Kenya’s Treasury Secretary Dismisses New Crypto Tax Claims in Finance Bill 2026

Table of Contents Kenyan Treasury Cabinet Secretary John Mbadi is pushing back against claims that Finance Bill 2026 introduces new crypto taxes. Speaking at a press briefing on May 25, Mbadi stated that the bill’s virtual asset changes focus strictly on compliance. He said the proposals address regulatory gaps in the digital asset sector. The Treasury also released official infographics online to support his position and calm growing public concern. Mbadi made his position clear during the May 25 press briefing. He said the rapid growth of digital asset transactions has exposed gaps in Kenya’s existing legal framework. The absence of clear reporting obligations has left the sector largely unregulated. The Finance Bill 2026, he argued, simply seeks to fix that. “The proposal seeks to apply reporting and record-keeping principles that are already common within traditional financial and commercial activities to the emerging virtual asset sector,” Mbadi said. He stressed that the changes bring digital assets in line with how traditional businesses already operate. The goal, he maintained, is tax equity, not new revenue extraction from crypto users. Mbadi also dismissed reports of a new tax on digital content monetization. He addressed several other controversial rumors circulating online and in public forums. These included concerns about government surveillance of personal mobile money accounts. The Treasury later confirmed that KRA cannot access M-Pesa accounts or personal smartphone files. “Existing data protection and privacy laws remain fully in force. So, KRA cannot access your Mpesa account or statements,” the Treasury stated. Mbadi added that the bill does not grant KRA or law enforcement unchecked access to private transaction data. The clarifications came as public anxiety over the bill was rising alongside broader cost-of-living concerns. Despite Mbadi’s reassurances, an independent KPMG technical review tells a different story for businesses. The firm confirmed that direct retail tax rates remain unchanged for crypto users. However, KPMG warned that Virtual Asset Service Providers will face significantly higher operational and administrative costs. Exchanges, custodial wallets, and token marketplaces must now submit comprehensive annual reports to the KRA. The bill also connects Kenya to international compliance networks. Statutory language allows Kenyan authorities to share transaction records and user identity data with foreign tax jurisdictions. This move embeds Kenya into global cross-border compliance frameworks. It creates a permanent digital trail for multi-jurisdictional web3 operations. KPMG further noted that the bill expands the definition of “management and professional fees.” The expanded scope now covers interchange and merchant service fees within card networks. This change adds fiscal friction for cross-border payment processors and fiat-to-crypto on-ramps. Platform-based fintech operations may also face formalized value-added tax parameters under the bill. The Finance Committee will now compile oral submissions before presenting a final bill to Parliament. The crypto industry continues to monitor how the compliance-focused changes will reshape Kenya’s digital asset landscape.