- Kenya is positioning itself to become Africa’s leading blockchain and cryptocurrency hub, with regulators and industry players calling for balanced regulations that encourage innovation while protecting investors
- Officials from both the government and the private sector said the country’s proposed virtual asset regulations could unlock billions in investment and cement Kenya’s place in the global digital economy if implemented inclusively
- With deep mobile money adoption and over six million Kenyans already using stablecoins for remittances, investments, and cross-border payments, the country holds a competitive advantage over many global markets
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Kenya is positioning itself to become Africa’s leading blockchain and cryptocurrency hub, with regulators and industry players calling for balanced regulations that encourage innovation while protecting investors.
Source: UGC
Speaking at the Kenya Blockchain and Crypto Conference 2026, officials from both government and the private sector said the country’s proposed virtual asset regulations could unlock billions in investment and cement Kenya’s place in the global digital economy if implemented inclusively.
Justin Saboti, Deputy Director at the Capital Markets Authority (CMA), said regulators are keen to understand the fast-changing blockchain landscape and create an environment where innovation can thrive safely.
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“As a regulator, we have come to attend this session looking at issues around blockchain, digital currency and what is happening in that space,” Saboti said. “We are trying to see exactly how we can provide facilitation for this market to grow.”
Saboti noted that technological advancements and changing financial systems have made it necessary for regulators to modernise oversight frameworks, especially in the virtual asset sector.
“It provides for any firms that want to play in the space of virtual assets in Kenya to be registered in Kenya or have an office in Kenya, a representative office. Without that, you are not going to be licensed. Right? So, that will give us a foothold on what these entities will be doing so that ultimately in case anything goes wrong, it will be easy to follow up with the local office so they can give us an explanation as to what is going on, and if there are any enforcement mechanisms that need to be put in place, then the follow up can be done because the locally registered office would actually be held fully responsible for whatever will be happening.”
According to the CMA official, requiring crypto firms to establish local offices would help authorities enforce regulations and protect investors in case of disputes or fraud.
At the same conference, Peter Mwangi, Country Manager for VALR, praised Kenya’s approach to regulation, describing the draft framework as one of the most progressive in the industry.
“Kenya is properly placed to become the capital of virtual assets, not just in Africa but also globally,” Mwangi said.
Mwangi said Kenya’s deep adoption of mobile money and digital payments gives it a competitive advantage over many global markets.
“This is not the first time that Kenyans will be holding digital wallets. We live in digital wallets,” he said, adding that more than six million Kenyans already use stablecoins for remittances, investments and cross-border payments.
Both speakers acknowledged concerns from industry players over compliance costs and proposed transaction levies under the new regulations.
“It provides for any firms that want to play in the space of virtual assets in Kenya to be registered in Kenya or have an office in Kenya, a representative office. Without that, you are not going to be licensed. Right? So, that will give us a foothold on what these entities will be doing so that ultimately in case anything goes wrong, it will be easy to follow up with the local office so they can give us an explanation as to what is going on, and if there are any enforcement mechanisms that need to be put in place, then the follow-up can be done because the locally registered office would actually be held fully responsible for whatever will be happening.”
Saboti defended the need for oversight, saying efficient markets require rules and enforcement mechanisms.
“It provides for any firms that want to play in the space of virtual assets in Kenya to be registered in Kenya or have an office in Kenya, a representative office. Without that, you are not going to be licensed. Right? So, that will give us a foothold on what these entities will be doing so that ultimately in case anything goes wrong, it will be easy to follow up with the local office so they can give us an explanation as to what is going on, and if there are any enforcement mechanisms that need to be put in place, then the follow up can be done because the locally registered office would actually be held fully responsible for whatever will be happening.”
Mwangi, however, urged regulators to review some provisions, particularly proposed capital requirements and the planned 0.05% transaction levy.
Stablecoins adoption to resolve high costs and delays
In other news, industry leaders at the fourth Kenya Blockchain and Crypto Conference in Nairobi pushed for faster adoption of stablecoins as a solution to Africa’s costly, slow, and unreliable cross-border payment systems, which can sometimes take up to two weeks to settle.
Stakeholders said stablecoins, which are digital assets pegged to stable currencies such as the US dollar, could enable near-instant and cheaper international transactions for businesses and remittance users by eliminating multiple intermediary banks and high transaction fees.
Speakers including Sheila Waswa, Luno Kenya country manager Apollo Sande, and YogoPay’s Kevin Kegima noted that stablecoins are already being used for remittances, treasury management, and international trade, although adoption remains limited by low awareness and regulatory uncertainty.
Source: TUKO.co.ke
