Kenya has moved a step closer to implementing its new cryptocurrency regulatory framework after Chief of Staff and Head of Public Service Felix Koskei received a briefing on the implementation of the Virtual Asset Service Providers (VASP) Act, 2025 and the accompanying Draft Virtual Asset Service Providers Regulations, 2026.

The briefing was attended by the Nairobi International Financial Centre (NIFC) team, led by CEO Daniel Mainda, along with Ronald Inyangala, Director of the Financial and Sectoral Affairs Department (FSAD) at the Kenya National Treasury.

Koskei later shared details of the briefing on social media:

"I received a briefing on the Virtual Asset Service Providers Act and the Draft Virtual Asset Service Providers Regulations, 2026. I encouraged all stakeholders to support the implementation of the legal and regulatory framework, which will protect the public, boost confidence…" pic.twitter.com/GcUH4T3dqO — BitKE (@BitcoinKE) July 23, 2026

In a full statement following the meeting, Koskei elaborated on the objectives of the Act and the draft regulations:

"The Act and proposed regulations seek to establish a clear framework for the licensing and regulation of Virtual Asset Service Providers and support the growth of a safe, transparent and well-regulated virtual asset sector in Kenya. The framework was informed by a national risk assessment, which identified gaps in legal and regulatory oversight, consumer protection, risk management, public awareness and supervision. It is designed to safeguard financial stability, strengthen market integrity, combat money laundering and terrorism financing, while supporting responsible innovation. The Draft Virtual Asset Service Providers Regulations, 2026, are expected to be finalised soon. I encouraged all stakeholders to support the implementation of the legal and regulatory framework, which will protect the public, boost confidence in the sector, and support innovation."

The NIFC has previously emphasized its approach to virtual asset regulation, with its CEO stating at WEF 2026 that the authority will "compete on regulatory quality, not regulatory arbitrage for financial and virtual assets services."

The meeting comes as Kenya prepares to operationalise the VASP Act, with the November 4, 2026 transition deadline fast approaching for virtual asset service providers to comply with the new licensing and regulatory requirements. Kenya's central bank and capital markets regulator have previously confirmed that no VASPs have been licensed under the Act to operate in or from Kenya.

Kenya ranks among Africa's largest cryptocurrency markets by transaction volume, alongside Nigeria and South Africa, according to data from blockchain analytics firms including Chainalysis. The regulatory push comes as several African jurisdictions are advancing their own digital asset frameworks, with South Africa having declared crypto assets as financial products under its Financial Advisory and Intermediary Services Act and Nigeria's SEC operating a digital asset token issuance portal.

The latest update signals that the government is entering the final stages of putting the country's crypto regulatory framework into effect. Once the regulations are gazetted, crypto exchanges, wallet providers, custodians, brokers, and other virtual asset businesses operating in Kenya will have greater clarity on licensing requirements, compliance obligations, anti-money laundering controls, and consumer protection standards.

President William Ruto signed the Virtual Asset Service Providers Act, 2025 into law, giving Kenya its first comprehensive legal framework for regulating the cryptocurrency industry. The law introduced mandatory licensing for virtual asset service providers, established oversight by designated regulators, and aligned Kenya with recommendations from the Financial Action Task Force (FATF). This alignment is notable as FATF has repeatedly urged jurisdictions worldwide to implement its Travel Rule and comprehensive VASP oversight standards to prevent regulatory gaps that could be exploited for illicit finance.

With the draft regulations now nearing completion, attention is shifting from legislation to implementation. The regulations are expected to detail licensing procedures, capital requirements, governance standards, reporting obligations, and ongoing supervision. The Central Bank of Kenya has already begun advertising VASP licensing and oversight positions in preparation for the new regulatory regime.

For crypto businesses operating in Kenya, the focus now turns to preparing for compliance ahead of the November 2026 deadline as the country moves toward a fully regulated digital asset market.