Kenya Cuts Stablecoin Capital Requirement by 40% to $2.32M

According to Kenya's National Treasury, announced on July 27, the country cut the minimum paid-up capital required for stablecoin issuers by 40% to $2.32 million, down from nearly $3.9 million proposed in draft rules last March. The lower threshold aims to ease entry into Kenya's market, which Bybit ranked 5th globally in crypto adoption in 2025, with stablecoins driving cross-border payments and serving as a hedge against currency volatility.

Under the new framework, the Central Bank of Kenya will enforce strict reserve requirements: stablecoin issuers must maintain 1-to-1 reserve backing with eligible assets, and customers can redeem tokens at face value within two business days. The regulator also holds sweeping authority to curb circulation of offshore-issued tokens by compelling local platforms to stop offering them.