According to a report that was distributed by a local media outlet on Monday, 21 November, an amendment to the Capital Markets Law has been proposed in the National Assembly, and the adoption of this amendment could result in the Kenya Revenue Authority (KRA) beginning to tax users of cryptocurrencies. This information was obtained from an article that was published in the National Assembly.

Kenya is considering taxing cryptocurrencies.
Any individual who engages in transactions utilizing digital currencies should be subject to taxes, with income tax and capital gains tax applying according to the provisions of the law, as suggested in the Capital Markets (Amendment) Bill 2022.

If the proposed law is approved, it is possible that taxpayers who retain digital currencies for less than a year would be subject to income tax, while taxpayers who store cryptocurrencies for more than a year will be subject to capital gains tax.

Additionally, the amendment tries to clarify digital currencies, including what goes on with their trade and how they are created through mining. Abraham Kirwa, a member of parliament for the Mosop Constituency, who is the bill's sponsor, made the following comment in a statement:

"The amendment will also explain the obligations of individuals or enterprises trading in digital currencies, allow for the taxation and ownership of digital currencies, and provide for the encouragement of innovation in this field."

More than four million Kenyans are estimated to possess, make use of, or trade cryptocurrencies, according to new statistics compiled by the United Nations. This makes Kenya one of the nations with the most rapidly expanding adoption rates of cryptocurrencies.