KENYA Law and Practice Contributed by: Keega Gakuua, Faith Njeri Njaggah and Alphonse Odido, Keega & Company Advocates
It bears mention however, that in March 2026, the CBK and the National Bank of Rwanda signed an MoU to develop a Licence Passporting Framework for Payment Service Providers (PSPs) between the two countries. Once implemented, a licensed payment company in Kenya (including fintechs and mobile money opera- tors) could expand into Rwanda without undergoing an entirely new licensing process, based on the mutual recognition of licences. The framework remains sub- ject to finalisation and would still require supervision by both regulators. This initiative is currently limited to PSPs under the CBK’s traditional payments remit. It does not yet extend to VASPs regulated by the CMA. However, it signals a change in regional direction towards pass- porting for financial services licences within the East African Community. Kenya imposes material restrictions on cross‑border marketing of blockchain and crypto‑asset services. Extra‑Territorial Scope – “In or From Kenya” A person is deemed to operate in or from Kenya if they derive an economic benefit or income from Kenya, irrespective of physical presence. Consequence: An offshore provider actively marketing to Kenyan con- sumers cannot assume that a lack of local establish- ment removes it from regulatory scope. Broad Definition of “Marketing” This covers online marketing, social media, white papers, brochures, seminars, telemarketing, and any promotional communication intended to promote vir- tual assets or related services. Content and fairness requirements • Prohibited: False, misleading, deceptive, or non‑compliant advertisements. • Mandatory: Marketing must be fair, clear, complete, concise, unambiguous, unbiased, and in plain language. 4. Cross-Border Services 4.1 Marketing
• Identifiers required: Licensee name, licence num- ber, registered office, and (where applicable) third‑party promoter. Specific Disclosure Obligations Any reference to fees, costs, commissions, perfor- mance, or product features must not be misleading and must fairly reflect risks and limitations. Internet advertising must not obscure warnings or reduce visibility of disclosures. Approval Requirements General VASP activity in or from Kenya requires a licence. ICO promotion requires a specific application and approval; marketing may not begin before the white paper is published. Stablecoin marketing is subject to stricter controls in that it: • must be consistent with the published white paper; • must clearly state the redemption right at par value; • must identify the issuer’s website and contact details; and • may not be disseminated before the white paper is published. Reverse Solicitation The draft Regulations do not expressly recognise reverse solicitation as a safe harbour or exemption. As the framework focuses on offering services in or from Kenya and on targeted promotions, reverse solicita- tion would at best be a factual defence in a narrow case, not a guaranteed exemption. Laws and Regulations The marketing of digital assets in Kenya is governed by a combination of general consumer protection laws and a bespoke framework under the VASP Act, 2025 and its associated draft VASP Regulations, 2026. Unlike the UK, Kenya does not have a sepa- rate advertising standards body dedicated to digital assets; instead, the proposed regulations integrate strict marketing rules directly into the financial ser-
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