Kenya’s Parliament has approved a new law to regulate digital assets such as cryptocurrencies, marking a major step toward positioning the country as a key player in Africa’s growing virtual economy.
According to Kuria Kimani, Chairperson of the Finance Committee in the National Assembly, lawmakers passed the Virtual Asset Service Providers Bill last week to establish a clear legal framework for the digital assets industry and attract investment into the sector.
The bill now awaits President William Ruto’s assent to become law, which would make Kenya one of the few African countries—alongside South Africa—to have comprehensive legislation governing cryptocurrency activities.
Under the new framework, the Central Bank of Kenya will serve as the licensing authority for the issuance of stablecoins and other virtual assets, while the Capital Markets Authority will oversee the licensing of crypto exchanges and other trading platforms.
Kimani noted that the law is designed to create investor confidence and stimulate innovation, adding that companies such as Binance and Coinbase have already shown interest in entering the Kenyan market once regulatory clarity is in place.
“We are hoping that Kenya can now be the gateway into Africa,” Kimani said. “Most young people between 18 and 35 years are already using virtual assets for trading, payments, and investment.”
The legislation also aims to address global concerns about the misuse of digital assets for illicit activities, borrowing regulatory best practices from the United States and the United Kingdom.
The move comes as many developing economies prepare for a potential surge in U.S. dollar-backed stablecoins, which international financial watchdogs have warned could affect local currencies.
Kenya, already a pioneer in mobile-based financial innovation through platforms like M-Pesa, sees the new law as an opportunity to further expand its digital finance ecosystem and attract global fintech investment.
Source:Africa Publicity
