In a recent interview, Edline E. Murungi, Senior Legal Counsel for East Africa at Yellow Card, has shared her views on the upcoming crypto regulation in Kenya.
According to Murungi, the Kenyan law is the first to incorporate regulates from both the capital markets space (Capital Markets Authority of Kenya) and the payments space (Central Bank of Kenya), a testament to the use cases of cryptocurrencies beyond just the general trading and investment space.
According to Murungi:
“99% of the transactions are in stablecoins within the cryptocurrency industry. When that shift happens, we realized that people don’t do cryptocurrencies for investments. They are facilitating payments, and most times, cross-border payments. So we shifted.
If you look at investment laws, they are very different from payment systems laws. Payment systems and money moving across borders is usually Central Banks. They are the ones who want to know, how much money came int the country, how much money left. How many dollars do we have? How many Kenya Shillings do we have? Its the role of the Central Bank [of Kenya].”
For years, #Kenyan traders depended on middlemen to import goods from #China.
Today, individual importers now dominate with many importing for as low as $100.
Thus, new modes of payments, such as stablecoins, are taking hold.https://t.co/37tP2j04AR $USDT $USDC pic.twitter.com/TOaFlYPpZD
— BitKE (@BitcoinKE) May 1, 2025
Murungi goes on to show how the upcoming regulation will be impactful across the region.
“That approach of both the CBK [Central Bank of Kenya] and the CMA [Capital Markets Authority of Kenya] has actually been adopted by Rwanda, its probably going to be adopted by Uganda. We all know how the laws around the region move. They are always similar and since Kenya is always the first, they’re like, aw, its the first, its great, its good, why should we redo it?
So, you will see around the region [regulation] having both the Central Bank[s] and Capital Markets Authorities. That is not the same with other countries.”
Murungi’s viewpoint aligns with a recent editorial published by BitKE which highlighted the effect of the crypto regulation in Kenya within the region. In the post, BitKE cautions on the need to be alert on crypto regulatory capture, as has been reported in Kenya, and the risks it could impose within the region.
REGULATION | Kenya’s Crypto Regulatory Capture is Actually Regional – Here’s Why It Matters for East Africa
Kenya’s ongoing crypto regulatory capture isn’t a domestic issue but threatens East Africa’s innovation leadership and regional investment.https://t.co/qx5OKm7hkd pic.twitter.com/9RzpQJMP46
— BitKE (@BitcoinKE) July 4, 2025
Kenya is a leader in cross-border payments, remittances, and regional fintech expansion. But if crypto regulation becomes a gatekeeping tool – influenced by legacy banks or political actors – regional startups will suffer.
Licensing regimes and compliance costs shaped by capture don’t just hurt Kenyan companies; they make it harder for Rwandan, Ugandan, or Tanzanian fintechs to plug into the Kenyan market – ultimately slowing regional growth and financial inclusion.
The Competition Authority of Kenya has likewise highlighted the need for regional cooperation to ensure fair competitiveness within the region.
“Without regional cooperation, firms can engage in anti-competitive practices like cross-border cartels or abuse of dominance in multiple markets.
Effective competition law enforcement lowers barriers to entry, making it easier, especially SMEs, to enter and compete – @CAK_Kenya https://t.co/y42A5rxTW5
— BitKE (@BitcoinKE) July 6, 2025
The regulatory body has proposed competition rules that include tough penalties to ensure the region is protected from unfair market practices.
[TECH] REGULATION | Digital Sellers, Tech Firms in Kenya Face KES 10 Million (~$80,000) Fines, 5-Year Jail Term for Breaking Upcoming Competition Rule: Online businesses and digital platforms in Kenya could .. https://t.co/8n8bOIwHh8 via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) July 6, 2025
Murungi goes on to talk about Anti-Money Laundering (AML) laws and how different countries within the region have tackled this challenge. She noted that Kenya has lagged behind in this aspect despite cryptocurrencies being used for sometime now.
REGULATION | European Commission (EU) Officially Lists Kenya as High-Risk Country for Money (ML) Laundering and Terrorism Financing (TF)
Kenya now joins a list of 9 other countries globally on the @EU_Commission watchlist for ML and TF.https://t.co/VEgzJZyXDM @FATFNews #EU pic.twitter.com/A0pCZGQld3
— BitKE (@BitcoinKE) June 14, 2025
The legal counsel goes on to also talk about fair taxation and why the recent update on how to tax gains was the right approach.
Parliament drops 3% DAT on crypto; it was to be charged on txn value but now will be excise duty on txn fees… https://t.co/UP5iYjnN68 pic.twitter.com/EdLbnEjVbN
— myTradeSignals (@mytradesignals) June 23, 2025
Murungi also touches on the recent partnership of Yellow Card with VISA and the U.S. GENIUS Act providing an interesting viewpoint from a regulatory angle.
#VISA partners with @yellowcard_app to push stablecoin adoption in Africa in a race for dominance despite regulatory warning by @thebankofghana #Stablecoin transactions have now surpassed @Visa transactions as reported in May 2025.https://t.co/qNhHSPDmh5 @VisaNews pic.twitter.com/MRc73Gbow8
— BitKE (@BitcoinKE) June 19, 2025
Murungi concludes by saying:
“I feel like we’re going to move towards where money and doing business and moving things is so easy. The entire ecosystem will be intertwined. It will be like one fluid ecosystem.”
Watch the full interview below:
Stay tuned to BitKE for deeper insights into the evolving Kenyan and African regulatory crypto space.
Join our WhatsApp channel here.
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
________________________________________________
