Kenya Collected $77.5M in Crypto Taxes — $465M Target Next, Exchanges in Focus

At Kenya’s Taxpayers’ Day celebration on November 1, the government revealed that the country collected $77.5 million in crypto tax over the last year. The Kenya Revenue Authority (KRA) obtained KES 10 billion from 384 crypto traders in the fiscal year 2023-2024.

KRA Chairman Anthony Mwaura highlighted the Kenyan crypto market’s first-ever contribution to national tax revenue. At a gathering at State House, Nairobi, Mwaura said the KRA plans to collect $465 million in taxes from the crypto sector alone. Over the next five years, the authority aims to accumulate $15.88 billion in tax revenue, with the crypto sector expected to be a key contributor.

Mwaura emphasized the need for collaboration to find ways to effectively tax cryptocurrency activities. He explained that many individuals involved in cryptocurrencies are willing to pay taxes, but the KRA currently lacks the means to reach them. Mwaura expressed optimism that by working with the central bank and engaging with those in the Bitcoin and broader crypto space, the KRA could collect as much as KES 60 billion (approximately $465 million).

Read also: Kenya Shuts Down Worldcoin’s Activities Over Privacy Concerns

With Kenya’s ambitious target of $465 million in crypto tax, the KRA is seeking support from the country’s digital coin traders. The KRA also wants to transform itself into a more business-friendly institution over this five-year period. The agency has requested a nearly $83 million allocation to clear the pending Value Added Tax (VAT) refunds.

To achieve its goals, the KRA launched a new real-time tax system that integrates crypto exchanges. The new system will allow regulators to monitor these exchanges’ crypto activities and collect taxes accordingly. The agency estimates the Kenyan crypto market saw transactions worth $18.5 billion in 2021-2022, accounting for nearly 20% of the country’s GDP.