📝 Description
The Kenyan tax landscape has changed dramatically. The 3% Digital Asset Tax (DAT), introduced by the Finance Act 2023 and heavily criticized for its burden, was officially repealed by the Finance Act 2025 (effective July 1, 2025).
The Kenya Revenue Authority (KRA) now favors a more balanced approach. Taxation rests on two pillars: a tax on platform service fees and standard taxation on realized gains. This guide explains how to use Waltio to remain compliant under this new regime.
Crypto Tax Essentials in Kenya
Category | Tax Rule (2026 Regime) |
Excise Duty | 10% on transaction fees of platforms (VASPs) |
Capital Gains Tax (CGT) | 15% on net profit upon disposal |
Income Tax | Progressive scale (10% to 35%) for frequent traders |
Loss Offsetting | Allowed (Carry forward for 5 to 10 years depending on conditions) |
Filing Deadline | June 30 of the following year |
Calculation and Tax Rates: The Return of Net Profit
Unlike the old DAT system, you are no longer taxed on the gross volume of your trades, but on your actual gains.
Capital Gains Tax (CGT): For most individual investors, gains realized from selling cryptocurrencies are subject to a 15% rate on the net profit (Sale Price - Purchase Price - Fees).
Income Tax: If the KRA considers your activity as commercial (professional high-frequency trading), your profits may be reclassified as business income and taxed according to the progressive income tax scale (up to 35%).
🔄 Crypto-to-Crypto Operations
Exchanging one cryptocurrency for another remains a taxable event. You must calculate the capital gain or loss in Kenyan Shillings (KES) at the time of each transaction.
⚙️ How are they managed on Waltio?
Great news: Waltio's default behavior is now perfectly adapted to the new Kenyan regime.
The software automatically calculates your average purchase price and net gain for each trade using the FIFO or WAP method.
Your action: You can directly use the capital gains report generated by Waltio to complete your annual return. The software will isolate your 15% taxable profits and any deductible losses.
🎁 Passive Income (Staking, Mining, Airdrops)
Tokens received via staking or mining are considered income at the time of receipt. They must be declared at their fair market value in KES on the day of acquisition.
⚙️ How are they managed on Waltio?
To ensure strict compliance, a manual step is recommended:
By default, Waltio marks this income as non-taxable upon receipt (value 0).
For Kenya: You must modify these transactions to enter the market price on the day of receipt. This allows these amounts to be included in your annual taxable income and establishes a correct cost basis for future resale.
✅ The Role of Platforms (VASPs)
Since 2025, exchange platforms (Virtual Asset Service Providers) operating in Kenya have new obligations:
Excise Duty (10%): Platforms must charge 10% on the fees they bill you (not on the trade amount). For example, for 1,000 KES in fees, the platform collects 100 KES for the KRA.
Reporting: Registered platforms transmit data to the KRA. It is therefore crucial that your personal declarations match the transaction histories.
📝 Filing: The iTax Calendar
Tax Period: The calendar year (January 1 to December 31).
Deadline: You must submit your annual return via the iTax portal no later than June 30 of the following year.
Supporting Documents: Keep your Waltio reports. In the event of an audit, the KRA requires clear proof of the source of funds and profit calculations.
Disclaimer: This guide is provided for purely informational and educational purposes. Kenyan legislation evolved significantly between 2023 and 2026. Waltio does not provide tax or legal advice. We strongly recommend consulting a tax expert licensed by the KRA in Kenya to validate your obligations, especially if you use foreign exchange platforms.