Kenyan Crypto Startups Consider Offshore Shift as New Capital Rules Raise Cost
- Kenyan cryptocurrency startups are considering moving operations to Mauritius and South Africa due to new licensing requirements.
- The Virtual Asset Service Providers Regulations, 2026, impose minimum capital requirements for virtual asset exchanges and wallet providers.
- Minimum paid-up capital for exchanges is set at Sh100 million, while wallet providers face Sh150 million requirements.
The introduction of high capital requirements in Kenya's cryptocurrency regulations may stifle innovation and growth within the local market, pushing startups to seek more favorable conditions abroad. This could undermine Kenya's position as a leader in fintech in Africa and limit opportunities for local entrepreneurs.
