Kenya plans to impose a 3% tax on all transfers of digital assets and non-fungible tokens (NFTs) under the proposed 2023 Finance Bill to increase revenue. The bill defines digital assets as “anything of value that is not tangible and cryptocurrencies, token code, numbers held in digital form and generated through cryptographic means or otherwise.”
Kenya has emerged as one of the global leaders in digital asset adoption, with 4.25 million Kenyans owning digital assets. However, some believe that the tax is exploitative and may not apply to everyone, leading to targeted harassment. In November 2022, lawmakers had proposed the Capital Markets (Amendment) Bill 2022, which imposed taxes on digital asset exchanges, wallets, and traders.
