ChainCatcher report, according to Cryptopolitan, Kenya’s 2026 Finance Bill proposes a 10% consumption tax on virtual asset service providers—twice the 5% rate imposed on the gambling industry. The bill also requires cryptocurrency companies to pay a one-time licensing fee of KES 150 million and an annual renewal fee of KES 2 million before operating in Kenya, along with submitting annual reports to the Kenya Revenue Authority containing user and transaction details. Analysis suggests this move may force crypto exchanges and users to relocate their operations to countries more favorable toward cryptocurrencies, diminishing Kenya’s significance in the African crypto market. Protests led by Gen Z have reignited in Nairobi and other areas, opposing increased taxes on digital services, cryptocurrencies, mobile devices, and financial transactions.
Kenya's 2026 Budget Bill Proposes a 10% VAT on Crypto Exchanges
ChaincatcherShare
Summary
Kenya’s 2026 budget bill introduces a 10% VAT on crypto exchanges, double the rate applied to gambling. Firms must pay a 150 million shilling license fee and a 2 million shilling annual renewal fee. On-chain news reveals the requirement for regular reporting to the Kenya Revenue Authority. Analysts warn that this move could drive crypto industry activity and innovation to more favorable jurisdictions. Protests in Nairobi underscore rising resistance to digital service taxes.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.