Kenya is positioning itself to become Africa’s leading blockchain and cryptocurrency hub, with regulators and industry players calling for balanced regulations that encourage innovation while protecting investors.
Speaking at the Kenya Blockchain and Crypto Conference 2026, officials from both government and the private sector said the country’s proposed virtual asset regulations could unlock billions in investment and cement Kenya’s place in the global digital economy, if implemented inclusively.
Justin Saboti, Deputy Director at the Capital Markets Authority (CMA), said regulators are keen to understand the fast-changing blockchain landscape and create an environment where innovation can thrive safely.
“As a regulator, we have come to attend this session looking at issues around blockchain, digital currency and what is happening in that space,” Saboti said. “We are trying to see exactly how we can provide facilitation for this market to grow.”
Saboti noted that technological advancements and changing financial systems have made it necessary for regulators to modernise oversight frameworks, especially in the virtual asset sector.
“The Act is very clear. Any firms that want to play in the space of virtual assets in Kenya must be registered in Kenya or have a representative office here. Without that, you are not going to be licensed.”
According to the CMA official, requiring crypto firms to establish local offices would help authorities enforce regulations and protect investors in case of disputes or fraud.
At the same conference, Peter Mwangi, Country Manager for VALR, praised Kenya’s approach to regulation, describing the draft framework as one of the most progressive in the industry.
“Kenya is properly placed to become the capital of virtual assets, not just in Africa but also globally,” Mwangi said.
Mwangi said Kenya’s deep adoption of mobile money and digital payments gives it a competitive advantage over many global markets.
“This is not the first time that Kenyans will be holding digital wallets. We live in digital wallets,” he said, adding that more than six million Kenyans already use stablecoins for remittances, investments and cross-border payments.
Both speakers acknowledged concerns from industry players over compliance costs and proposed transaction levies under the new regulations.
Saboti defended the need for oversight, saying efficient markets require rules and enforcement mechanisms.
“No game does not have rules,” he said. “The cost of non-compliance is prohibitive.”
Mwangi, however, urged regulators to review some provisions, particularly proposed capital requirements and the planned 0.05 percent transaction levy.
