Kenya: National Treasury closes consultation on Virtual Asset Service Providers Regulations 2026 including organisational requirement

On 10 April 2026, the Cabinet Secretary for the National Treasury closes the consultation on the draft Virtual Asset Service Providers Regulations 2026. The Regulations are issued pursuant to section 49 of the Virtual Asset Service Providers Act 2025 (Act No. 20 of 2025). Regulation 39 would require the board of directors of each licensee to appoint a compliance officer with direct access to the board and sufficient authority to monitor and rectify non-compliance. Part IV would establish governance arrangements for licensees. Regulation 41 would require licensees to establish effective, transparent and adequate governance arrangements, including a board of directors meeting fit and proper criteria under the Fourth Schedule, a clearly defined and documented organisational structure, segregation of duties and internal control arrangements, and separation of virtual asset business into a distinct business unit. Regulation 42 would require the board to consist of at least three members with one-third being independent directors, and would prohibit the chairperson from serving as chief executive officer. Regulation 45 would require finance officers and internal auditors to be members of the Institute of Certified Public Accountants of Kenya. Nationwide public participation forums were held between 30 March and 10 April 2026.