Kenya cuts stablecoin capital requirement to $2.32M
Kenya’s National Treasury cut minimum paid-up capital for stablecoin issuers by 40% to about $2.32 million. The central bank requires one-to-one reserve backing and two-day redemptions.
The National Treasury published revised rules that reduce the minimum paid-up capital for stablecoin issuers by 40% to about $2.32 million (300 million Kenyan shillings). The rules require every fiat-linked stablecoin to be fully backed one-to-one by eligible reserve assets and set a two-business-day limit for redemptions.
The new threshold lowers the requirement from nearly $3.9 million proposed in draft rules last March. Kenya ranked fifth globally in crypto adoption in 2025 rankings, with stablecoins used for cross-border payments and as a hedge against local currency volatility. The market processed tens of billions of dollars in 2024.
The Central Bank of Kenya will have supervisory powers over stablecoin issuers and other virtual asset service providers, including the authority to direct local platforms to stop offering offshore-issued tokens.
Reserve assets must include cash, bank deposits, short-term government securities and other instruments approved by the central bank. At least 30% of customer funds must be held in segregated trust accounts at Kenyan commercial banks, with the remainder invested in eligible domestic assets. For fiat-pegged tokens, reserves must be held in the same currency as the peg. Reserve assets must be legally separated from company funds and protected from creditor claims in the event of insolvency.
Issuers must carry out quarterly stress tests, file monthly reserve and transaction reports, and ensure customers can redeem tokens at face value within two business days.
Financial and operational obligations vary by operator. Both stablecoin issuers and wallet providers must pay a $772 application fee. Issuers must hold roughly $2.32 million in paid-up capital, while wallet providers face a $1.16 million minimum. Issuers will pay more than $15,400 for a licence, compared with $3,860 for wallet providers. Issuers are required to maintain $463,320 in liquid capital or an amount equal to 100% of current liabilities, whichever is higher. Wallet providers must hold $231,660 or the equivalent of all current liabilities for at least 30 consecutive days.
The rules prohibit interest or rewards tied to how long customers hold stablecoins, blocking yield-like incentives such as holding bonuses.
Parliament’s Committee on Delegated Legislation had pushed to relax a domestic investment requirement, but the Treasury retained it. That requirement could lead foreign firms to seek local licences and increase deposits at Kenyan commercial banks.
The regulations set financial, operational and reporting standards for crypto businesses operating in Kenya.
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