Kenya Bans Stablecoin Interest, Orders Operators to Get Licensed by November 4

According to Kenya's Virtual Asset Service Providers Regulations gazetted on July 27, the Central Bank of Kenya and Capital Markets Authority have prohibited stablecoin issuers from paying interest and required all operators to obtain licenses by November 4, 2026. The 116-page rulebook, published as Legal Notice No. 134, also sets capital requirements: stablecoin issuers must hold KSh300 million (approximately $2.3 million) in paid-up capital. Operating without a license carries fines up to KSh25 million (approximately $194,000) and potential imprisonment.

The regulations establish separate supervision: the CBK oversees stablecoin issuers and virtual-asset-to-fiat conversion services, while the CMA regulates exchanges and token issuance platforms. The framework applies to firms targeting Kenyan consumers regardless of physical location. Kenya recorded approximately $19 billion in crypto inflows between July 2024 and June 2025, making it among Sub-Saharan Africa's largest crypto markets.