Kenya Eyes $465 Million in Crypto Tax Revenue with Ambitious 5-Year Plan

During Kenya's Taxpayers' Day on November 1, the government announced it had collected $77.5 million in cryptocurrency taxes over the past year.

The Kenya Revenue Authority (KRA) secured KES 10 billion from 384 crypto traders in the 2023-2024 fiscal period. KRA Chairman Anthony Mwaura highlighted this as the country’s first-ever contribution to national tax revenue from crypto activities.

Mwaura shared that the KRA is setting ambitious targets, aiming to raise $465 million from the crypto sector within the next five years, contributing to a projected total of $15.88 billion in tax revenue. He emphasized the importance of cooperation between the KRA, the central bank, and key stakeholders in the crypto space to effectively tax cryptocurrency transactions.

While many crypto participants are willing to pay taxes, Mwaura noted that the current lack of mechanisms to reach them is a challenge. However, he is optimistic that the KRA can meet its goals by engaging with the sector.

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The KRA is also pushing for support from local digital asset traders to meet its targets. The tax authority has requested $83 million in funding to resolve outstanding VAT refunds. In a move to streamline the process, the KRA has introduced a real-time tax system that integrates with crypto exchanges, enabling regulators to track transactions and ensure tax compliance.

According to estimates, Kenya’s crypto market accounted for nearly 20% of the nation’s GDP in the 2021-2022 period, with transactions totaling $18.5 billion.

Kosta Gushterov