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The Kenya Revenue Authority (KRA) proposes real-time crypto tax monitoring

Author: Content Editor
The Kenya Revenue Authority (KRA) plans to integrate a real-time tax collection system into cryptocurrency exchanges in order to increase the country's tax base. The KRA aims to tap into the growing crypto sector, which reported transactions worth about $18.6 billion in 2022. The new system will monitor and track transaction details such as type, date, value, and time. Exchanges like Coinbase and Binance currently operate in Kenya despite a lack of clear regulations. The KRA introduced digital service tax and VAT in 2021, and a shift in the law in 2023 brought crypto investors under the tax regime. Exchanges are required to remit 3% of transactions to the government through the KRA's system. The KRA has enforcement measures in place for non-compliance, including penalties and interest on unremitted taxes. Additionally, the KRA may partner with other government agencies and countries for assistance in enforcing tax collection. The 2024 Finance Bill does not include any provisions regarding digital asset tax.

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