Kenya aligns regulators and industry in push to become Africa’s digital finance hub

The high-level Kenya VASP Roundtable, hosted by the Office of the Special Envoy on Technology in collaboration with the Virtual Assets Chamber of Commerce, brought together senior officials from the National Treasury, Central Bank of Kenya, and Capital Markets Authority, alongside leading domestic and international virtual asset service providers and financial institutions.

The discussions focused on translating the VASP Act into a practical, forward-looking regulatory framework that supports innovation while safeguarding market integrity and consumer protection. Stakeholders emphasised the need for a globally compatible regulatory approach that attracts investment while maintaining high oversight standards.

Participants also agreed on prioritising the licensing and supervision of VASPs as primary market intermediaries, with clear standards for token listing, disclosure, and risk management. Discussions highlighted balanced policies on reserve requirements, licensing structures, reciprocity frameworks, and levy design to ensure market stability and growth.

Regulators and industry players stressed the importance of future-proofing the regulations to accommodate emerging trends, including AI-enabled commerce and evolving financial technologies.

The roundtable reinforced the value of continuous engagement between regulators and industry players, with structured follow-up mechanisms planned to address emerging challenges and co-create solutions that support responsible innovation.

Priority action areas identified include refinement of draft VASP regulations, development of clear operational guidelines for market participants, enhanced coordination among regulatory bodies, and continued stakeholder consultations to ensure inclusive policy development.

“This roundtable marks an important milestone in Kenya’s journey toward building a transparent, secure, and innovation-friendly virtual asset ecosystem. The collaborative approach demonstrated today will be critical in ensuring effective implementation of the VASP Act and positioning Kenya as a leader in digital finance,” said a representative from the Office of the Special Envoy on Technology.

The Kenya VASP Roundtable is part of ongoing efforts to implement the VASP Act, 2025, and foster sustained dialogue between policymakers and industry stakeholders, signalling Kenya’s ambitions to be at the forefront of Africa’s emerging digital finance sector.