Kenya's Finance Bill 2026 proposes stricter regulations on cryptocurrency reporting and introduces new taxes on digital payments as part of a broader effort to enhance revenue collection. The bill mandates Virtual Asset Service Providers (VASPs) to file annual returns with the Kenya Revenue Authority, detailing reportable users and controlling persons. It also allows for the exchange of virtual asset transaction information with foreign tax authorities, enhancing cross-border transparency. The bill introduces a 5% withholding tax on local card transactions and a potential 20% tax on some non-resident card transactions, alongside a 16% VAT on certain fintech services. These measures could increase operational costs for payment processors and crypto platforms. Additionally, the bill strengthens enforcement powers, allowing funds to be frozen during tax disputes, and proposes changes to tax administration, including earlier tax return deadlines and expanded VAT invoicing obligations. These proposals align with a regional trend towards tighter crypto regulations, as seen in South Africa's draft regulations classifying crypto assets as capital. If enacted, Kenya's Finance Bill 2026 could significantly impact digital payment and crypto operations, increasing compliance costs and operational complexity for businesses in the sector.