12 chapters with 56 sections
Kenya has moved from an emerging, policy-led approach to a standalone statutory framework for virtual assets. The Virtual Asset Service Providers Act, No. 20 of 2025 (the VASP Act), commenced on 4 November 2025 and establishes the legal basis for licensing and regulating virtual asset service providers operating in Kenya. The Virtual Asset Service Providers Regulations, 2026 were published on 22 July 2026 and are now law, providing the detailed rules on licensing, governance, capital, cybersecurity, consumer protection, market conduct, tokenisation, stablecoins, advertising and enforcement.
Virtual assets are not legal tender in Kenya and the Kenyan shilling remains the official currency. However, the sector is no longer regulated only indirectly through general financial laws. The VASP Act expressly recognises and regulates a defined category of virtual asset activities, with the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) acting as the principal regulators according to the activity undertaken. Existing providers are in a transitional implementation period and are required to comply with the Act by 4 November 2026. The practical focus has therefore shifted from whether Kenya will regulate virtual assets to how the new licensing and supervisory framework will be implemented.
