Kenya Lowers Minimum Capital Requirement for Stablecoin Issuers to $2.32 Million

The Kenyan National Treasury has reduced the minimum paid-up capital requirement for stablecoin issuers by 40%, bringing it down to approximately $2.32 million, below last March's threshold of nearly $3.9 million. Under the new regulations, the Central Bank of Kenya will oversee stablecoin issuers and other virtual asset service providers, and may require local platforms to cease offering offshore-issued tokens. The framework mandates that at least 30% of customer funds be held in independent trust accounts at Kenyan commercial banks, with the remaining funds invested in qualifying local assets. The fiat-backed stablecoin reserves must align with the pegged currency. Issuers are required to maintain either $463,300 in liquid capital or 100% of their liquid liabilities, whichever is higher, and hold qualifying reserve assets at a 1:1 ratio. Additionally, issuers must conduct quarterly stress tests, submit monthly reserve and transaction reports, and ensure that customers can redeem tokens at face value within two business days.