How crypto tax works in Kenya
Kenya repealed the 3% Digital Asset Tax in 2025, replacing it with 10% excise duty on fees charged by virtual-asset service providers, collected and remitted monthly.
Mining, staking, and airdrop rewards enter as business income at individual 10% to 35% or corporate 30%, with self-assessment and KRA PIN registration.
Finance Bill 2026 adds VASP information returns with penalties, VASP Act licensing runs through the Capital Markets Authority, and CARF alignment extends exchange cooperation.
Tax rates at a glance
- Investor gains
- Excise on fees
- VASP fee excise
- 10%
- Mining income
- Business rates
- Staking rewards
- Business income
- Corporate rate
- 30%
- VASP reporting
- Mandatory
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Active tradersLong-term holdersMinersFreelancers paid in cryptoExpats
Watch out for
- Excise-on-fees still prices activity: high-frequency traders pay steady provider-level tax that platforms pass through.
- Mining and staking income needs self-assessed business filing, which casual earners miss until penalties arrive.
- DEX activity sits outside collection mechanics but inside income duties, creating compliance gaps with enforcement risk.
- VASP reporting with per-statement penalties makes platform data available to KRA automatically, ending estimate-based filing.
Frequently asked questions
How is crypto taxed in Kenya?
Through 10% excise on VASP fees from 2025, with mining, staking, and business income self-assessed at 10% to 35% or 30% corporate. The 3% DAT is repealed.
Is the 3% Digital Asset Tax still in force?
No. Repealed from 2025 and replaced by 10% excise on provider fees, shifting the burden from transaction value to intermediary income.
Do Kenyan exchanges report to KRA?
Yes. VASP information returns carry per-statement penalties, with local bank accounts or tax representatives required for remittance.