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Kenya’s Capital Markets Authority has issued a tender for a blockchain analytics system capable of monitoring more than 20 networks in real time, as the regulator builds surveillance infrastructure ahead of licensing the country’s first crypto firms under a law that took effect in November.
The move signals Kenya’s determination to strengthen oversight of digital assets while balancing innovation with investor protection, making it one of Africa’s most closely watched cryptocurrency regulatory developments.
Kenya crypto regulation has rapidly evolved from policy discussions to practical enforcement after the country’s Capital Markets Authority (CMA) launched a procurement process for an advanced blockchain analytics platform capable of monitoring activity across more than 20 blockchain networks.
According to tender documents reviewed by Capital FM Africa, the regulator wants a system that can analyze blockchain transactions in real time and retrospectively as licensed crypto businesses begin operating under the country’s new legal framework.
The planned surveillance platform represents one of the most comprehensive monitoring initiatives undertaken by an African financial regulator.
Under the tender specifications, the software must support major blockchain networks, including Bitcoin and Ethereum, alongside at least 20 additional networks.
The platform will automatically flag high-risk wallets, unusually large transfers, cryptocurrency mixers, darknet-linked addresses, and wallets connected to sanctions lists maintained by the United Nations and the U.S. Office of Foreign Assets Control (OFAC).
Beyond transaction monitoring, the technology will enable investigators to map wallet relationships, reconstruct transaction histories, trace assets across multiple blockchains, and assign risk scores associated with money laundering, ransomware, fraud, and terrorism financing.
The CMA also intends to identify cryptocurrency exchanges most frequently used by Kenyan residents and detect offshore platforms offering services locally without regulatory approval.
The surveillance initiative follows the enactment of Kenya’s first comprehensive digital asset legislation.
President William Ruto signed the Virtual Assets Service Providers Act into law in October, with the legislation taking effect the following month.
The law establishes a dual regulatory structure designed to align Kenya with global anti-money laundering standards promoted by the Financial Action Task Force.
Under the framework, the Central Bank of Kenya supervises payment services, stablecoins, and custodial wallet providers, while the CMA oversees cryptocurrency exchanges, brokers, investment advisers, and tokenization platforms.
Despite the legislation already being in force, no cryptocurrency companies have yet received operating licences. The National Treasury released draft implementation regulations in March, while existing virtual asset service providers have until November 2026 to comply with the new licensing requirements.
Kenya crypto regulation is also becoming increasingly integrated with the country’s tax reporting framework.
Earlier this year, the Finance Bill 2026 proposed additional disclosure obligations for Virtual Asset Service Providers (VASPs).
Under the proposal, crypto firms would submit annual reports to the Kenya Revenue Authority identifying reportable users and controlling persons while enabling cross-border exchanges of crypto transaction information under international tax reporting standards.
According to an analysis by KPMG Kenya, the proposals are designed to improve tax transparency while supporting international cooperation against financial crime.
The latest surveillance initiative complements those broader compliance efforts by giving regulators powerful forensic tools to detect suspicious blockchain activity before licensed operators formally enter the market.
The capabilities outlined in the CMA’s procurement closely resemble commercial blockchain intelligence platforms developed by companies such as Chainalysis, TRM Labs, and Elliptic.
These firms already provide blockchain investigation software to regulators and law enforcement agencies worldwide.
“Public blockchains create permanent records of transactions that can be analyzed to identify illicit activity,” Jonathan Levin has previously said, emphasizing that blockchain transparency provides investigators with powerful compliance tools.
Similarly, Ari Redbord has repeatedly argued that blockchain intelligence enables governments to “follow the money” more efficiently than traditional financial investigations.
In the United States, agencies including the FBI, DEA, IRS, and Immigration and Customs Enforcement already use blockchain forensic software. Britain’s HM Revenue & Customs has also partnered with TRM Labs to strengthen cryptocurrency investigations.
Kenya crypto regulation carries significant implications because the country remains one of Africa’s largest digital asset markets.
According to Chainalysis, Kenyan users received approximately $19 billion in cryptocurrency between July 2024 and June 2025, ranking the country fourth across Africa.
The blockchain analytics company also estimates that more than six million Kenyans actively use digital assets, with peer-to-peer trading accounting for a substantial share of market activity.
The CMA’s decision to deploy blockchain analytics before issuing licences demonstrates a proactive regulatory strategy that prioritizes market integrity from the outset.
For investors, exchanges, and crypto businesses, Kenya crypto regulation now signals both opportunity and heightened compliance expectations.
While the new framework promises greater legal certainty for legitimate operators, it also underscores the government’s commitment to identifying illicit financial activity through cutting-edge blockchain intelligence.
As licensing approaches and enforcement capabilities expand, Kenya crypto regulation is positioning Kenya among the continent’s most sophisticated digital asset jurisdictions, potentially setting a benchmark for other African nations seeking to regulate cryptocurrencies without stifling innovation.
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