The Income Tax Act describes digital assets as anything of value that is not tangible, cryptocurrencies, token codes or a number held in digital form and generated through cryptographic means and providing a digital representation of value exchanged.
Digital asset tax was introduced in the Finance Act 2023 and was set at three percent of the gross fair market value of cryptocurrency transactions. Kenya Revenue Authority had estimated the market to be transacting around ksh 2.4 trillion.
Recently, a Virtual Assets Service Providers Bill of 2025 was tabled in the parliament, this was to compel virtual currency exchanges and wallet providers to disclose the owner of cryptocurrencies in a move to rein in tax cheats, criminals and hackers.