Kenya Revenue Authority Launches New Crypto Tax Initiative

Nickson Omondi, head of the digital economy tax division at the Kenya Revenue Authority (KRA), announced plans for a real-time tax collection system integrated with cryptocurrency exchanges.

This initiative aims to expand Kenya’s tax base, leveraging the cryptocurrency sector, which recorded approximately $18.6 billion in transactions in 2022.

Starting September 2023, a 3% tax on crypto earnings has been implemented under the Finance Act of 2023, applying to all digital assets, including NFTs. While some exchanges are complying, specifics on tax remittance are still being negotiated.

The KRA is working to establish procedures for filing and remitting these taxes, with penalties for non-compliance, including a 5% penalty and 1% monthly interest on unpaid taxes.

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Omondi stated that enforcement measures could restrict access to the Kenyan market for non-compliant exchanges and that the KRA may collaborate with international partners to enhance tax compliance.

The upcoming Finance Bill does not introduce new provisions for digital asset taxes but proposes waiving penalties on outstanding taxes.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.