Kenya’s National Treasury has slashed the minimum paid-up capital for stablecoin issuers by 40 percent, bringing the figure down to $2.32 million. This move aims to lower the barriers for new players as Kenya’s crypto ecosystem expands rapidly.
The change marks a notable departure from last year’s draft rules, which set the threshold close to $3.9 million. Despite the reduction, regulatory vigilance remains strong. The Central Bank of Kenya will continue to enforce solid reserve requirements and oversight to ensure investor safety.
Strong Oversight Amid Easing Capital Rules
Under the updated framework, stablecoin issuers must hold 100 percent backing of issued tokens, backed by reserves either held in Kenyan commercial banks or invested in eligible domestic assets. At least 30 percent of client funds need to be kept in segregated trust accounts locally. The central bank also has broad powers to restrict offshore stablecoins by requiring local platforms to halt their circulation.
Kenya ranked fifth globally in crypto adoption last year according to Bybit’s 2025 World Crypto Ranking, with stablecoins playing a key role in cross-border payments and as a hedge against currency fluctuations. The country’s market handled tens of billions in 2024, underscoring growing demand. Most wallet providers and issuers face different financial requirements, with wallet operators needing around half the capital of issuers. Application fees hover around $770 for both.
The Kenyan Parliament had considered easing certain local investment demands to attract international stablecoin issuers but eventually maintained strict provisions. This could result in increased deposits held at local banks if foreign projects pursue local licenses.
This content is for informational purposes and does not serve as financial advice.
