Kenya Parliament Approves First Crypto Regulatory Bill

Kenya’s parliament has approved the Virtual Asset Service Provider (VASP) Bill, poised to become law with presidential assent. This move positions Kenya as the second African country to regulate digital assets, following South Africa’s example.

Kenya’s parliament has approved the Virtual Asset Service Provider Bill on October 9, 2025, signaling a significant step in regulating digital assets in Africa. The bill now awaits President William Ruto’s signature to become law.

This legislative move aims to provide a clear framework for digital assets, potentially boosting investment and setting a regional precedent.

The Virtual Asset Service Provider Bill introduces Kenya’s inaugural legislative framework for digital currencies. Kuria Kimani, Chairman of the Finance Committee, stated, “We are positioning Kenya to be the second African country after South Africa to establish clear regulations for the digital asset sector. The bill addresses legal uncertainty and helps unlock local and global investment.” The Central Bank of Kenya will license stablecoin issuers and other digital currency providers.

Kenya positions itself as the second African nation after South Africa to implement such regulations. President William Ruto must sign the bill for it to become law. This legislative step could strengthen Kenya’s financial sector by ensuring greater clarity and legal oversight.

Industry stakeholders anticipate a surge in investments and potential business growth in the digital asset sector. Bitcoin and Ethereum regulations will be clarified under the new framework. The bill also expects to navigate through compliance measures previously seen in South Africa and Nigeria.

Though the Kenyan crypto community waits for further clarity on the bill’s operational requirements, many express optimism. Historical precedents in Africa have shown an uptick in trading volumes post regulatory clarity, though compliance demands often follow. Major digital assets, including BTC, ETH, USDT, and USDC, will be affected, with potential on-chain impacts anticipated following the bill’s full enactment.