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 The earlier system, which imposed a three percent tax on the total transaction value, has been repealed.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

WCT experiences a 38% increase fueled by rising demand for data centers powered by AI technology

- WCT , a machinery sector stock, surged 38% in 24 hours, driven by AI-boosted data-center demand and improved pricing dynamics. - Jefferies highlighted WCT as a top machinery stock, citing its exposure to cloud computing growth and 2026 data-center construction projections. - The rally reflects shifting investor sentiment toward AI-linked infrastructure, with WCT benefiting from sector margin recovery and macroeconomic tailwinds. - Pre-earnings buying and strong positioning suggest confidence, though anal

Bitget-RWA2025/11/16 09:20
WCT experiences a 38% increase fueled by rising demand for data centers powered by AI technology

Zcash News Update: ZEC Price Swings Cause Crypto Whale to Lose $1.17 Million on 10x Short

- A crypto whale's 10x short position on Zcash (ZEC) incurred $1.17M losses as prices fell below $360, triggering partial liquidations. - ZEC's volatility highlights risks in leveraged trading, with lower-cap assets facing manipulation and liquidity crises at platforms like Hyperliquid. - Whale activity intensified as Ethereum whales repositioned $1.39B and $5M in tokens amid regulatory uncertainties and market turbulence. - Leveraged ZEC positions show extreme duality: one whale's $8.28M unrealized gain c

Bitget-RWA2025/11/16 09:02
Zcash News Update: ZEC Price Swings Cause Crypto Whale to Lose $1.17 Million on 10x Short

The Emergence of ICP Caffeine AI in Web3 Advancement: Investing Strategically in Blockchain Protocols Powered by AI

- ICP Caffeine AI, developed by Dfinity, democratizes dApp creation via AI-blockchain integration, lowering technical barriers for developers. - The platform drove a 56% ICP token surge in one day and 385% growth over a month, with $237B TVL by Q3 2025 despite 22.4% dApp usage decline. - Strategic Microsoft Azure partnerships expand hybrid cloud utility, but regulatory risks and competition from centralized AI providers persist. - Its deflationary token model relies on sustained app adoption, contrasting w

Bitget-RWA2025/11/16 09:00
The Emergence of ICP Caffeine AI in Web3 Advancement: Investing Strategically in Blockchain Protocols Powered by AI

ICP Soars by 30%: Could This Signal the Beginning of a Major Bull Market?

- ICP's 30% price surge sparks debate between bullish optimism and warnings of short-term volatility driven by macroeconomic factors and speculative trading. - Improved market sentiment from Fed policy expectations contrasts with hawkish comments causing 11% corrections, highlighting fragile macroeconomic foundations. - Technical upgrades like Caffeine and institutional partnerships coexist with declining DApp activity (-22.4%) and unverified adoption metrics, revealing innovation-adoption gaps. - Speculat

Bitget-RWA2025/11/16 09:00
ICP Soars by 30%: Could This Signal the Beginning of a Major Bull Market?