Kenya Treasury Pushes Back On New Crypto Tax Claims
Kenya says Finance Bill 2026 adds crypto reporting rules, not new taxes, as platforms face higher compliance duties.
What to Know:
Table Of Content
- Kenya’s Treasury says the Finance Bill 2026 does not introduce a new crypto tax.
- The bill focuses on reporting, record-keeping, and compliance for virtual asset platforms.
- Treasury says KRA cannot directly access M-Pesa accounts or private statements.
- KPMG says crypto platforms may face higher administrative and reporting costs.
Kenya’s Finance Bill 2026 has drawn attention from crypto users, fintech firms, and tax advisers. Treasury Cabinet Secretary John Mbadi says the bill does not create a new crypto tax. He says the virtual asset clauses strengthen reporting, records, and compliance rules.
Mbadi Says Virtual Asset Rules Address Reporting Gaps
Mbadi addressed the claims during a May 25 press briefing. He said digital asset activity has grown faster than Kenya’s current legal framework. He argued that weak reporting rules have left parts of the sector outside clear supervision.
Therefore, the bill seeks to bring virtual asset activity under standard business compliance. Mbadi said the proposal applies familiar record-keeping rules to the virtual asset sector. He used the phrase “emerging virtual asset sector” while explaining the changes.
He said the government wants tax equity across traditional businesses and digital asset platforms. However, he rejected claims that the bill targets ordinary crypto users with new taxes. Mbadi also denied reports about a new levy on digital content monetization. He addressed the claims as the online debate over the bill continued to widen.
Treasury Responds To Privacy And KRA Access Claims
The Treasury released infographics online to explain the disputed sections of the Finance Bill 2026. The material focused on crypto, content monetization, mobile money, and user privacy. Treasury officials said existing privacy and data laws still apply.
They added that the bill does not erase current protections for personal financial information. “KRA cannot access your M-Pesa account or statements,” the Treasury stated. The statement aimed to answer claims about direct state access to mobile money records.
Mbadi said the bill does not give KRA or police unchecked access to private data. He said enforcement agencies must still follow existing legal channels. The clarification came as public concern grew around tax enforcement and living costs. Treasury maintained that the bill focuses on formal reporting duties, not private phone access.
KPMG Sees Higher Compliance Costs For Platforms
KPMG’s technical review gave a separate reading of the proposed virtual asset rules. The firm said direct retail tax rates remain unchanged for crypto users. However, KPMG said virtual asset service providers may face higher administrative costs. These firms include exchanges, custodial wallets, token marketplaces, and related platform operators.
The review said covered platforms must submit detailed annual reports to KRA. It also said the bill connects Kenya to international tax information systems. That framework allows authorities to share transaction records and identity data with foreign tax jurisdictions. As a result, cross-border Web3 operations may face stronger documentation demands.
KPMG also flagged changes to management and professional fees. The expanded definition covers interchange fees and merchant service fees within card networks. The firm said the change may affect payment processors and fiat-to-crypto on-ramps. Platform-based fintech operations may also face clearer value-added tax treatment under the bill. The Finance Committee will review oral submissions before presenting a final bill to Parliament. Crypto firms and advisers continue to assess the compliance impact.
