The Kenya Revenue Authority is tightening oversight of cryptocurrency activity as the government moves to widen its tax base and track digital transactions that have largely operated outside formal reporting channels in Kenya.
- The Kenya Revenue Authority is tightening oversight of cryptocurrency activity as the government moves to widen its tax base and...
- According to local reports and proposed reforms in the Finance Bill 2026, crypto exchanges and virtual asset service providers will...
- Kenya ranked among the top 30 global crypto markets in 2025, according to the Yellow Card Regulatory Report, while blockchain...
- Kenya Revenue Authority officials are also increasing automated checks across tax filings, electronic invoices, and transaction records as part of...
Keep reading for the full breakdown on Africa Crypto Market — everything you need to know is covered below.
According to local reports and proposed reforms in the Finance Bill 2026, crypto exchanges and virtual asset service providers will be required to submit users’ identities and transaction details to the Kenya Revenue Authority as part of crypto reporting and tax compliance efforts.
The move comes as Kenya experiences rising cryptocurrency adoption among retail traders, freelancers, and cross-border payment users.
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Kenya Revenue Authority plans for crypto traders
The Kenya Revenue Authority is seeking the identities of cryptocurrency traders as it steps up efforts to pursue tax evasion and widen its revenue base amid growing digital asset adoption in the country.
Kenya ranked among the top 30 global crypto markets in 2025, according to the Yellow Card Regulatory Report, while blockchain analytics firm Chainalysis has identified the country as one of Africa’s fastest-growing digital asset markets.
Kenya also processed about $3.3 billion (Sh426 billion) in stablecoin transactions in the year to June 2024, according to Chainalysis data reported by Business Daily, highlighting rising use of digital assets for remittances, cross-border trade, and savings.
Under the proposed framework, virtual asset service providers would then file annual information returns containing details of users and reportable transactions.
The Finance Bill 2026 states that exchanges and trading platforms will be required to disclose data linked to customers with “controlling interests” and to report on crypto activities that are reportable.
The tax agency has, in recent years, expanded its use of data analytics and third-party information sharing to improve compliance and boost collections, particularly as pressure mounts on the government to increase domestic revenues.
Kenya Revenue Authority officials are also increasing automated checks across tax filings, electronic invoices, and transaction records as part of broader tax enforcement reforms.
The country was among the first African nations to introduce a Digital Asset Tax on crypto transactions through the Finance Act 2023. Even as the earlier 3 per cent Digital Asset Tax was later replaced with a revised structure focused on transaction fees, crypto-related gains and income remain taxable under Kenyan law.
The Kenya Revenue Authority is now shifting its attention from direct transaction taxes to crypto reporting obligations, which would give authorities greater visibility into trading activity.
Africa’s crypto market draws regulators
Across Africa, regulators are intensifying efforts to monitor digital asset markets as crypto adoption grows in countries grappling with currency volatility and rising demand for alternative payment systems.
South Africa now requires crypto firms to obtain licenses from the Financial Sector Conduct Authority (FSCA), while Nigeria has tightened oversight of digital asset platforms through rules issued by the Securities and Exchange Commission (SEC).
Morocco has also moved to pursue holders of undeclared crypto assets abroad as authorities expand enforcement efforts.
Kenya remains one of Africa’s most active crypto markets, with millions of users estimated to hold or trade digital assets.
Chainalysis previously ranked Kenya among the leading countries globally for grassroots cryptocurrency adoption, driven by retail users, remittances, and peer-to-peer trading activity.
The Kenya Revenue Authority says stronger crypto reporting rules will help improve tax compliance, reduce revenue leakages, and align the country with emerging international standards on digital asset oversight and financial transparency.