ChainCatcher report: Kenya’s National Treasury has reduced the minimum paid-in capital requirement for stablecoin issuers by 40%, to approximately $2.32 million, below the nearly $3.9 million threshold in last March’s draft regulations. Under the new framework, the Central Bank of Kenya (CBK) will regulate stablecoin issuers and other virtual asset service providers, and may require local platforms to cease offering tokens issued offshore. The framework mandates that at least 30% of customer funds be held in independent trust accounts with Kenyan commercial banks, with the remainder invested in qualified local assets. Fiat-backed stablecoin reserves must be aligned with the pegged currency. Issuers must maintain the higher of $463,300 in liquid capital or 100% of liquid liabilities and hold qualified reserve assets on a 1:1 basis. Issuers are also required to conduct quarterly stress tests, submit monthly reserve and transaction reports, and ensure customers can redeem tokens at par value within two business days.
Kenya Reduces Stablecoin Issuer Capital Requirement by 40% to $2.32M
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Summary
Kenya’s National Treasury has reduced the minimum paid-up capital requirement for stablecoin regulation to $2.32 million, a 40% decrease from the $3.9 million proposed in March 2025. The Central Bank of Kenya (CBK) will now supervise stablecoin issuers and enforce Countering the Financing of Terrorism (CFT) compliance. Issuers must hold 30% of client funds in segregated trust accounts at local banks and maintain reserves equivalent to the pegged currency. A minimum liquidity capital of $46,330 is required, along with quarterly stress tests and monthly reporting. Redemption must be guaranteed within two business days.
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