Kenya Paves Way for Tokenized Real-World Assets with New Regulations

Kenya has become the first country to formalize its approach to tokenizing real-world assets, introducing regulations that allow businesses to issue digital tokens representing ownership or economic rights in tangible and intangible assets.

The new rules, outlined in the Virtual Asset Service Providers Regulations, 2026, permit companies to create blockchain-based tokens for various types of assets, including land, buildings, and other real-world assets. To operate a tokenization business, firms must maintain at least KSh 10 million in paid-up capital and liquid capital of KSh2 million or 8% of total liabilities, whichever is higher.

The regulations require issuers to submit their tokenization systems for an independent audit and pay various fees, including a KSh100,000 application fee and a KSh500,000 license fee. Each individual offering also requires separate approval from the Capital Markets Authority (CMA), attracting a fee equivalent to 0.25% of the value of the successful offering.