Nairobi, Kenya – Kenya’s ambitions to become a global blockchain and virtual asset powerhouse will depend on the government’s ability to craft regulations that balance innovation, taxation, and investor protection.
This is according to stakeholders who attended the Kenya Blockchain and Crypto Conference 2026 in Nairobi.
The conference, held from Thursday, May 14 to Friday, May 15, brought together regulators, investors, and crypto firms amid growing interest in digital assets across Africa and increasing efforts by governments to formalise the sector.
Govt view on new crypto assets regulations
Justus Agoti, Deputy Director for Market Deepening at the Capital Markets Authority (CMA), said Kenya’s regulators are working to ensure virtual asset markets operate transparently and efficiently as adoption accelerates.
“Things are moving very fast. We are trying to see what we can do to support more efficient execution of transactions,” said Agoti.
The director defended the proposed requirement that all virtual asset firms operating in Kenya establish a local presence before receiving licences.
“That will give us a foothold on what these entities are doing,” he said. “If anything goes wrong, it will be easy to follow up with the local office.”
The proposed regulations have raised concerns among some startups and crypto traders, who fear that high compliance costs could discourage innovation or drive activity into informal peer-to-peer trading.
However, Agoti argued that regulation is necessary to build trust and accountability within the industry.
“For a market to operate efficiently, certain things must be in place. The question is how much, or to what extent, that cost is prohibitive compared to the returns being accrued from the business,” he said.
What crypto stakeholders said about new regulations
Peter Mwangi of VALR echoed the need for regulation but stressed that the framework must remain inclusive for both local startups and multinational firms.
“I have been involved in the regulation process for the past three years. Kenya is in a unique position to have better regulations than any other player in the market,” Mwangi said.
According to Mwangi, investors are closely monitoring Kenya’s regulatory direction before committing capital to the sector.
“Yesterday at this event, I met investors seeking to bring in millions of dollars. They are waiting to see what will happen with the regulations,” he said.
Mwangi praised regulators for engaging industry stakeholders but called for adjustments to the proposed capital thresholds and transaction taxes.
“The transaction levy of 0.05% would hinder the adoption of virtual assets,” he warned.
Mwangi emphasised Kenya’s position as one of the strongest candidates to lead the continent’s blockchain economy, citing its long history with digital finance and mobile money innovation.
“Kenyans are very conversant with making digital payments. There are already six million Kenyans who use stablecoins,” Mwangi said.
Agoti revealed that the CMA’s goal is not to suppress innovation but to ensure stakeholders feel secure operating in the sector.
“There is significant engagement to ensure stakeholders feel comfortable,” he said.
Mwangi added that blockchain technology could eventually transform banking, stock trading, and sovereign debt markets across Africa.
“The future is promising. Africans and Kenyans will be able to access global markets from wherever they are,” he said.
What to know about Kenya Blockchain & Crypto Conference
The Kenya Blockchain & Crypto Conference, organised under the theme “Stablecoins, Payments and the Digital Economy in Africa,” brought together regulators, banks, fintech firms, blockchain startups and payment providers to discuss how digital assets can address inefficiencies in remittances and international trade.
According to Sheila Waswa, the organiser of the conference, the event focused on the practical use of stablecoins in reducing the cost and delays associated with cross-border transactions.
“One of the issues we have been grappling with, especially regarding cross-border payments, is how expensive, unreliable and slow it is to move money. Sometimes it can take up to two weeks. That is what we hope stablecoins can solve,” said Sheila.
Industry executives attending the conference argued that blockchain-based payment systems are already proving effective for businesses operating across multiple markets.
Apollo Sande, Kenya country manager for Luno, said stablecoins are increasingly used for remittances, treasury management, and international settlements, though adoption remains at an early stage.
“As far as cross-border payments are concerned, we have always depended on systems with multiple hops that take fees along the way and settle after two to three days. Stablecoins can address that, but there is still a significant knowledge gap and provider competence gap,” Sande said.
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