Kenya imposes 3% tax on crypto-asset transactions

On June 26, Kenya’s President William Ruto signed the 2023 Finance Bill, which includes a 3% tax on crypto-asset transactions. This was reported by TechCabal.

The authorities say that this will help stabilise the domestic economy and reduce dependence on foreign loans. According to Bloomberg, the president aims to double state revenues over five years to 5 trillion shillings ($36.7 billion).

Details of Kenya’s plans to introduce a tax on cryptocurrency transactions became known in May. The Kenyan Blockchain Association (BAK) has criticised the new law.

“Taxing all digital assets in the same way could stifle innovation and hinder growth in the sectors of the industry,” the organisation said.

BAK added that such taxation could be unfair due to the high volatility of crypto assets.

According to a UN report, Kenya ranks fifth worldwide in cryptocurrency adoption. It is owned by 8.5% of the country’s population.

On June 14, Business Daily Africa published the results of a report, according to which 90% of Kenyans oppose the passed law.

In May, the Swiss canton of Zug raised the minimum tax threshold on payments in Bitcoin and Ethereum to $1.67 million.