Kenya is planning to introduce a 3% tax on the transfer of digital assets, including cryptocurrencies and non-fungible tokens, according to proposals for the 2023 finance bill presented to lawmakers. Monetized online content will also be subject to a 15% tax. The Kenyan Treasury considers digital assets as property, and any gains from their sale, exchange, or disposal are subject to capital gains tax. Kenya ranks fifth globally in terms of cryptocurrency ownership, with 8.5% of the population owning crypto, according to a report by the United Nations Conference on Trade and Development. The proposal reflects global regulatory scrutiny of the cryptocurrency industry, with regulators increasingly concerned about the risks posed by unregulated cryptocurrency exchanges, such as fraud, money laundering, and market manipulation. 

Kenya's lawmakers are considering the introduction of a 3% tax on cryptocurrency and nonfungible tokens (NFTs) transfers and a 15% tax on monetized online content, according to a newly introduced bill.

The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents. According to a report by Business Daily Africa, Kenyan authorities will rely on the 1.5% digital tax service that became effective on Jan.1, 2021.

A bill seeking to put blockchain and crypto assets under the purview of the Kenyan Capital Markets Authority is supposedly set to be debated in the country’s parliament. The bill also seeks to “widen the meaning of ‘securities’ to capture digital currencies.” The persons that receive licenses from the regulator are also required to maintain records of all digital currency transactions and to pay taxes on any gains made.

The Kenyan Senate’s Information, Communication and Technology committee has said it is ready to engage the Central Bank of Kenya (CBK) and other stakeholders in shaping the country’s policy towards crypto assets and virtual asset service providers. According to the committee, such a policy helps govern the use of crypto assets in the country “to ensure Kenya harnesses the benefits of financial innovation while minimizing the risks.”

A rural village in Kenya has been using off-grid energy generated using hydropower to mine Bitcoin (BTC) and power 500 families nearby.

Lawmakers in Kenya are debating the Capital Markets (Amendment) Bill 2022 which seeks to introduce crypto taxation to crypto exchanges, digital wallets and individual transactions. Local publication Business Daily reports that a bill sponsored by MP Abraham Kirwa is seeking to introduce a 20% excise tax on every cryptocurrency transaction executed in the country.