Nearly a third of Kenyan banks are set to start facilitating crypto deals. The interest was sparked by the government’s intentions to legalize and regulate crypto amidst increasing illicit activities.
The report came out of a survey done by the Central Bank of Kenya (CBK). According to the survey, commercial and microfinance banks said that the assets could provide potential opportunities in enhancing financial access to the unbanked.
“31% of the respondents indicated that they were highly likely to undertake activities in the area of virtual assets,” CBK’s Innovation Survey says.
The report also indicated that they were “highly likely” to undertake activities in cryptocurrencies like Bitcoin and Ethereum, as well as non-fungible tokens(NFTs) and digital tokens. The findings signal a shifting view of banks about virtual assets on the back of increased use across sectors such as finance, entertainment, real estate, and art.
This report comes after the US banks consequently dealt with debanking. Also, as reported by Cryptopolitan, JPMorgan will start counting crypto assets in some clients’ net worth calculations, putting Bitcoin and other digital holdings in the same category as stocks, cars, and artwork.
Kenyan banks emphasize the need for a regulatory framework
According to the United Nations Trade and Development (UNCTAD), the government has seen a lot of potential in the crypto market. There are about four million users of crypto in the country.
The report states, “Most financial institutions (35 percent) emphasized the need for regulatory frameworks governing digital innovation. This includes areas such as digital lending, open banking, application programming interfaces standardization, digital identity blockchain, virtual assets including crypto assets, and digital-only banking.”
Kenya was put on the Financial Action Task Force’s (FATF) “grey list” in 2014 because it didn’t have a clear plan for prosecuting money laundering crimes, among other things. Another problem was that no rules were in place to monitor and control how crypto was used.
However, recently, the government moved to regulate the sector through the Virtual Asset Service Providers Bill 2025. This law requires crypto companies that do business in the country to set up local offices and hire directors, but only after getting approval from regulators like the Capital Markets Authority (CMA).
Crypto taxes reduced by half
In addition, the Kenya Revenue Authority (KRA) has also said that it will create a new tax system that includes real-time tracking of crypto transactions. This is so that the government can use the local crypto sector to catch tax cheats and criminals.
At the same time, the government has tried to encourage people to use crypto. The National Treasury is cutting the 3% tax on the sale of digital assets that was put in place in 2023 by half, to 1.5%, in the 2025 Finance Bill. However, this was after the Kenyan crypto companies teamed up against what they called the country’s controversial 3% digital asset tax (DAT).
🚨 Crypto Tax Showdown in Kenya 🇰🇪@PwC has officially joined forces with top Kenyan crypto firms, including Busha, Kotani Pay, Luno & Swypt, to fight the controversial Digital Asset Tax (DAT).
🟠From 3% to 1.5%, but the industry says it’s still unfair.
🟠Parliament has… pic.twitter.com/uuH9HSYps4— TawkCrypto (@Tawkcrypto) June 2, 2025
According to Cabinet Secretary John Mbadi, the levy was lowered to make it the same as the 1.5% turnover tax that businesses with a total turnover of Ksh.1 million to Ksh.25 million a year pay.
Meanwhile, the Nairobi Securities Exchange (NSE) took its biggest step yet into the crypto world by teaming up with DeFi Technologies to launch the Kenya Digital Exchange (KDX).
The platform is meant to enable digitization and trading of intangible assets, like equities, debts, exchange-traded funds, and tangible commodities, such as gold and oil, all on a blockchain-based system.
