Kenya Treasury Introduces Crypto Licence Holding and Operational Deadlines

Kenya’s Treasury Cabinet Secretary John Mbadi has introduced crypto-licensing rules requiring licensed firms to operate for at least three years before they may sell or transfer their licences. The regulations also require firms that receive licences to begin operations within 12 months, a measure intended to limit speculative acquisition and trading of crypto licences.

The rules apply to firms seeking or holding licences to conduct crypto-related business in Kenya. Under the reported framework, a licence cannot be transferred or sold during the first three years of the licensee’s operations, restricting early changes in ownership or control of licensed entities.

The 12-month operational requirement establishes a deadline for newly licensed firms to commence their licensed activities. Firms that obtain authorisation but do not begin operating within that period could face regulatory consequences under the licensing framework, although the report does not specify the enforcement mechanism or penalties.

The measures were introduced by the Treasury under CS Mbadi and are directed at preventing licence speculation, where entities might obtain licences primarily to resell or transfer them rather than provide crypto services. The article does not identify a specific statute, regulator, effective date, or additional compliance requirements.

More broadly, the rules signal an effort to tie crypto licensing more closely to genuine operational activity and longer-term participation in Kenya’s digital-asset market. The report does not provide details on which categories of crypto businesses are covered, the number of affected firms, or procedures for approving licence transfers after the three-year period.