Kenya is moving to include blockchain calculations before the start of crypto licensing
Kenya has moved to buy a blockchain monitoring platform that can track transactions across more than 20 blockchain networks as the country prepares to monitor licensed crypto businesses under its new virtual assets law.
Summary
- Kenya plans to introduce blockchain monitoring software as it prepares to regulate licensed crypto businesses.
- The proposed platform will track transactions across more than 20 blockchains and flag suspicious wallets and transfers.
- The move follows Kenya’s new virtual law and proposed reporting rules for crypto service providers.
According to the tender documents reviewed by Capital FM Africa, Kenya’s Capital Markets Authority (CMA) is looking for an advanced blockchain analytics system that can monitor the activity of digital assets in real-time and in real-time.
The proposed platform will support regulatory investigations, identify suspicious transactions, and strengthen compliance monitoring as the country’s crypto licensing framework moves closer to implementation.
Under the tender specifications, the system must support Bitcoin, Ethereum, and at least 20 other blockchain networks. It will generate automatic alerts for high-risk wallets, unusually large transfers, coin mixes, addresses linked to the darknet, and entities on sanctions lists maintained by the United Nations and the US Office of Foreign Assets Control.
The regulator also wants software that can map wallet relationships, reconstruct transaction histories, track funds across multiple blockchains, and provide risk scores linked to money laundering, ransomware, fraud, and terrorist financing. In addition, the CMA plans to use the platform to identify cryptocurrency exchanges that are most commonly used by Kenyan citizens and find overseas platforms that serve local users without regulatory approval.
Monitoring tools to support new crypto rules
The procurement of surveillance comes after Kenya launched its first comprehensive digital asset framework. President William Ruto signed the Real Estate Services Act into law in October, and the law will come into force the following month.
The Act divides regulatory responsibilities between the Central Bank of Kenya and the CMA. While the central bank oversees payment services, stablecoins, and wallet providers, the CMA is responsible for regulating cryptocurrency exchanges, brokers, investment advisors, and token platforms as Kenya aligns its regulatory framework with anti-money laundering standards set by the Financial Action Task Force.
Although the legal framework is already in place, no crypto companies have received licenses so far. The National Treasury released the draft rules in March, and existing operators have until November 2026 to meet the new compliance requirements.
Earlier this year, the Kenya Finance Bill 2026 proposed additional reporting obligations for Virtual Heritage Service Providers. Under the proposal, crypto firms will submit annual reports to the Kenya Revenue Authority containing information on reported users and controlling persons, while the country will also be able to exchange virtual transaction data with foreign tax authorities under international reporting standards, according to an analysis published by KPMG Kenya.
Kenya joins global regulators using blockchain analytics
The capabilities described in the CMA tender are closely related to blockchain intelligence platforms offered by companies including Chainalysis, TRM Labs, and Elliptic, which provide transaction monitoring software to regulators and law enforcement agencies in several countries.
Kenya is still one of the largest cryptocurrency markets in Africa. According to Chainalysis, users in the country earned an estimated $19 billion between July 2024 and June 2025, placing Kenya fourth on the continent. The report also estimated that more than six million Kenyans use digital goods, with a significant portion of the activity being done through peer-to-peer trading channels.
Similar blockchain monitoring tools are already being used elsewhere. In the United States, Immigration and Customs Enforcement moved last year to acquire forensic software from TRM Labs and Chainalysis, while both companies already provide services to agencies including the FBI, DEA, and IRS. The British tax authority, HMRC, has also contracted TRM Labs to help track down suspicious cryptocurrency transactions.
