The International Monetary Fund has urged Kenya to revise parts of its crypto licensing framework. The proposals target stablecoin reserve requirements and fixed capital floors. Kenya recorded Sh740 billion (US$5.7 billion) in crypto transfers in the year to June 2026.
Capital floors under review
Kenya requires crypto exchanges to hold Sh100 million (US$770,000) in paid-up capital. Stablecoin issuers face a Sh300 million minimum capital requirement. The IMF says risk-based thresholds should reflect the scale and complexity of each business.
Stablecoin reserve proposal
The Fund wants foreign-denominated stablecoins to hold reserves in their home jurisdictions or with foreign custodians. Kenya would restrict how regulated financial institutions use these tokens. The Fund says local reserve rules could discourage global issuers from setting up Kenyan subsidiaries.
Travel Rule push
The IMF also wants Kenya to add Travel Rule obligations without delay. It says the country has a significant gap in international crypto information-sharing. Kenya is on the FATF gray list and is aiming for removal in April 2027.
No response from the Central Bank of Kenya or the Treasury has been reported. The Treasury issued the regulations, so any change would come through it. The Fund also says public awareness of local licensing protections could push users toward domestic issuers.