Kenya’s Finance Ministry National Treasury has proposed to tax digital assets by 3% for the upcoming budget year. This is according to a Bloomberg report citing proposals made to legislators. The nation’s Budget will be presented June 8.

Kenyans elected William Ruto to be its president in 2022, when the regulators hadn’t yet proposed any crypto rules. Ruto’s crypto-positiveness was presumed higher than that of Raila Odinga, the losing candidate. Later in 2022 lawmakers discussed legislation that would tax crypto exchanges, wallets and transactions.

Other nations have taken similar steps in recent years. According to a United Nations report, approximately 8.5% of Kenyans or 4,25 million people, own cryptocurrency. This places Kenya fifth globally in terms of adoption.

According to the Finance Bill 2023, as seen by local news source Kenyans.co.ke, “digital assets” is defined.

According to Kenyans.co.ke, a part of the Finance Bill, 2023, defines “digital asset” as anything that has value but is not tangible, including cryptocurrencies, tokens codes, and other numbers generated by cryptographic methods or otherwise. These digital representations of value can be exchanged for or without consideration and transferred, stored, or exchanged electronically.

James Rubin is the editor.