Summary
Kenya's CBK introduced a VASP framework (Legal Notice 134/2026) setting tiered paid-up capital (Ksh300M for stablecoin issuers, Ksh150M wallets, Ksh100M exchanges, Ksh20M ICO facilitators), full reserve backing, quarterly stress tests and CBK approval — aligning Kenya with global stablecoin standards.
Key Points
- CBK VASP regulations via Legal Notice No. 134 of 2026 (dated July 22).
- Stablecoin issuers: Ksh300M minimum paid-up capital; liquid capital ≥ Ksh60M or 100% of current liabilities (30-day minimum), whichever higher.
- Wallet providers: Ksh150M paid-up capital.
- Virtual-asset exchanges: Ksh100M paid-up capital; liquid capital ≥ Ksh20M or 8% of total liabilities.
- ICO-facilitating providers: Ksh20M paid-up capital; liquid capital ≥ Ksh4M or 8% of total liabilities.
- Stablecoin issuers: CBK approval required; full reserve backing (≥ nominal value of outstanding stablecoins); quarterly reserve stress tests submitted to CBK; clear redemption policies.
- Kenyans hold estimated Ksh155 trillion (USD 1.2 trillion) in virtual assets.
- Kenya among Africa's fastest-growing crypto markets (mobile money adoption, young tech-savvy population).
- Aim: investor safeguards + predictable business environment; aligns Kenya with global digital-finance standards (echoes GENIUS Act / MiCA approach).
- Joins African wave (Nigeria FCCPC/DEON, broader African stablecoin adoption) moving from ambiguous rules to capital-adequacy VASP regimes; concentrates market around better-capitalized compliant operators.