Kenya Gazettes Crypto Rulebook, Bans Stablecoin Interest, Sets November Deadline

The Virtual Asset Service Providers Regulations, 2026, have been gazetted in Kenya, bringing one of Africa's most comprehensive crypto frameworks into enforceable law.

The regulations prohibit stablecoin issuers from paying interest and give operators until November 4th, 2026 to get licensed. This deadline is a hard one for firms already trading in the country, including Luno, Busha, Kotani Pay, and Binance.

The rulebook divides supervision between Kenya's Central Bank of Kenya (CBK) and Capital Markets Authority (CMA), with the CBK overseeing virtual-asset-to-fiat conversion services and stablecoin issuers. The CMA regulates exchanges, token issuance platforms, initial coin offerings, and tokenization activities.

The regulations also create dedicated regimes for stablecoins, tokenized real-world assets, ICOs, wallet providers, cybersecurity, advertising, and market conduct, making Kenya one of the few jurisdictions with bespoke rules for each segment. The capital bar is a significant filter, with stablecoin issuers required to hold KSh300 million (approximately $2.3 million) in paid-up capital plus liquid capital of KSh60 million (approximately $465,000).

The interest ban effectively separates a stablecoin's function as a payment and settlement instrument from its use as a yield product, targeting reward-bearing models some platforms have used to attract deposits.