Kenya’s Insurance Regulatory Authority (IRA) is preparing to extend protection to holders of cryptocurrencies and digital assets. The draft Insurance (Amendment) Regulations 2025 propose that insurance companies can now create policies covering digital assets against risks such as theft, hacking, and system failures.
This development is historic because, until now, crypto investors have had almost no formal protection against losses. When a digital wallet was hacked or an exchange collapsed, users simply lost their money. By allowing insurers to step in, Kenya is signalling that crypto assets deserve the same level of protection as other financial instruments.
The proposed framework will require insurers offering such policies to meet strict cybersecurity and operational standards. This ensures that insurance providers fully understand the digital asset landscape and can assess risk accurately. It also introduces new requirements for reporting and auditing digital asset losses.
The idea of insuring crypto may sound new, but it fits neatly into Kenya’s broader regulatory vision. The government recently passed a law that formally recognises digital assets and provides a legal foundation for exchanges and wallets. Now, the insurance addition fills an important gap, it strengthens user trust and helps attract institutional players who demand regulated risk management tools.
Experts believe this move could significantly boost confidence in Kenya’s digital economy. It could also encourage local startups to integrate insurance-backed features into their platforms, such as insured custodial wallets or protected investment accounts.
Global landscape, only a few countries have begun exploring similar insurance mechanisms for crypto, putting Kenya ahead in innovation. This policy marks the next stage of crypto maturity in Africa, one where digital assets are treated not as speculative instruments, but as legitimate, insurable parts of the economy.
If fully implemented, Kenya could become the first African country where both the use and protection of digital assets are legally recognised.
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