Kenya’s Parliament has taken a groundbreaking step toward embracing digital finance by passing the Virtual Asset Service Providers (VASP) Bill, a landmark piece of legislation that aims to regulate cryptocurrencies, stablecoins, and other digital-asset services. The bill, which now awaits President William Ruto’s approval, is designed to bring clarity to the country’s crypto landscape, attract foreign investment, and safeguard consumers in one of Africa’s fastest-growing tech hubs.
According to Reuters, lawmakers drafted the legislation to eliminate uncertainty around digital-asset activities and establish a framework that balances innovation with oversight. Kuria Kimani, who heads the Finance Committee in Kenya’s National Assembly, emphasised that this move positions Kenya alongside South Africa as one of the few African nations with comprehensive crypto regulations. “We are hoping that Kenya can now become the gateway into Africa for digital asset businesses,” Kimani said. “The majority of young people between 18 and 35 are already using virtual assets for trading, payments, and investments. The act provides much-needed regulatory clarity for investors and innovators.”
Under the new framework, the Central Bank of Kenya will license stablecoin issuers and virtual-asset product providers, while the Capital Markets Authority (CMA) will oversee cryptocurrency exchanges and trading platforms. This dual regulatory approach is intended to strengthen transparency, ensure accountability, and promote the responsible growth of the digital-asset market.
The legislation comes as global regulators debate how to handle the rise of dollar-pegged stablecoins, which some fear could undermine local currencies in developing economies. Kenya, however, sees regulation as a way to harness technological advancement rather than resist it, viewing the crypto sector as a key driver of innovation in its thriving fintech industry.
The country’s enthusiasm for digital assets is already evident at the grassroots level. In August 2025, Nairobi-based startup AfriBit Africa facilitated over 2,000 Bitcoin transactions in Kibera, one of the city’s largest informal settlements. Despite Kenya’s advanced mobile-money ecosystem, more than 80% of Kibera’s 250,000 residents remain unbanked. AfriBit’s initiative provides cryptocurrency-based grants to informal workers, trains women and youth in creative income generation through upcycling, and enables over 40 local businesses to accept Bitcoin payments.
“We’re not here to preach Bitcoin,” said AfriBit’s founder, Mdawida. “We’re here to show that even the most ignored groups can start a financial revolution with tools they really own.”
With this new legislation, Kenya is signalling its intent to lead the continent in responsible crypto innovation—bridging regulation and inclusion while empowering a new generation of digital entrepreneurs.
