Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

Kenya Shifts Crypto Tax Policy Toward Platform Fees Under New Law

CryptonewslandCryptonewsland2025/11/03 14:27
By:by Wesley Munene
  • Kenya’s Finance Act 2025 replaces the Digital Asset Tax with excise duty on crypto platform service fees.
  • The VASP Act mandates registration, KYC compliance, and Kenyan board representation for all crypto firms.
  • Coordination between the CBK and CMA will guide implementation as Kenya strengthens regulation of its crypto sector.

Kenya has introduced a major change to its cryptocurrency taxation system, replacing the Digital Asset Tax with an excise duty on platform fees. The reform, part of the Finance Act 2025, aims to align the country’s approach to digital asset taxation with international standards. The adjustment follows the enforcement of the Virtual Asset Service Providers (VASP) Act, which formalizes how crypto businesses operate under the Central Bank of Kenya’s oversight.

New Tax Model Targets Service Fees

Under the new framework, a local report confirms that licensed crypto exchanges and brokers will pay excise duty on fees and commissions charged to users. The earlier system, which imposed a three percent tax on the total transaction value, has been repealed. Officials say the shift better reflects how digital asset platforms earn revenue. 

The Kenya Revenue Authority (KRA) worked with industry representatives to refine the model, ensuring a system based on service charges rather than asset value. Industry participants have expressed support for the revised policy. GoChapaa’s Chief Marketing Officer, Philip Chege, said the move resolves long-standing concerns about fairness and practicality in crypto taxation. 

He confirmed that digital asset companies engaged in discussions with the KRA and legal experts during the drafting process. Chege stated that dialogue between regulators and stakeholders created a cooperative environment for shaping the new structure .

VASP Act Enforces Regulatory Standards

The VASP Act, which took effect this year, requires all virtual asset platforms to register with the Central Bank of Kenya. Registered entities must maintain physical offices, implement Know Your Customer (KYC) procedures, and include Kenyan nationals on their boards. The law also enforces anti-money laundering and counter-terrorism financing standards consistent with the Financial Action Task Force guidelines. 

These measures establish Kenya’s framework for accountability in the digital asset sector. Implementation of the tax and registration measures will depend on coordination between the Central Bank of Kenya and the Capital Markets Authority.  The two agencies are going to take care of the licensing, compliance, and reporting processes for the service providers. The analysts believe that the organized method will not only make supervision more formal but also ensure that the right amount of tax is collected from the rapidly evolving crypto market. 
As per the data from Chainalysis , Kenya is the third-largest country in Africa in terms of overall cryptocurrency usage and the first in peer-to-peer trading volumes. Now that the taxation and licensing frameworks are clearly defined, the government is planning to make the digital finance sector more compliant and transparent without slowing down its growth.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Echoes from 2000: Burry Bets $900M Against $5 Trillion AI Valuations

- Michael Burry's $900M short bet targets Palantir and NVIDIA, challenging their AI sector valuations amid rising skepticism. - The NVIDIA-Palantir partnership integrates GPU tech with AI platforms to boost enterprise decision-making, driving recent stock optimism. - Palantir's $471B market cap and NVIDIA's $5T valuation face scrutiny over execution risks, regulatory concerns, and stretched multiples. - Institutional investors show mixed signals, with some bullish on AI growth while Burry warns of an "AI b

Bitget-RWA2025/11/04 05:36
Echoes from 2000: Burry Bets $900M Against $5 Trillion AI Valuations

Bitcoin Updates: Renewed Institutional Trust and Accommodative Fed Stance Fuel Bitcoin’s Most Promising Bull Run Since 2021

- Institutional flows and dovish Fed policy drive Bitcoin’s strongest bull case since 2021, with $130K–$135K 2026 targets gaining traction. - U.S. Spot Bitcoin ETFs saw $202.4M net inflows on October 29, led by Grayscale, Fidelity, and ARK Invest, signaling institutional confidence. - Technical analysis highlights $109K as a critical support level, with $125K retests and accumulation patterns suggesting sustained bullish momentum. - Maturing ETF infrastructure and Fed easing expectations amplify Bitcoin’s

Bitget-RWA2025/11/04 05:36
Bitcoin Updates: Renewed Institutional Trust and Accommodative Fed Stance Fuel Bitcoin’s Most Promising Bull Run Since 2021

Ethereum News Update: MoonBull’s Ethereum-Secured Protections and Referral Initiative Spark 9,256% ROI Buzz

- MoonBull ($MOBU) targets 9,256% ROI via Ethereum-based presale with $0.00006584 entry price, aiming for 1000x growth by 2025. - Structured 22-stage price escalation (27.40% per stage) and 15% referral rewards drive liquidity and community-driven adoption. - Competes with Solana (SOL) and Ethereum (ETH) by combining DeFi innovation with meme coin virality through Ethereum's security framework. - High volatility risks persist despite safeguards like 60-minute claim delays and 48-hour liquidity locks, urgin

Bitget-RWA2025/11/04 05:36
Ethereum News Update: MoonBull’s Ethereum-Secured Protections and Referral Initiative Spark 9,256% ROI Buzz

Zcash's Rise in Privacy and the Growth of Decentralized Exchanges Indicate a More Mature Crypto Market Focused on User Empowerment

- Zcash (ZEC) surged 198.92% to $420 by mid-November 2025, driven by increased demand for privacy-focused zero-knowledge proof transactions and a 4.1M token shielded supply via Orchard protocol. - Electric Coin Co. (ECC) unveiled Q4 2025 upgrades including ephemeral addresses, improved hardware wallet support, and P2SH multisig wallets to enhance Zcash's utility and privacy. - Decentralized exchanges (DEXs) processed $1.36T in October 2025, with Hyperliquid leading at $299B, reflecting growing trader prefe

Bitget-RWA2025/11/04 05:36
Zcash's Rise in Privacy and the Growth of Decentralized Exchanges Indicate a More Mature Crypto Market Focused on User Empowerment