Kenya Proposes 10% Tax on Virtual Asset Service Providers in 2026 Finance Bill

Kenya's 2026 Finance Bill proposes a 10% consumption tax on virtual asset service providers. According to Odaily, the bill also mandates that cryptocurrency companies pay a one-time licensing fee of 150 million Kenyan shillings and an annual renewal fee of 2 million Kenyan shillings before operating locally. Additionally, these companies must submit annual reports to the Kenya Revenue Authority, detailing user and transaction information. Analysts suggest that this move could lead some crypto platforms and users to relocate to countries with more favorable regulations for the crypto industry, potentially weakening Kenya's position in the African crypto market. Furthermore, protests led by Gen Z have resumed in Nairobi and other areas, opposing the increased tax burden on digital services, cryptocurrencies, mobile, and financial transactions.