Kenya’s Capital Markets Bill Defining Crypto Assets as Securities Progresses in Parliament
The Capital Markets (Amendment) Bill, 2023, has received approval from the National Assembly’s Finance and National Planning Committee in Kenya.
On December 4, a Kenyan local news outlet, Business Daily, reported that the bill defining crypto assets as securities and including the capital gains tax on them had passed the Parliamentary Committee. The next step is for the bill to be introduced to the lower chamber of Parliament. If approved by the House, it will proceed to the President for assent.
The parliamentary committee, chaired by Molo MP Kimani Kuria, has approved the proposal to amend the Capital Markets Act, Cap 485, to include digital currencies in the definition of securities. The amendment aims to regulate the trading of cryptocurrencies and guard against the proceeds of crime and terrorism financing. Once enacted, the law will provide a framework for governing the trading of cryptocurrencies in Kenya.
According to the report, Mr. Kimani said during the pre-publication scrutiny of the legislative proposal,
“This is a very critical law that will guard our country against the proceeds of crime and terrorism financing. Cryptocurrencies are already being traded by millions of Kenyans, yet we have no law to govern it. We approve this Bill for publication.”
The Capital Markets (Amendment) Bill, 2023, sponsored by Mosop MP Abraham Kirwa, is set to introduce significant changes in Kenya’s approach to cryptocurrency transactions. If approved, the Bill will usher in taxation measures for crypto exchanges and digital wallets, imposing transaction taxes similar to the excise duty charged on traditional bank transactions.
According to Business Daily, banks in Kenya currently impose a 20 percent excise duty on all commissions
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