Kenya’s Crypto Tax: Threat or Opportunity? A Look at Potential Impacts

Chebet Kipingor, business operations manager at Busha, explores Kenya’s revised 1.5% crypto transaction tax and its potential consequences for the country’s digital growth. The article argues that while revenue generation is a valid objective, the current policy design could hinder innovation, drive startups away from the region, and fracture Africa’s nascent digital economy. The author highlights the impact of high taxes on users, particularly tech-savvy young Kenyans who rely on crypto for daily payments. A potential ripple effect is seen as both local startups are migrating to neighboring countries with more favorable policies, and international exchanges reconsidering their expansion plans due to regulatory uncertainty.