Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

CryptonewslandCryptonewsland2025/11/03 14:27
By:by Wesley Munene
  • Kenya’s Finance Act 2025 replaces the Digital Asset Tax with excise duty on crypto platform service fees.
  • The VASP Act mandates registration, KYC compliance, and Kenyan board representation for all crypto firms.
  • Coordination between the CBK and CMA will guide implementation as Kenya strengthens regulation of its crypto sector.

Kenya has introduced a major change to its cryptocurrency taxation system, replacing the Digital Asset Tax with an excise duty on platform fees. The reform, part of the Finance Act 2025, aims to align the country’s approach to digital asset taxation with international standards. The adjustment follows the enforcement of the Virtual Asset Service Providers (VASP) Act, which formalizes how crypto businesses operate under the Central Bank of Kenya’s oversight.

New Tax Model Targets Service Fees

Under the new framework, a local report confirms that licensed crypto exchanges and brokers will pay excise duty on fees and commissions charged to users. The earlier system, which imposed a three percent tax on the total transaction value, has been repealed. Officials say the shift better reflects how digital asset platforms earn revenue. 

The Kenya Revenue Authority (KRA) worked with industry representatives to refine the model, ensuring a system based on service charges rather than asset value. Industry participants have expressed support for the revised policy. GoChapaa’s Chief Marketing Officer, Philip Chege, said the move resolves long-standing concerns about fairness and practicality in crypto taxation. 

He confirmed that digital asset companies engaged in discussions with the KRA and legal experts during the drafting process. Chege stated that dialogue between regulators and stakeholders created a cooperative environment for shaping the new structure .

VASP Act Enforces Regulatory Standards

The VASP Act, which took effect this year, requires all virtual asset platforms to register with the Central Bank of Kenya. Registered entities must maintain physical offices, implement Know Your Customer (KYC) procedures, and include Kenyan nationals on their boards. The law also enforces anti-money laundering and counter-terrorism financing standards consistent with the Financial Action Task Force guidelines. 

These measures establish Kenya’s framework for accountability in the digital asset sector. Implementation of the tax and registration measures will depend on coordination between the Central Bank of Kenya and the Capital Markets Authority.  The two agencies are going to take care of the licensing, compliance, and reporting processes for the service providers. The analysts believe that the organized method will not only make supervision more formal but also ensure that the right amount of tax is collected from the rapidly evolving crypto market. 
As per the data from Chainalysis , Kenya is the third-largest country in Africa in terms of overall cryptocurrency usage and the first in peer-to-peer trading volumes. Now that the taxation and licensing frameworks are clearly defined, the government is planning to make the digital finance sector more compliant and transparent without slowing down its growth.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Robinhood’s Entry into Prediction Markets Establishes a Compliance-Focused Benchmark for Accessibility

- Robinhood accelerates prediction market expansion, now its fastest-growing revenue stream, partnering with Kalshi to trade 9B+ contracts since March. - Plans a 2026 futures exchange with Susquehanna as liquidity provider, acquiring MIAXdx to leverage CFTC-licensed infrastructure for institutional-grade compliance. - Regulatory alignment via Kalshi's CFTC approval and MIAXdx's framework enables Robinhood to bridge retail and institutional trading while maintaining oversight. - Outpaces rivals like Polymar

Bitget-RWA2025/11/26 06:42

Bitcoin Updates: Bearish Trend in Bitcoin Fuels Increased Interest in Mutuum's DeFi Presale

- Mutuum Finance (MUTM) gains traction as a DeFi presale contender, projecting 2,600% ROI with Phase 6 nearing 99% completion and a $0.040 price hike in Phase 7. - Its buy-and-distribute tokenomics and $18.89M Phase 6 raise highlight strong demand, while Halborn Security audit and Q4 2025 lending protocol launch reinforce institutional-grade credibility. - Bitcoin's dip below $83,000 amplifies MUTM's appeal as a hedge, with analysts noting 400% post-launch price potential and 24-hour leaderboards boosting

Bitget-RWA2025/11/26 06:24
Bitcoin Updates: Bearish Trend in Bitcoin Fuels Increased Interest in Mutuum's DeFi Presale

"Automation and enhanced security are driving cryptocurrency's efforts to make trading accessible to everyone"

- Bitget's Black Friday campaign offers 100% reward matches and a 50,000 USDT prize pool for spot-grid trading, targeting retail investors with automated tools. - Mutuum Finance advances to Phase 2 with 90% presale completion, preparing a Q4 2025 protocol launch supported by Halborn audits and institutional-grade security. - Both initiatives highlight crypto's shift toward democratizing trading through automation, security, and rewards to lower entry barriers for mass adoption.

Bitget-RWA2025/11/26 06:24
"Automation and enhanced security are driving cryptocurrency's efforts to make trading accessible to everyone"