Kenya has introduced sweeping reforms to its cryptocurrency tax regime, marking a major step toward aligning the nation’s digital finance landscape with international best practices.
Under the Finance Act 2025, the government has repealed the 3% Digital Asset Tax (DAT), previously imposed on the total value of cryptocurrency transactions, and replaced it with an excise duty on platform fees and commissions charged by licensed digital asset operators.
The shift means that crypto exchanges and brokers will now be taxed based on the service fees they charge users, not on the entire value of their trades.
For individuals and firms, income tax or capital gains tax will continue to apply, depending on how their digital assets are used or held
“The repeal of the Digital Asset Tax and the introduction of excise duty on service fees is a more practical and fair approach, it recognises how our business models actually work,” said Philip Chege, Chief Marketing Officer at GoChapaa, a Kenyan digital finance startup.
