Kenya: President of Kenya signed Virtual Asset Service Providers Act 2025 (Act No. 20 of 2025) including user identification requirement into law

On 15 October 2025, the President of Kenya signed the Virtual Asset Service Providers Act 2025 (Act No. 20 of 2025) into law. Under Part V of the Act, all virtual asset service providers are required to comply with the full range of anti-money laundering and countering the financing of terrorism and countering proliferation financing (AML/CFT/CPF) preventive measures, including targeted financial sanctions obligations and customer identification and due diligence requirements. The Capital Markets Authority and the Central Bank of Kenya are empowered to vet significant shareholders, beneficial owners, directors and senior officers of virtual asset service providers, conduct onsite inspections and offsite surveillance, compel the production of documents, and impose monetary, civil or administrative sanctions for AML/CFT/CPF violations. The relevant regulatory authorities are further empowered to issue regulations, guidelines, directions, rules or instructions for AML/CFT/CPF purposes and to cooperate and share information with other supervisory and investigating authorities. A person who violates AML/CFT/CPF obligations commits a criminal offence and is liable, upon conviction, to a fine not exceeding KES 10 million or imprisonment for a term not exceeding 5 years, or both, in the case of an individual, and to a fine not exceeding KES 25 million in the case of a company.