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Homepage > News > Finance > Kenya: VACC slams 3% tax, excessive compliance costs A Kenyan digital asset sector think tank has slammed the country’s high taxation and excessive compliance costs in its policy recommendations to the government. The Virtual Assets Chamber of Commerce (VACC) voiced its proposals in response to the recently proposed Virtual Asset and Virtual Asset Service Providers Bill 2025, presented by the country’s Treasury last month. The bill is the first comprehensive framework to police the burgeoning sector, with proposals including a licensing regime, taxation policies and investor protection measures. The Virtual Asset Chamber proudly represented blockchain & virtual asset stakeholders at the final public participation for the 2025 VASP Bill & National Policy Framework. A pivotal moment that could set a precedent for the whole of Africa 🚀 We ensured key industry stakeholder… pic.twitter.com/KIwzmG4MpR — vasp (@vaspchamber) January 29, 2025 Like many other stakeholders, VACC voiced its support for robust regulations for the sector, noting that this would provide “much-needed clarity for businesses and investors, ensuring Kenya remains competitive in the global digital economy.” However, it condemned the proposed 3% digital asset tax, which it says exceeds the global standards. It added that Indonesia is the only other country with a similar tax, and even then, it’s capped at 0.1%-0.2%. “The industry can’t survive a tax that is ten to thirty times higher than standard exchange trading fees and far exceeds our customers’ profit margins,” warned Allan Kakai, the VACC director. “This tax threatens to make the industry fundamentally unviable, leaving regulators with nothing to regulate or tax. An immediate resolution is critical.” The proposed high tax is typical of the Kenyan government’s approach over the past three years. Since the ruling Kenya Kwanza administration took office, it has ramped up taxes in every sector…

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Filed under: News - @ February 5, 2025 4:22 pm