Kenya is moving to tighten oversight of its growing cryptocurrency market through new rules proposed under the Finance Bill 2026 now before parliament. The measures would require crypto platforms to identify users and report transaction activity to the Kenya Revenue Authority.
Under the proposal, cryptocurrency exchanges and virtual asset service providers would file annual reports showing customer identities, wallet activity, and transaction records.
The bill would also allow Kenyan authorities to share crypto-related tax information with foreign governments as regulators around the world tighten oversight of the digital asset sector.
Kenya expands crypto oversight
The proposed law marks one of Kenya’s strongest efforts yet to bring cryptocurrency trading under tighter government control. Authorities say the crypto market has expanded rapidly outside the traditional banking system. Besides improving tax collection, regulators also want better oversight of suspicious financial activity linked to digital asset transactions.
Under the draft legislation, crypto platforms would have to submit customer information directly to the Kenya Revenue Authority. The bill states, “Each virtual asset service provider shall file an information return with the Commissioner.”
The requirement would apply to Kenyan users as well as entities linked to reportable controlling persons. As a result, crypto exchanges operating in Kenya could face compliance rules similar to those applied to banks and other financial institutions.
Furthermore, the draft policy imposes punitive measures on any form of misreporting. For instance, a company found guilty of submitting incorrect data might be subjected to a fine of KES 100,000 per incorrect datum. This fine may even go hand-in-hand with imprisonment for up to three years.
Global rules shape Kenya’s crypto policy
The crypto regulations drafted by Kenya are part of the broader attempt made globally to regulate trading in cryptocurrencies. The proposed regulations have been largely inspired by the Organisation for Economic Co-operation and Development (OECD) Cryptoasset Reporting Framework that began operating in January 2026.
The framework requires participating nations to gather and exchange data about crypto transactions, putting pressure on crypto exchanges to know their customers and report on their activities.
Over 75 nations have so far signed on to adopt the reporting criteria, including Singapore, Switzerland, Hong Kong, and the UAE. Over 40 countries are also expected to start exchanging crypto tax information from 2027.
Kenyan authorities argue the tougher measures reflect the rapid growth of the local crypto market. The Kenya Revenue Authority estimates that crypto transactions reached nearly KES 2.4 trillion between 2021 and 2022. That amount represented almost one-fifth of the country’s gross domestic product during the period.
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