Kenya Cuts Stablecoin Capital Rule 40% to $2.32M as Global Issuers Weigh Entry

Kenya’s National Treasury reduced the paid-up capital requirement for stablecoin issuers by 40% to approximately $2.32M to encourage entry into its rapidly growing crypto market.

Kenya has reduced the minimum paid-up capital required for stablecoin issuers by 40% to about $2.32 million (300 million Kenyan shillings). The revised threshold, published by the National Treasury, marks a significant shift from the nearly $3.9 million proposed in draft rules last March.

The framework also maintains strict reserve requirements. At least 30% of customer funds must be held in segregated trust accounts at Kenyan commercial banks, with the remainder invested in eligible domestic assets. Fiat-backed stablecoins must hold reserves in the same currency as their peg.

Parliament’s Committee on Delegated Legislation had pushed to relax the local investment rule, warning it could deter global issuers, but the Treasury kept the provision — a move that could increase deposits at Kenyan commercial banks if foreign firms seek local licensing.

Financial obligations differ across operators. Both stablecoin issuers and wallet providers must pay a $772 application fee, but issuers require $2.32 million in paid-up capital compared to $1.16 million for wallet providers. Issuers will pay over $15,400 for a license fee, four times the $3,860 fee charged to wallet providers.

Additionally, issuers must maintain $463,320 in liquid capital or 100% of current liabilities, whichever is higher. Wallet providers must hold $231,660 or the equivalent of all current liabilities for at least 30 consecutive days.

The regulations prohibit interest or rewards tied to how long customers hold stablecoins, effectively banning yield-like incentives such as loyalty bonuses. Issuers will instead compete on payment and settlement efficiency.