Category: Payments
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Payment Service Providers declared VAT-exempt in Landmark Judgment
By Meshack Masibo The High Court has delivered a landmark decision reshaping VAT rules for Kenyan fintechs and digital payment platforms. In Pesapal Limited v Commissioner of Domestic Taxes, Justice Rhoda Rutto ruled that fintechs licensed under the National Payment System Act (NPSA) qualify for VAT exemptions for financial services—even…
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What Taxes Do Crypto Companies Pay in Kenya?
Discover the latest tax obligations for crypto companies in Kenya, including Corporate Income Tax, VAT, Digital Asset Tax, and Significant Economic Presence Tax. Stay compliant with the 2025 regulations.
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How to Get a Virtual Asset Service Provider (VASP) License in Kenya
Updated on 9th November 2025 Kenya has taken a significant step toward regulating the digital finance ecosystem through the Virtual Asset Service Providers Act of 2025. This landmark legislation creates a comprehensive legal framework for the licensing, regulation, and supervision of virtual asset service providers (VASPs) in the country. This…
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How to Get a Payment Service Provider (PSP) License in Kenya
Kenya’s payments industry is growing rapidly, attracting numerous fintech firms eager to tap into the expanding digital transactions market. However, operating in this space requires compliance with stringent regulations set by the Central Bank of Kenya (CBK). The CBK has increased regulatory oversight, cracking down on unlicensed fintech companies. Notably,…
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How to Register a Trust in Kenya
By Meshack Masibo Are you looking to set up a trust in Kenya? Understanding the process and legal requirements is crucial. A trust is a legal arrangement where a settlor (the person creating the trust) transfers property or assets to a trustee, who manages them for the benefit of beneficiaries.…
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How do Payment Companies keep your money safe?
By Meshack Masibo and Joy Kawira When you send money to someone through Mpesa or book a movie ticket through Pesapal have you ever wondered how that money moves and where it is stored? Well behind every secure transaction is a Trust Account. A Trust Account is a legal arrangement…
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What are the Different Types of Payment Service Providers (PSPs) in Kenya?
By Meshack Masibo The Payments Industry in Kenya has been steadily growing for the past decade or so as different companies battle to offer Kenyans unique payment channels and methods. However, one of the biggest hurdles to setting up a payments business is acquiring a license to operate. At the…
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What are the Duties of a Payment Service Provider (PSP) in Kenya?
By Meshack Masibo and Joy Kawira The payments and remittances industry is bustling the world over with estimates showing that Kenyans in the diaspora sent home a whooping 210 billion shillings in the past 4 months alone. Additionally, the rise of e-commerce which is projected to grow to 4.2 billion US dollars in revenue alongside ride-hailing platforms and cryptocurrency exchanges has…
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What is a Money Remittance Operator in Kenya?
By Joy Kawira and Meshack Masibo When was the last time you sent someone money? Today? Yesterday? A few seconds ago? Most likely you did not give a second thought as to how the process works. Whether it was an Mpesa transfer , or you were sending some money for your business from the US to…
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What is a Payment Service Provider (PSP) in Kenya?
By Meshack Masibo As we closed the year in 2023, the Central Bank of Kenya (CBK) issued a cautionary notice warning fintech companies from offering payment services without first acquiring a licence. This is not the first time that the Central Bank of Kenya has gone after fintechs, in July 2022, the Bank…
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