Kenya looks at new regulations to tax crypto

Kenya is reportedly considering enforcing new regulations that will tax crypto exchange platforms like Binance and Bitmama.

Business Daily reports that crypto platforms operating in Kenya may soon have to pay a 1.5% duty on every transaction they make, per the Value Added Tax (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023.

Kenya has repeatedly ranked top of cryptocurrency adoption on the continent, beating out South Africa and Nigeria. The country is also ranked first globally for peer-to-peer crypto trading volume and fifth overall for crypto trading activity.

In fact, some studies suggest that at least 10.7% of Kenyans—about 6 million people—own crypto.

With that many crypto transactions being made, a 1.5% duty could generate income for Kenyan authorities and strain crypto exchange platforms.

Last year, the country also announced an amendment to its Capital Markets Bill to introduce a 20% excise tax on every crypto transaction fee charged in the country. Another 1.5% tax would mean more charges for crypto exchange platforms, and higher fees for crypto traders who are turning to crypto to avoid currency devaluation.