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As Kenya’s digital economy rapidly evolves, the government is continuously updating its tax policies in a bid to expand the net while ensuring there are no loopholes resulting from rapidly changing business models.

A notable change introduced through the Finance Act 2025 is the imposition of a 10 percent excise duty on fees charged by virtual asset service providers (Vasps) on transactions. This measure aims to expand the tax base and integrate digital assets into the formal tax system.

Introduction of excise duty on fees charged by Vasps comes two years after the Finance Act 2023 introduced Digital Asset Tax at a rate of three percent on transaction value of digital asset exchanges.

The Digital Asset Tax imposed significant costs on digital asset traders, such as those dealing in cryptocurrencies, as it was seen as a tax on capital rather than a tax on the income of Vasps.

This was onerous and negatively affected operations of Vasps. The Digital Asset Tax was subsequently repealed by the Finance Act 2025 in favour of excise duty applied to the fees charged by Vasps on virtual asset transactions.

The shift to excise duty is seen as a step towards fostering innovation within the digital economy while still broadening the government’s revenue base.

Notably, this amendment is expected to reduce the cost of doing business for Vasps compared to the previous regime. Despite the intended positive impact of the changes to the taxation of virtual assets, implementation of the new excise tax may present several legal and operational challenges.

One of the potential challenges is the lack of clear legal definitions within the Excise Duty Act. The Act does not define the term “virtual assets.” Nor does it define what qualifies as a virtual asset.

The term “virtual assets” may cover a broad spectrum of digital instruments, such as cryptocurrencies, tokens, non-fungible tokens (NFTs), and digital vouchers.

The lack of clarity creates uncertainty as to which assets fall within the scope of excise duty, thereby increasing the risk of inconsistent application, interpretational disputes, and potential double taxation.

Conversely, when Digital Asset Tax was introduced, the Income Tax Act was amended to include a definition of “digital asset,” which provided a degree of certainty in implementation. The current lack of definition under the Excise Duty Act presents an undesirable uncertainty for both taxpayers and administrators.

Additionally, the term “Virtual Asset Service Provider” is also not defined within the Excise Duty Act. The absence of a clear definition creates ambiguity regarding which entities and individuals fall within the scope of excise duty.

To ensure effective implementation and enforcement of the law, it is essential that the legislation explicitly defines “Virtual Asset Service Provider.”

This definition should clearly outline the types of businesses, platforms, or individuals that fall within its ambit, such as cryptocurrency exchanges, wallet providers, and other intermediaries involved in the transfer safekeeping, or administration of virtual assets.

By providing a precise definition, the KRA will be better equipped to identify the intended taxpayers, minimise the risk of non-compliance and efficiently collect the relevant taxes from those operating within the virtual asset ecosystem.

The lack of clear definitions may result in tax disputes, and while Kenyan courts have previously held that the absence of a statutory definition does not always result in ambiguity, the technical and evolving nature of virtual assets makes clarity and precision in tax legislation essential to avoid tax disputes and ensure enforceability.

International best practice highlights the importance of establishing a comprehensive legal framework prior to imposing tax obligations on virtual assets.

Jurisdictions such as the European Union, Singapore, and the United States have all enacted detailed legislation to define and regulate virtual assets before introducing relevant tax measures. This approach provides legal certainty, facilitates compliance, and supports effective enforcement.

For Kenya to effectively implement excise duty on virtual asset transactions, the Excise Duty Act should be amended to include clear and comprehensive definitions of “virtual assets” and “Vasps.”

The KRA, in collaboration with other regulatory bodies, should also issue detailed guidance to clarify the application of excise duty to virtual asset transactions, supported by practical examples and compliance protocols. Ongoing engagement with industry stakeholders will be vital to ensure that the tax regime is workable, enforceable, and does not impede innovation.

While the shift from the Digital Asset Tax to an excise duty on fees charged by Vasps is aimed at a more balanced approach for business and the government, the lack of clear legal definitions for virtual assets and Vasps in the Excise Duty Act may create major challenges.

Until these issues are resolved, applying excise duty to virtual asset transactions will remain uncertain. A clear and coordinated approach is needed to give certainty to businesses, regulators, and the economy and an advocate of the High Court of Kenya.

The drama surrounding new duty-free rice import has entered a new phase. In a surprising twist, two Mombasa-based commodity trading moguls have quietly withdrawn a case they had filed to block the government’s plan to import 500,000 tonnes of rice.

Change of strategy? Or have the protagonists simply decided to throw in the towel?

Nairobi, Kenya: Kenya’s residential property market is entering a new phase as homeowners and investors pivot from crowded apartment blocks to secure, low-density townhouse communities. The modern buyer now seeks privacy, green space, and lasting value a shift that has propelled Langata, and particularly the Langata Link Road corridor, into one of Nairobi’s most attractive emerging residential and investment frontiers.

At the heart of this transformation stands Marigold II, a newly launched development comprised of duplex and triplex townhouses that capture both lifestyle aspiration and solid investment fundamentals.

Market Data Underscores the Shift

According to HassConsult’s Q2 2025 Property Index, detached homes were the top-performing asset class, posting 3.75 percent quarterly price growth and 7.8 percent year-on-year appreciation. Knight Frank’s H1 2025 Market Update reports sustained demand for low-rise gated housing, while Cytonn Investments’ 2025 Outlook highlights townhouse developments as a key growth driver tied to Nairobi’s expanding middle class.

The takeaway is clear: gated estates in emerging suburbs are delivering stronger yields, lower vacancy rates, and steadier capital growth than vertical apartments in oversupplied zones.

Langata’s Competitive Edge

For decades, investment attention revolved around Runda, Muthaiga, and Karen neighbourhoods that remain aspirational but command steep entry prices. Langata now offers proximity to the same schools including Brookhouse, Hillcrest, and The Banda School and hospitals such as The Karen Hospital and Nairobi Hospital Langata Branch, but at more competitive buy-in levels.

Retail and leisure options, including Galleria Mall and The Hub Karen are minutes away, while infrastructure upgrades notably the Southern Bypass and Magadi Road dualing have dramatically improved accessibility. For professionals commuting to Upper Hill, the CBD, or Karen, Langata offers unmatched convenience without congestion.

Crucially, Langata Link Road remains one of Nairobi’s last low-density residential pockets. The absence of high-rise buildings preserves a quiet, green environment a major differentiator as other inner-city suburbs densify.

Security and Controlled Development

Langata’s appeal extends beyond location. The area is strengthened by community policing initiatives, robust private security patrols, and strict zoning regulations that protect it from overcrowding. These measures help safeguard long-term property value a critical factor for both institutional and individual investors seeking stable, predictable returns.

Marigold II: Designed for Families and Investors

Located along Langata Link Road, Marigold II offers a carefully planned mix of duplex and triplex townhouses, combining generous space with modern design. The homes feature landscaped courtyards, energy-efficient finishes, and adaptable layouts suited for both investors and end-users.

The development merges privacy and community through gated access and shared green zones, creating an environment ideal for families. Comparable low-density estates in Nairobi report rental yields averaging 8 percent, surpassing most high-rise returns. With limited new supply in Langata due to zoning restrictions, Marigold II is expected to maintain strong capital appreciation over the coming years.

‘Langata represents the next chapter of Nairobi’s residential growth accessible, connected, and community-driven,’ said Kelvin Mutuma, Purple Dot head of Sales. ‘Marigold II captures that spirit through thoughtfully designed duplexes and triplexes that balance lifestyle and long-term investment value.’

The Open Day Event

Marigold II’s open day will take place on Saturday, October 11, 2025, a full-day show-house exhibition open to walk-in visitors. Investors, homeowners, and prospective buyers will enjoy an immersive viewing experience.

The event will showcase not only the architecture but also the lifestyle Marigold II represents secure, family-centred, and future-ready.

About Marigold II

By Purple Dot International, Marigold II is a collection of modern duplex and triplex townhouses located along Langata Link Road, designed for homeowners who value space, security, and long-term appreciation. The project reflects the evolution of Nairobi’s housing market where good living meets sound investment.

In a city where property remains the most reliable store of value, Marigold II and Langata together demonstrate that Nairobi’s future lies not in height, but in harmony.

The government has set a March 31, 2026 deadline for the listing of Kenya Pipeline Company (KPC) shares on the Nairobi Securities Exchange, a decision that sets a six-month window to complete the firm’s privatisation process.

This marks another delay; President William Ruto had previously stated that the company’s initial public offering (IPO) would be done by September 2025.

A growing number of giant construction firms, which won big-ticket jobs under the late president Moi’s reign, have run into financial headwinds after losing ground in a transformed infrastructure landscape dominated by Chinese players.

Crescent Construction Company is the latest in a string of cash-strapped legacy contractors to face auction, having missed out on the building boom that began under the Look-East policy introduced during the late President Kibaki’s tenure.

The new public procurement framework has granted the taxman a view of all payments, cornering rogue suppliers who have been dodging taxes after earning from the government.

Starting July 2025, the electronic government procurement (e-GP) integrated public procurement details with the Kenya Revenue Authority’s (KRA) iTax system, allowing individuals and companies to update tax details, file returns and register payments.

What you need to know:

International payments platform LemFi allows over 2 million immigrants to easily send money across the globe

LemFi uses AI within its robust credit service to enable ‘send now, pay later’ remittance, so people can ensure their families are supported when they need it most

New product will help streamline nearly £10 billion worth of payments

LemFi, the leading AI-powered international payments platform dedicated to building financial products and services for immigrant communities, today announced the launch of Send Now, Pay Later (SNPL), a credit-powered remittance product that allows its UK customers to use their LemFi credit line to send money home to their families when they need it most.

For the millions of immigrants in the UK whosend nearly £10 billion back home annually, there is often a timing mismatch between unexpected expenses and local earning cycles.

This can force them to delay pivotal transfers home or turn to unregulated, expensive credit solutions. Since traditional remittance providers typically require immediate payment, Send Now, Pay Later aims to address this critical pain point and provide vital service to customers who are new to the country and have a limited UK credit history. Powering SNPL is LemFi’s Ensemble AI model, which combines multiple data sources to inform credit decisions, including national credit bureaus, open banking data, and the company’s own remittance data, to help determine credit limits and repayment structures.

This intelligent system also automatically adjusts depending on the individual customer’s journey and available data points, determining the required data points based on the customer’s circumstances and then offering risk-adjusted credit based on the available data.

Ridwan Olalere, co-founder and CEO of LemFi, said: ‘The rise of Buy Now, Pay Later means people across the world can buy products and stagger the payments depending on their cash flow. But this has never been possible before with remittance, despite it being such a core part of the immigrant financial experience. With Send Now, Pay Later, we’re integrating credit directly into the remittance experience, ensuring financial support is never delayed by cash flow timing. It’s also a testament to our commitment to building a full-stack, AI-enabled financial ecosystem that understands and serves the unique challenges faced by global citizens.’ How Send Now, Pay Later Works

To access SNPL, LemFi customers are onboarded to LemFi Credit, which gives users access to credit lines ranging from £300 to £1,000, depending on their credit profile and assessment, which is enabled by leveraging open banking technology to evaluate eligibility.

This makes it accessible even to recent immigrants who often lack extensive UK credit histories and are excluded from traditional finance services. In addition, LemFi’s platform can recognise international credit histories and employs alternative credit assessment methods that look beyond traditional UK financial records.

This allows users to start with smaller credit limits and build their UK credit profile over time while accessing essential financial services.

This is done through the company’s AI-driven decisioning engine that analyses a wide spectrum of data points, including open banking insights, bureau files, remittance history and patterns within LemFi, as well as international credit footprints.

By training models across these diverse datasets, LemFi can predict affordability and repayment likelihood with greater accuracy than traditional scoring approaches while reducing bias that often excludes immigrants from mainstream credit, helping to solve the issue of ‘credit invisibility’ through the application of artificial intelligence.

Once onboarded, customers can access their credit limit to send money to any of the 30+ LemFi-supported destination countries. When choosing the SNPL option, LemFi immediately processes the transfer to the recipient while creating a deferred payment obligation for the sender.

Bridging the Credit Divide

Currently, immigrants face significant and widespread issues when it comes to trying to access credit and banking services more broadly. Approximately five million individuals in the UK are considered ‘credit invisible’, with immigrants from emerging countries disproportionately affected.

Research indicates that nine in 10 immigrants report that accessing credit has become more difficult in recent years, while 13 percent of migrants are excluded from banking services compared to just 3 percent of the general UK population. This exclusion creates a cascade of financial challenges that extend beyond simple access to credit.

LemFi’s approach to credit assessment specifically addresses these challenges. As well, SNPL will tackle friction points around timing and bank transfers. Its real-time / same-day transfers reduce the time taken by traditional banks by a third and provide a means for its users to support their community despite their cash flow.

Global Expansion and Market Opportunities

Following the UK launch, LemFi plans to expand the SNPL service to its other markets in the United States, Canada, and Europe. It currently supports over 2 million customers, enabling them to send money to over 30 countries across Asia, Africa, Europe, and Latin America.

Since its founding, LemFi has supported over 2 million customers in the United States, the United Kingdom, Canada, and Europe. In January 2025, LemFi secured $53 million in Series B funding, bringing its total funding to over $86M. Investors include Highland Europe, LeftLane Capital, Endeavor Capital, and Y-Combinator.