CBK, CMA Await Treasury Guidelines as Kenya’s Virtual Asset Law Takes Effect

The National Treasury is set to roll out guidelines for implementing the Virtual Assets Service Providers Act, 2025 — a new law designed to curb money laundering and regulate digital assets, including cryptocurrencies

The Act, which took effect on November 4, 2025, establishes the legal framework for supervising and regulating Virtual Asset Service Providers (VASPs)

Treasury Cabinet Secretary John Mbadi is now expected to issue detailed regulations, guided by input from the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA)

The law outlines strict obligations for VASPs to prevent money laundering, terrorism financing, and proliferation financing. It also designates CBK as the licensing authority for stablecoins and other virtual assets, while the CMA will oversee the licensing of crypto exchanges and trading platforms

Kenyan lawmakers passed the bill on October 13 to bring order to the fast-growing digital asset space and attract investment through clear regulatory frameworks

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Finance Committee Chair MP Kuria Kimani noted that the Act draws heavily from established models in countries such as the United States and the UK

However, CBK and CMA have yet to license any VASPs under the new law

Kenya remains a global leader in mobile-based financial innovation, with M-Pesa continuing to provide essential financial services  from money transfer to savings and investment to millions nationwide

Writer : Mweru Mbugua