in Kenya in accordance with the provisions of the Income Tax Act and the Value Added Tax Act.”
Kenya Revenue Authority ↗ · as of 2023-06-30 · confidence: low
DeFi treatment
Addressed

How decentralized finance (DeFi) is treated by regulators.

“This case study focuses on decentralised financial technologies (DeFi) in Kenya, examining blockchain-based lending, savings and payments platforms operating outside traditional intermediaries.”
Central Bank of Kenya ↗ · as of 2019-06-01 · confidence: medium
NFT classification
Not yet recorded

Whether NFTs are addressed in regulation.

Mining policy
Not yet recorded

Policy toward crypto mining — permitted, restricted, or banned.

Enforcement intensity
Not yet recorded

Intensity of regulatory enforcement actions against crypto firms.

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