Kenya’s Finance Bill 2026 Proposes 10% Excise Duty on Crypto Fees
Kenya’s Finance Bill 2026 would impose new taxes, licensing costs, and reporting obligations on crypto platforms, reflecting a broader push to expand tax collection across digital and financial services.
Fact Check
The KPMG Finance Bill 2026 Analysis explicitly confirms expansion of excise duty scope to Virtual Asset Providers and lists many of the other measures (deemed dividends, EAC dividend WHT changes, expanded royalty/payment scope) referenced in the claim. Cryptopolitan and crypto.news independently report the specific 10% excise duty on VASP fees, licensing costs (KSh 150M one-off + KSh 2M annual), and KRA reporting obligations. Afriwise notes the 10% excise on virtual asset transactions was already introduced by the Finance Act 2025, consistent with the Finance Bill 2026 expanding/maintaining the regime. The headline claim is well supported by an authoritative tax-advisory source and multiple corroborating news reports.
Summary
Kenya’s Finance Bill 2026 proposes a 10% excise duty on fees charged by Virtual Asset Service Providers (VASPs), along with a one-time KES 150 million licensing fee, a KES 2 million annual renewal fee, and annual reporting of user and transaction details to the Kenya Revenue Authority (KRA). The bill’s crypto provisions are part of a wider tax package affecting digital payments and financial services. The new input reiterates the core VASP measures but does not materially change the previously reported details.
Terms & Concepts
- Virtual Asset Service Providers (VASPs): Companies that provide crypto-related services such as exchanges, trading platforms, custody, or transfers.
- Excise duty: A tax levied on specific goods or services; in this case, it would apply to fees charged by crypto platforms.
- Kenya Revenue Authority (KRA): Kenya’s national tax authority, responsible for tax administration, collection, and enforcement.