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EBC Financial Group notes that Kenya’s new virtual asset regulations created a restriction on local access to foreign dollar-linked stablecoins before the shilling came under pressure, giving the Central Bank of Kenya a way to limit that access if demand for US dollar-linked assets rises later.
EBC Financial Group (EBC) highlights that Kenya gave the Central Bank of Kenya (CBK) power to restrict local access to foreign dollar-linked stablecoins while the shilling was stable and foreign currency reserves were strong, with no immediate currency pressure requiring such a control. The move puts the restriction in place ahead of a possible rise in demand for US dollar-linked assets, particularly as inflation increases and stablecoins provide households and businesses with another route to dollar exposure.
Kenya completed the Virtual Asset Service Providers Regulations, 2026 on 22 July under Legal Notice No. 134. Regulation 60(6) prevents a licensed exchange from listing a stablecoin unless it has CBK approval and is issued by a licensed stablecoin issuer. Regulation 83 allows the CBK to direct licensed firms in Kenya to restrict access to or trading in a stablecoin issued outside Kenya. Stablecoins are digital assets designed to maintain their value against assets such as the US dollar.
