Kenya Lowers Stablecoin Capital Rule to $2.32M, Eases Entry for Global Issuers
Kenya has reduced the minimum paid-up capital required for stablecoin issuers by 40% to $2.32 million. The National Treasury published the revised threshold, marking a significant shift from the nearly $3.9 million proposed in draft rules last March.
The move is aimed at easing entry into Kenya's rapidly growing crypto market, which ranked fifth globally in crypto adoption in Bybit's 2025 World Crypto Ranking. Stablecoins are driving cross-border payments and serving as a hedge against currency volatility in the East African nation that processed tens of billions of dollars in 2024.
The Central Bank of Kenya will enforce strict oversight measures, including 1-to-1 reserve backing and 2-day redemptions for stablecoin issuers. Financial obligations differ across operators, with issuers requiring $2.32 million in paid-up capital compared to $1.16 million for wallet providers.
The regulations prohibit interest or rewards tied to how long customers hold stablecoins, instead encouraging competition on payment and settlement efficiency. Issuers must conduct quarterly stress tests, file monthly reserve and transaction reports, and ensure customers can redeem tokens at face value within two business days.