Kenya Poised to Make Crypto History: VASP Bill Awaits Presidential Assent

Kenya is on the brink of a historic milestone in financial innovation. Parliament has officially passed the Virtual Asset Service Providers (VASP) Bill, 2025, marking the country’s first-ever legal framework for cryptocurrency and digital assets. The bill now awaits President William Ruto’s signature, a final step that will position Kenya among the first African nations to regulate the crypto sector comprehensively.

Dual Oversight by CBK and CMA

Once enacted, the new law will empower the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of Kenya’s crypto ecosystem. This dual oversight model aims to create a balanced regulatory environment—one that encourages innovation while ensuring market stability and investor protection.

The National Treasury Cabinet Secretary will also gain authority to issue detailed regulations on:

• Stablecoins and tokenization of real-world assets
• Crypto trading platforms and exchanges
• Capital and solvency standards
• Anti-money laundering (AML) and counter-terrorist financing (CTF) compliance

The Journey to the VASP Bill

The VASP Bill’s passage follows months of public consultations, expert reviews, and parliamentary debate. Lawmakers confirmed that the final version includes updated provisions on licensing, compliance, and consumer protection, although the complete text is yet to be made public.

According to industry observers, the legislation will formalize the crypto economy, giving both local and international startups a clear licensing pathway and compliance framework.

“With Parliament’s passage of the VASP Bill, Kenya is one signature away from making regulatory history,” said Chebet Kipingor, Business Operations Manager at Busha Kenya. “It’s a signal that Africa’s most innovative economy is ready to balance innovation with consumer protection—where progress, not fear, guides our digital future.”

Why It Matters

Kenya has long been recognized as a fintech and mobile money leader, thanks to innovations like M-Pesa. The VASP Bill extends that reputation into the Web3 era, positioning Kenya as a regional hub for blockchain and crypto innovation.

By introducing a structured framework for virtual assets, Kenya is setting clear standards for:

• Market integrity
• Capital adequacy
• Investor and consumer safeguards

This could attract major players in the digital asset industry while reducing the risks of unregulated operations.

The Road Ahead

Experts warn that the bill’s true impact will depend on how the CBK and CMA enforce the rules. If capital thresholds or compliance demands are set too high, smaller startups may struggle to participate—potentially stifling innovation instead of fostering it.

Moreover, the legislation comes at a critical moment. The Kenyan government is under pressure to strengthen financial oversight as it seeks removal from the Financial Action Task Force (FATF) greylist and to meet fiscal goals tied to its (now-cancelled) IMF Extended Fund Facility (EFF).

Next Steps

Attorney General Dorcas Oduor is currently finalizing the bill for presidential assent. Once signed, the VASP Act will take effect—ushering in a new era for Kenya’s financial markets and setting a benchmark for the future of crypto regulation across Africa.