PwC Joins Forces with Kenyan Crypto Firms in Tax Lobbying Efforts
Coalition of Cryptocurrency Companies Forms to Address Tax Concerns
In a significant move for the Kenyan cryptocurrency sector, a coalition of leading crypto companies has taken a formal stand in Parliament to address the taxation of digital assets. This initiative is supported by PwC Kenya, a prominent consulting firm that provides advisory services, marking a pivotal moment in the ongoing discourse surrounding the regulation and treatment of cryptocurrencies in the country.
Proposal Submitted to Parliament
On May 29, 2025, a delegation comprising key firms such as Busha, Kotani Pay, Luno, Swypt, HoneyCoin, and DurraFx presented a proposal to the Finance Committee of the National Assembly. Their primary aim is to advocate for substantial changes concerning the taxation framework that currently governs digital asset transactions. As outlined in their submission, the coalition seeks to achieve the following objectives:
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Repeal the Current Tax Provisions: The group is pushing for the repeal of Section 12F of the Income Tax Act. This section currently enforces a flat tax of 1.5% on all digital asset transfers, which has been revised from an initial rate of 3%. The coalition argues that this levy is unjust, particularly when transfers occur without any realization of profit.
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Reclassification of Digital Assets: The proposal advocates for the reclassification of digital assets as property so that they can be taxed under existing capital gains rules, similar to the taxation standards applied to real estate and stock transactions. This change could significantly alter how crypto transactions are viewed legally and financially within Kenya.
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Recognition of Crypto Platforms as Financial Institutions: The lobbying effort also aims to have cryptocurrency platforms recognized legally as financial institutions. This recognition would potentially alleviate the risk of double taxation under Value Added Tax (VAT) and excise laws.
A Coordinated Push for Change
This latest endeavor is a continuation of previous efforts made by the coalition, but it is notably more organized and public in its approach. Recently, the Binance-backed Virtual Assets Chamber of Commerce (VACC) conducted a blockchain training session for the same parliamentary committee reviewing their tax proposal, demonstrating a commitment to educating lawmakers on the importance of the crypto sector.
Implications of Tax Reform
The coalition argues that the existing tax structure is stifling innovation within the burgeoning cryptocurrency industry in Kenya. By advocating for a more favorable tax landscape, they are seeking to align Kenya’s regulations with those of other jurisdictions that are seen as more accommodating to blockchain technology and digital asset development.
Looking Ahead
As the conversation around cryptocurrency regulation continues to evolve, the involvement of a major consulting firm like PwC underscores the significance of this lobbying effort for the future of digital assets in Kenya. The coalition remains optimistic that their coordinated approach can yield positive results in Parliament.
Meanwhile, stakeholders within the crypto community will be watching closely as these discussions unfold, as they could set a precedent for similar movements across the African continent, where regulatory frameworks for digital assets vary widely.
This news reflects broader trends in the region as the African digital economy begins to grapple with the implications of cryptocurrency and blockchain technology. As industries around the world adapt to these innovations, the outcomes of such legislative efforts will be vital for the future landscape of digital finance in Kenya and beyond.
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