Kenyan Banks Warm to Crypto: Nearly One-Third Now Ready to Facilitate Digital Asset Deals

Kenya's financial sector is dipping its toes into the crypto pool—whether regulators like it or not. About 31% of the country's banks are now open to handling digital asset transactions, signaling a slow but seismic shift in traditional finance's cold war with decentralization.

The quiet rebellion

While central bankers worldwide still clutch their fiat pearls, Kenyan institutions are pragmatically adapting to client demand. No flashy announcements—just backroom integrations and hushed compliance meetings.

The unspoken calculus

Banks smell revenue streams where others see risk: transaction fees on crypto trades don't care about price volatility. Meanwhile, legacy finance keeps pretending blockchain is 'just a phase'—like mobile banking was in 2007.

This isn't adoption—it's capitalism. And it's coming for every underperforming savings account in Nairobi.

Kenyan banks emphasize the need for a regulatory framework

According to the United Nations Trade and Development (UNCTAD), the government has seen a lot of potential in the crypto market. There are about four million users of crypto in the country.

The report states, “Most financial institutions (35 percent) emphasized the need for regulatory frameworks governing digital innovation. This includes areas such as digital lending, open banking, application programming interfaces standardization, digital identity blockchain, virtual assets including crypto assets, and digital-only banking.” 

Kenya was put on the Financial Action Task Force’s (FATF) “grey list” in 2014 because it didn’t have a clear plan for prosecuting money laundering crimes, among other things. Another problem was that no rules were in place to monitor and control how crypto was used.

However, recently, the government moved to regulate the sector through the Virtual Asset Service Providers Bill 2025. This law requires crypto companies that do business in the country to set up local offices and hire directors, but only after getting approval from regulators like the Capital Markets Authority (CMA).

Crypto taxes reduced by half

In addition, the Kenya Revenue Authority (KRA) has also said that it will create a new tax system that includes real-time tracking of crypto transactions. This is so that the government can use the local crypto sector to catch tax cheats and criminals.

At the same time, the government has tried to encourage people to use crypto. The National Treasury is cutting the 3% tax on the sale of digital assets that was put in place in 2023 by half, to 1.5%, in the 2025 Finance Bill. However, this was after the Kenyan crypto companies teamed up against what they called the country’s controversial 3% digital asset tax (DAT).

🚨 Crypto Tax Showdown in Kenya 🇰🇪@PwC has officially joined forces with top Kenyan crypto firms, including Busha, Kotani Pay, Luno & Swypt, to fight the controversial Digital Asset Tax (DAT).

🟠From 3% to 1.5%, but the industry says it's still unfair.
🟠Parliament has… pic.twitter.com/uuH9HSYps4

— TawkCrypto (@Tawkcrypto) June 2, 2025

According to Cabinet Secretary John Mbadi, the levy was lowered to make it the same as the 1.5% turnover tax that businesses with a total turnover of Ksh.1 million to Ksh.25 million a year pay. 

Meanwhile, the Nairobi Securities Exchange (NSE) took its biggest step yet into the crypto world by teaming up with DeFi Technologies to launch the Kenya Digital Exchange (KDX).  

The platform is meant to enable digitization and trading of intangible assets, like equities, debts, exchange-traded funds, and tangible commodities, such as Gold and oil, all on a blockchain-based system.

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