Kenya’s Treasury Secretary John Mbadi said Finance Bill 2026 introduces reporting rules, not new taxes on crypto users or creators. Crypto exchanges and VASPs would face stricter disclosure,
Kenya’s Treasury Secretary John Mbadi has rejected claims that Finance Bill 2026 introduces new cryptocurrency taxes, saying the proposals focus on compliance and reporting gaps. Mbadi addressed the issue amid growing public criticism over the bill and concerns surrounding digital transaction monitoring. According to Treasury officials, the proposed changes aim to formalize reporting obligations for virtual asset activities already operating outside existing legal structures.
Mbadi said the fast growth of digital asset transactions exposed weaknesses within Kenya’s legal and reporting systems. He added that the government wants virtual asset businesses to follow record-keeping standards already used in traditional finance sectors.
According to Mbadi, the proposals do not create new taxes targeting crypto users or digital content creators. Instead, the bill focuses on reporting obligations tied to digital asset transactions.
However, KPMG’s technical review of the bill highlighted major operational changes for crypto-related businesses. The analysis stated that Virtual Asset Service Providers would face new annual disclosure requirements under the Tax Procedures Act.
Those requirements would apply to crypto exchanges, custodial wallet providers, and token marketplaces operating in Kenya.
KPMG also stated that the bill strengthens Kenya Revenue Authority reporting powers beyond domestic activity tracking. The analysis noted that Kenyan authorities could exchange transaction and identity data with foreign tax jurisdictions.
As a result, cross-border digital asset transactions may become easier for regulators to trace. KPMG added that the framework creates permanent reporting trails for capital gains and multi-jurisdictional Web3 operations.
Meanwhile, the report warned that compliance costs for digital asset firms could rise sharply. Companies may need additional transaction-monitoring systems and reporting infrastructure to meet the proposed requirements.
Mbadi also responded to concerns involving privacy and mobile money surveillance. Public debate intensified after claims circulated that authorities could access personal M-Pesa records and smartphone files.
However, Treasury officials denied those allegations. According to an official Treasury statement, existing data protection and privacy laws remain fully active under the proposed bill.
KPMG further noted that broader tax adjustments could affect card networks and fiat-to-crypto payment channels. The report highlighted expanded interpretations of interchange and merchant service fees under Kenya’s Income Tax Act.
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