Kenya Crypto License

Kenya is often referred to as the “Silicon Savanna” of Africa due to its strong fintech ecosystem. As crypto regulation across Africa continues to develop, Kenya has already begun addressing crypto activities, allowing early applicants to establish a presence ahead of broader regional adoption.

Structured Requirements

There is no statutory limit on the number of shareholders or directors for a private limited company in Kenya. However, at least one director and one shareholder are required under the Companies Act, 2015. It is advisable to appoint at least one local director or representative to facilitate communication with regulators and local authorities. Crypto-related entities must also designate an Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance officer in accordance with the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) and the Central Bank of Kenya (CBK) guidelines. This officer is responsible for implementing internal controls, reporting suspicious transactions, and ensuring adherence to AML/CFT obligations. The company must maintain a registered office in Kenya and a local physical presence sufficient to support its operations. All incorporation forms, beneficial ownership declarations, and compliance filings must be properly completed and submitted to the Registrar of Companies and other relevant authorities.

Tax Rate

Resident companies are subject to a corporate income tax rate of 30% on taxable profits. Non‑resident companies with a permanent establishment (branch) in Kenya are also taxed at 30% but are subject to an additional 15% branch repatriation tax on profits remitted to the foreign head office. For crypto transactions, the Finance Act 2025 repealed the 3% Digital Asset Tax and replaced it with a 10% excise duty on the transaction fees (commissions) charged by VASPs, rather than on the underlying transaction value.

Minimum Share Capital

There is no general statutory minimum share capital requirement for most private limited companies under Kenyan company law. However, under the Virtual Asset Service Providers Act, 2025, applicants for a VASP licence must demonstrate financial soundness and capital adequacy, with specific minimum capital and solvency requirements to be prescribed by the relevant regulator in guidelines and licensing conditions. In practice, crypto‑related businesses are expected to maintain paid‑up capital sufficient to cover operational expenses, technology and cybersecurity investments, compliance and reporting costs, and the risks associated with their activities, and capital expectations are calibrated by regulators according to the scale, complexity, and risk profile of the proposed business.