A new Central Bank of Kenya (CBK) survey has revealed that most Kenyan banks are ready to offer cryptocurrency-related services, reflecting a shift in the country’s financial sector amid growing interest in digital assets.
According to the CBK, feedback collected from banks shows a willingness to engage with crypto offerings, including partnerships with Virtual Asset Service Providers (VASPs), as long as there is a clear legal and regulatory framework in place.
“There was a general willingness by most banks to partner with VASPs in offering crypto-related services, provided there exists a legal and regulatory framework,” the CBK said in the survey findings.
RECAP: BitKE Hosts Regulatory Experts and Industry Stakeholders to Discuss Crypto Policy & Regulation in Kenya
Here is a detailed recap of the discussion which provided great insights into crypto assets regulation in Kenya and how startups in the space can position… pic.twitter.com/Hn5vzTgPh8
— BitKE (@BitcoinKE) May 24, 2023
This development comes even as crypto trading remains largely unregulated in Kenya. The growing appetite among lenders to support digital asset services reflects a broader global trend, where traditional financial institutions are beginning to integrate crypto services due to customer demand.
To address the lack of oversight, the CBK and the Capital Markets Authority (CMA) have established a joint technical working group tasked with assessing the extent of crypto adoption and recommending a regulatory framework.
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— Top Kenyan Blogs (@Blogs_Kenya) April 9, 2025
This effort follows rising use of crypto assets among Kenyan companies, particularly for cross-border payments. Businesses are increasingly relying on stablecoins such as Tether’s $USDT) and Circle’s $USDC to settle transactions with overseas suppliers, a response to the persistent shortage of U.S dollars and the weakening of the Kenyan shilling (KES).
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Data reveals that the increase in profits from the currency slump was almost four times higher compared to the gains of ~$27.35 million… pic.twitter.com/pS2PfMNg6m
— BitKE (@BitcoinKE) September 2, 2023
The shift towards digital currencies has also caught the attention of the Kenya Revenue Authority (KRA), which reportedly collected KES 10 billion (~$77 million) in taxes from cryptocurrency users in 2023 – the first such reported revenue from the sector. The tax was levied on gains realized from crypto transactions.
TAXATION | The Kenya Revenue Authority Collected $77.5 Million in Crypto Taxes in the Last Financial Year
“If we are able to talk and agree with the central bank . . . we will be able to net KES 60 billion [~$465 million].” – Chairman, @KRACarehttps://t.co/pzHfEeYN8u pic.twitter.com/OwVMRPRTO4
— BitKE (@BitcoinKE) November 6, 2024
Although Kenya does not currently have a legal framework to regulate cryptocurrencies, the CBK’s findings highlight the urgent need to address the regulatory vacuum. The technical working group is expected to propose a path forward for licensing and oversight of crypto activity.
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The event brought together a mix of regulators and innovators from various #Web3 sectors. Those in attendance included:
* Central bank of kenya * Kenya bankers association * Law… pic.twitter.com/r3MsctiAYj
— BitKE (@BitcoinKE) May 23, 2023
The CBK has previously warned the public about the risks associated with digital currencies, including fraud, volatility, and the lack of investor protections. However, the growing use of crypto in payments and the formal interest from banks now suggest that Kenya’s financial authorities may be preparing for a more structured approach.
NONSENSE!!!
Central Bank Governor Warns Kenyans to Avoid P2P Crypto Transactions While Banks Risk Licenses Getting Revokedhttps://t.co/6BaGcWlVzf
— STEPHEN-HIGH (@stephenhycinth) March 29, 2022
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