Kenya is once again leading the way in digital finance in Africa.
The country’s new 2025 Virtual Asset Service Providers (VASP) Bill is designed to reshape cryptocurrency regulation, offering clarity, consumer protection, and opportunities for startups, SMEs, and international investors.
The VASP Bill introduces Kenya’s first comprehensive framework for cryptocurrency service providers. Licensed by the Capital Markets Authority and the Central Bank of Kenya, the law sets minimum capital requirements and operational standards, helping legitimize virtual asset services and creating a safer environment for investors.
According to Lisa Wanjiru, Chief Operating Officer at crypto startup GoChapaa, the new law finally provides the clarity businesses have been waiting for.
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“We now have clarity on the regulatory framework and the operational requirements for the sector,” she said. “This provides greater confidence in how we work with banks, regulators, and other government institutions. Overall, regulation is expected to open the market to more startups and global players, while also creating new opportunities across technology, compliance, security, and customer support functions.”
The legislation aligns with global best practices, including guidance from the Financial Action Task Force (FATF). It strengthens know-your-customer (KYC) and anti-money laundering (AML) requirements, ensuring that licensed VASPs maintain robust customer due diligence, detailed transaction records, and monitoring of suspicious activity. This is aimed at creating a trustworthy digital finance ecosystem for users, banks, and regulators alike.
For Kenya’s small and medium enterprises—which make up over 90% of the country’s businesses—the VASP Bill opens new doors. SMEs can now accept payments in digital assets, reducing high processing fees and improving access to international markets. Faster and cheaper cross-border payments are also possible, boosting cash flow for importers and exporters.
“The government’s move puts Kenya ahead in the region,” Wanjiru said. “People and firms now know what’s allowed, so they can start building without fear. Kenyans need cheaper, faster, and more reliable ways to move money, and this law makes that possible.”
Advanced applications such as smart contract–powered escrow services could soon become feasible. For example, a Kenyan exporter could receive payment automatically when a delivery is confirmed, reducing risk and opening new trade opportunities, particularly within the African Continental Free Trade Area (AfCFTA).
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