KRA Bags KSh 10b from Cryptocurrency Traders in Kenya, Targets KSh 60b in New Regulations

• Kenya Revenue Authority (KRA) planned to include cryptocurrency traders in Kenya in the country’s tax bracket
• KRA chairman Anthony Mwaura revealed during the annual taxpayers’ day that the sector contributed KSh 10 billion to the tax revenue in the year ending June 2024
• Mwaura said that if proper regulations are put in place, the sector is likely to give the government KSh 60 billion in the current financial year

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Kenya Revenue Authority (KRA) has maintained plans to start taxing cryptocurrency traders.

KRA revealed that it collected KSh 10 billion from the sector in the financial year ending June 30, 2024.

How many crypto traders paid tax to KRA in 2024?

KRA chairman Anthony Mwaura confirmed that the authority netted KSh 10 billion from 384 crypto traders.

Speaking during the annual taxpayers’ day held at State House Nairobi on Friday, November 1, Mwaura said if proper regulations are put in place, the authority will collect KSh 60 billion from the sector in 2024/25.

“They were able to contribute KSh 10 billion. If we can be able to talk and agree with the Central Bank of Kenya (CBK), Bitcoin and other crypto traders within this year, we will be able to net KSh 60 billion from the sector.

“We are working to ensure that everyone can contribute to the national economic growth through revenue collection, guided by the principles outlined in the bottom-up economic transformation agenda,” said Mwaura.

How KRA plans to tax crypto traders

Mwaura said talks are underway between CBK and other stakeholders to develop a technical committee to oversee cryptocurrency taxation.

He noted that crypto traders are willing to pay, adding that the taxman will explore all means to net them.

“We want to explore all the means. Crypto traders want to pay taxes, but KRA is unable to reach them,” he said.

In October 2024, Kenya Revenue Authority (KRA) announced plans to include cryptocurrency into the tax bracket to enhance tax revenue collection.

According to the Chainalysis 2021 Global Crypto Adoption Index, Kenya ranked sixth globally in cryptocurrency adoption.

Statista data showed that projected revenue in the Kenyan cryptocurrency market is expected to reach $41.7 million (KSh 5.2 billion) by 2024.

What crypto traders said about KRA’s plan to tax them

Crypto sector players, including the Virtual Asset Chamber of Commerce in partnership with Chasing Mavericks, raised concerns over new tax regulations from KRA, calling for further engagement to ensure tax compliance and business sustainability.

The authority proposed tax regulations that will see crypto traders in Kenya pay a 3% tax on digital asset transactions.

Policy and Regulatory Engagement Lead at the Virtual Asset Chamber of Commerce S.A. Kakai stressed the importance of ensuring that businesses continue to thrive despite the tax obligations imposed on them.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

Source: TUKO.co.ke