KRA receives KSh10 billion from crypto traders in Kenya and targets KSh60 billion in new rules

Kenya Revenue Authority (KRA) plans to include cryptocurrency traders in Kenya in the country’s tax category
KRA Chairman Anthony Mwaura said during the annual taxpayers’ day that the sector contributed KSh10 billion to tax revenue for the year ending June 2024.
Mwaura said if proper regulations are put in place, the sector is likely to contribute KSh60 billion to the government in the current financial year.

TUKO.co.ke journalist Wycliffe Musalia has more than five years of experience in financial, businessand technology reports, and offers deep insight into Kenyan and global economic trends.

The Kenya Revenue Authority (KRA) plans to start taxing cryptocurrency traders.

The KRA said that players in the cryptocurrency sector are willing to pay the tax. — Kenya Revenue Authority Commissioner General Humphrey Wattanga speaks at a past event. Photo: KRA.
Source: Twitter

KRA reported that it received KSh10 billion from the sector for the financial year ending June 30, 2024.

How many crypto traders paid KRA tax in 2024?

KRA Chairman Anthony Mwaura confirmed that the agency received 10 billion Kenyan shillings from 384 crypto traders.

Speech at the annual Taxpayer Day at the State Residence Nairobi On Friday, November 1, Mwaura said if proper regulations are put in place, authorities will collect KSh60 billion from the sector in 2024/25.

“They were able to contribute Ksh 10 billion. If we can talk and come to an agreement with the Central Bank of Kenya (CBK), Bitcoin and other crypto traders within this year, we can get Ksh 60 billion from the sector.” .

“We are working to ensure that everyone can contribute to national economic growth through revenue collection, guided by the principles set out in the bottom-up economic transformation agenda,” Mwaura said.

How KRA Plans to Tax Crypto Traders

Mwaura said talks are ongoing between CBK and other stakeholders to establish a technical committee to oversee the taxation of cryptocurrencies.

He noted that crypto traders are ready to pay, adding that tax authorities will study all ways to receive them.

“We want to explore all means. Crypto traders want to pay taxes, but KRA cannot achieve them,” he said.

In October 2024 Kenya The Inland Revenue Authority (KRA) has announced plans include cryptocurrency in the tax category to increase tax revenue collection.

According to Chaina Global Cryptocurrency Adoption IndexAnalysis 2021Kenya is ranked sixth in the world in cryptocurrency adoption.

Statistics Projected revenue in the Kenyan cryptocurrency market is expected to reach $41.7 million (KSh5.2 billion) by 2024, the data showed.

What Crypto Traders Said About KRA’s Plan to Tax Them

Crypto sector players, including the Virtual Assets Chamber of Commerce and Industry in partnership with Chasing Mavericks, expressed concern about new tax rules from KRA, calling for continued engagement in tax compliance and business sustainability.