Kenya's Crypto Startups Eye Offshore Shift Amid Tough New Rules

Kenyan cryptocurrency startups are considering shifting their operations to Mauritius and South Africa due to new licensing requirements that could make it difficult for them to remain competitive in the local market.

The regulations, which were gazetted on July 22, 2026, set minimum paid-up capital thresholds for various virtual asset businesses. For instance, virtual asset exchanges require a minimum of Sh100 million, while crypto wallet providers face a requirement of Sh150 million. Stablecoin issuers must have at least Sh300 million.

However, some startup founders argue that these requirements could disadvantage young companies that have not yet raised substantial venture capital or built large customer bases.

Mauritius offers lower capital requirements for several categories of virtual asset businesses. A crypto exchange operating there would require roughly Sh18 million in minimum capital, while a broker would need about Sh5.5 million and a virtual asset custodian about Sh14 million.