Kenya Narrows Crypto-Offshore Gambling Escape Valve in Finance Bill 2026

Kenya’s Finance Bill 2026, tabled April 30, proposes mandatory annual reporting for virtual asset service providers (VASPs) and reintroduces a 20% withholding tax on gambling winnings. The VASP reporting amendment would require exchanges, trading platforms and intermediaries to file annual information returns with the Kenya Revenue Authority and paves the way for cross-border data-sharing under the OECD’s CARF (targeted for 2028–29). The bill also broadens excise definitions to capture chips/tokens and raises mobile phone excise duties, while layering the 20% gambling withholding on top of an existing 5% withdrawal withholding. Market impact: tighter compliance and higher tax burdens narrow offshore migration options for Kenyan crypto/gambling users, increase compliance costs for VASPs, and create downside pressure on locally-facing crypto and iGaming activity until firms adjust or migrate operations.