Kenya’s proposed 1.5% crypto transaction tax could disrupt Africa’s digital integration. As Kenya advances a 1.5% tax on every crypto transaction, the nation risks undermining its fintech leadership, driving startups and talent abroad.
Opinion by: Chebet Kipingor, business operations manager at Busha
As Kenya pushes forward with a revised 1.5% crypto transaction tax, it risks losing more than revenue — it could forfeit its regional fintech leadership, drive startups across borders, and fracture Africa’s digital economy before it can unify. Parliament is debating implementing the Digital Asset Tax (DAT) on every cryptocurrency transaction. While the intention to broaden the tax base is valid, the policy’s current form could deliver unintended consequences for Kenya and financial inclusion efforts across the continent.
With over 450 million unbanked individuals in Africa, digital assets offer a real chance to leapfrog traditional infrastructure and extend financial services to underserved populations. This tax risks raising transaction costs and pushing users — especially young, tech-savvy Africans — off regulated platforms and into informal channels.
