Kenya Drop 3% Crypto Tax, Put 10% Excise Duty

Kenyan lawmakers don scrap one planned 3% digital asset tax after local and regional virtual asset service providers (VASPs) do heavy lobbying. Section 12F for 2025 Finance Bill dem remove, replace am with 10% excise duty on transaction fees wey exchanges and wallets dey charge. This one fit affect di cost of trading for Kenya. Virtual Assets Chamber of Commerce (VAC), wey PwC dey advise and get support from companies like Busha, Swypt, Kotani Pay and Luno, champion di repeal and talk say crypto assets make dem dey treated as property wey only capital gains tax dey on top, and make VASPs become financial institutions. Di final law talk say make Central Bank of Kenya, Capital Markets Authority, Competition Authority, Communications Authority plus Data Protection Commissioner jointly regulate crypto. Critics warn sey VAC seat for new regulatory board—wey dem see as Binance proxy—fit bring conflict of interest. VAC director Basil Ogolla defend the arrangement, say dem don dey engage IMF, CBK and Parliament for two years. Smaller VASPs still dey worry how Binance dey influence Kenya crypto regulation.