Proposed amendments in the Finance Bill 2026 could enable Kenya Revenue Authority to have access to the records of crypto transactions. The proposed law is currently under consideration by the parliament.
For those who don’t know, it aims to demand annual reports from crypto exchanges and virtual asset service providers. The data is expected to help authorities understand how consumers in Kenya use digital assets.
Requirements & Penalties Under Proposed Amendment In Kenya
The proposed amendments to the Tax Procedures Act would require platforms to report on the purchase price, the sale value, profits, wallet activity and crypto payments made to cover goods and services. Moreover, regulators are now seeking stricter accountability measures for inaccuracy in reporting.
The bill would punish anyone who provides false data with a fine of KSh 100,000 per incorrect entry. It could also lead to a prison term of up to three years or even both of these penalties. In addition, the same sanctions would apply if any information is missing from the filings.
The proposal also brings in provisions for international information sharing. This would imply that cross-border tax jurisdictions in Kenya may be able to share tax data on cryptocurrencies with each other.
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Why It Matters
The push for new reporting takes Kenya one step towards the framework for crypto transparency dozens of other countries are implementing. The regulations are consistent with the OECD Cryptoasset Reporting Framework, which will take effect on January 1, 2026.
Starting in 2027, tax agencies will automatically share cryptocurrency transaction data in over 40 jurisdictions. Moreover, Kenya’s proposed system would place the nation in the forefront of adopting that system in Africa.
Thus, the government has already made some stringent changes in the crypto taxation in recent years. In 2023, Kenya enacted a 3% tax on digital assets, from which exchanges were mandated to withhold taxes on digital asset trades. This was subsequently superseded by the Finance Act 2025, which introduced an excise duty of 10% on transaction fees paid for crypto platforms.
However, this new initiative is not tax-based, but rather much more transaction visibility and user identification.
Also Read: Binance Founder CZ Says African Countries Asked For Advice On Crypto Regulation
User Anonymity In Danger Amid Kenya’s Crypto Boom
Even in the face of years of warnings from regulators, the crypto market in Kenya has taken off in a rapid manner. The authorities estimate that crypto transactions totalled approximately KSh 2.4 trillion (US$18.5 billion) in the country between 2021 and 2022. This surge was driven mainly by cross-border transactions and payments for imports.
Nonetheless, now the anonymity factor of crypto is under threat. Under the bill, Binance and Coinbase, the major exchanges, would be acting as reporting agents. They would have to collect and provide information on user transactions to the Kenya Revenue Service.
The tougher compliance requirements would also raise the bar for global crypto exchanges that serve customers in the region.
