21/04/2026

Kenya’s Fintech Gateway

Kenya has long been celebrated as the birthplace of mobile money, but today its fintech
ecosystem is far more sophisticated. With clear licensing frameworks, progressive
taxation policies, and strong local advisory support, Kenya is positioning itself as
Africa’s fintech gateway for global investors.

Licensing of Fintech Companies

The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have
established transparent licensing regimes that encourage innovation while protecting
consumers:
☑️ Payment Service Providers (PSPs) must be licensed to operate mobile wallets
and payment platforms.
☑️ Digital Credit Providers (DCPs) are regulated to ensure responsible lending
practices.
☑️ Virtual Asset Service Providers (VASPs) are governed by the 2025 VASP Bill,
aligning Kenya with global standards for cryptocurrency and tokenized assets.
This clarity reduces uncertainty and makes Kenya one of the most investor-friendly
fintech markets in Africa.

Taxation (Modernized for Digital Finance)

The Kenya Revenue Authority (KRA) has modernized its approach to fintech taxation:
☑️ Corporate Income Tax at 30% for resident companies.
☑️ Value Added Tax (VAT) at 16% on digital services.
☑️ Digital Service Tax (DST) for non-resident firms earning from Kenyan users.
☑️ Excise Duty on mobile money transfers.
☑️ Digital Asset Taxation, introduced in 2025, requiring reporting through KRA’s
eTIMS system.

This modernized taxation platforms ensure that compliance is streamlined which in turn
ensures that fintech firms both local and foreign meet obligations efficiently. In order to
attract foreign investors and ensure the smooth running of such investors Kenya offers:

☑️ High financial inclusion (over 80%).
☑️ A mature regulatory environment.
☑️ Regional market access through East Africa.
☑️ Government openness to foreign capital and partnerships.

For global investors, this means not only a growing market but also a stable regulatory
and tax environment that supports long-term growth.

Introducing MNL Advocates – The Premiere Legal Firm For Payment & Fintech Services in Kenya

Navigating licensing and taxation can be complex, but local partners like MNL
Advocates LLP provide invaluable support when it comes to compliance with their
They assist with:
☑️ License applications with CBK and CMA.
☑️Tax advisory on corporate tax, VAT, DST, and digital asset rules.
☑️ Compliance management, including AML/KYC, Data Protection regulations and
cybersecurity.
☑️ Addressing investor concerns around profit repatriation and double taxation
treaties.

With MNL’s expertise, investors can focus on scaling their fintech operations while
staying compliant.

Kenya’s fintech story is no longer just about mobile money—it’s about building globally
competitive financial systems. With transparent licensing, modern taxation, and strong
local advisory support, Kenya is a gateway for foreign investors seeking to participate
in Africa’s digital financial revolution.

If you’re exploring fintech opportunities in Africa, Kenya is ready—and with partners like
MNL, your journey can be both secure and successful.