Kenya Proposes Stablecoin-Based Payment Rules Amid Regulatory Clarity

The Central Bank of Kenya (CBK) and the National Treasury are proposing new rules for crypto-based transfers that could open the door to stablecoin-based payment and remittance products.

The draft National Payment System Policy, 2026, aims to bring stablecoins and tokenised assets under formal CBK and Capital Markets Authority (CMA) supervision.

This intersection is expected to provide new mechanisms for financial flows, potentially giving regulated virtual-asset businesses a larger role in cross-border money transfers.

Experts have raised concerns that limiting access to widely used dollar-backed stablecoins like USDT and USDC could fragment the digital payments market, reduce liquidity, and make international transactions more expensive.