Kenya's GenZ protests resume as 2026 finance bill imposes harsh regime for crypto traders

Kenya’s Finance Bill 2026 proposes heavy new taxes and compliance requirements on crypto activity that could hit market activity and platforms. The bill would levy a 10% excise duty on fees charged by VASPs, require a one‑off KSh 150 million (reported ~$1.1m) licence fee plus KSh 2 million (reported ~$1.5m) annual renewal, and mandate expanded reporting and powers for the tax authority (including freezing/diverting funds during objections). Additional digital payments taxes (5% local card withholding, 20% non‑resident card withholding, 16% VAT) and raised withholding on some dividends are included. The measures are likely to raise costs for traders and exchanges, push trading volumes and operations to friendlier jurisdictions, strain on‑ramps (cards/payment providers) and could weigh on local crypto liquidity and sentiment — a negative near‑term impact for Bitcoin trading activity in the region. GenZ protests have resumed, creating short‑term disruption to business activity.