Kenya is introducing strict new rules for cryptocurrency companies. Under draft regulations from the National Treasury, stablecoin issuers must hold approximately 3.85 million in paid-up capital. They must also maintain liquid reserves covering all liabilities for at least 30 days.
The requirements do not stop at capital. Issuers must fully back every token with high-quality liquid assets such as cash or bank deposits. These reserves must remain separate from company funds, held by approved custodians, and available for immediate redemption.
Transparency standards are equally demanding. Companies must publish detailed white papers describing their operations, governance structure, risk factors, and fund management practices. Directors will bear personal responsibility for the accuracy of this information.
Regulatory oversight will be split. The Central Bank of Kenya will supervise stablecoins used for payments. The Capital Markets Authority will regulate tokenized real-world assets classified as investments. For these tokenized offerings, issuers need roughly 1.5 million in paid-up capital and about 310,000 in liquid reserves.
The framework responds to pressure from the Financial Action Task Force, which has called for stronger oversight in high-usage crypto markets like Kenya. The government aims to protect consumers and bring formal structure to the digital asset sector.
However, the high barriers may carry consequences. Smaller startups could struggle to meet capital, compliance, and liquidity demands. This would leave the market dominated by banks and well-funded global firms.
Industry stakeholders have until April 2026 to submit feedback. Some advocate for a tiered approach with lighter requirements for smaller projects and stricter standards for large-scale issuers.
If implemented, these regulations would position Kenya among Africa’s most tightly controlled crypto jurisdictions. The rules could attract institutional confidence but will test whether the market can sustain such demanding standards.
Read also: UK Sanctions 20B Crypto Black Market in Major Crackdown on Global Scams