Kenya proposes new taxes on digital payments and fintech services

Kenya’s Finance Bill 2026 proposes expanded tax reporting and compliance requirements for virtual asset service providers and digital payment platforms. According to the proposal, the measures are intended to strengthen oversight of digital financial activity and broaden the country’s tax base.

The bill would require virtual asset service providers to submit annual transaction and user activity reports to the Kenya Revenue Authority. The framework also includes provisions enabling information sharing with foreign tax authorities.

Additional measures would affect the broader digital payments sector, including taxation changes related to card transactions and selected fintech services. Analysts cited by KPMG Kenya said the reforms could increase compliance obligations for cryptocurrency firms and digital payment providers.

The proposal also expands enforcement powers available to the Kenya Revenue Authority during tax disputes. It also shortens filing deadlines and broadens disclosure obligations for businesses. The measures form part of broader efforts to modernise tax administration and improve revenue collection.

Why does it matter? 

The proposed reforms signal a broader shift in how governments are adapting tax systems to the rapid expansion of digital finance and crypto markets. By formalising reporting obligations and increasing transaction-based taxation, Kenya is moving towards tighter integration of virtual asset activity within traditional fiscal frameworks.

At the same time, stronger enforcement powers and cross-border data sharing reflect a global trend towards greater regulatory coordination in digital assets. While this may improve transparency and revenue collection, it could also raise compliance costs and reshape how crypto platforms and fintech companies operate in emerging markets.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!