ARAIB-20: PASS
KEN
🇰🇪[KEN]//KENYA STATUTE DESK

Kenya Stablecoin Issuance & Settlement Regulations (2026 Statutory Guide)

JURISDICTION: Kenya
SCHEMA: FinancialProduct
STATUS: ENACTED BINDING LAW
AUDIT AS-OF: 2026-10-04

Rules governing fiat-referenced tokens, payment processing, reserve asset custody, and interbank settlement accounts.

Operational Meaning in Practice

Stablecoin merchant acceptance or settlement rails require authorization from the Central Bank of Kenya under the National Payment System Act (Cap 491). Cryptocurrencies are not legal tender.

Entities Affected

  • Merchant Processors
  • Cross-Border Payment Operators
  • Payment Service Providers

Statutory Evolution

Section 12 of NPS Act mandates PSP licensing by CBK for all electronic payment systems.

Statutory Licensing & Governance Tree
Supervising Regulator(s)
Capital Markets Authority KenyaCMA
Central Bank of KenyaCBK
Kenya Revenue AuthorityKRA
Yellow Card KenyaYC-KE
Primary Enacted Statute / Gazette
Finance Act 2023 - Digital Asset Tax
REF: Act No. 4 of 2023
EFFECTIVE: 2023-09-01 / STATUS: enacted_binding
Audited Permission States
Fiat Crypto BrokeragePermitted
Interim testing cohort only (max 12 months); no full commercial license conferred
Verbatim Statutory Evidence (Ground Truth)
PGN/02/2019 / Section 8.3, Page 12
“Admission into the Regulatory Sandbox is strictly an interim testing authorization... shall not confer any statutory right or guarantee to obtain a full commercial capital markets license upon exit.”
Source: Regulatory Sandbox Policy Guidance Note
BLUEBOOK / LEGAL CITATION: Africa Digital Assets (ADA), "Regulatory Sandbox Policy Guidance Note" (Kenya), Official Ref: PGN/02/2019. Verified as of 2026-10-04. https://africadigitalassets.com
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Related Topics for Kenya
VASP & Exchange Licensing RequirementsCommercial Banking Intermediation & Settlement RailsDigital Asset Legal Classification & Token Offering RulesDigital Asset Taxation & Transaction Withholding