KRA siphons KSh 10b from Kenyan crypto traders and targets KSh 60b in new regulations

• The Kenya Revenue Authority (KRA) has planned to include Kenyan cryptocurrency traders in the country’s tax bracket
• KRA chairman Anthony Mwaura disclosed during the annual taxpayers day that the sector contributed KSh 10 billion to tax revenue in the year ending June 2024.
• Mwaura said if proper regulations are put in place, the sector will deliver KSh 60 billion to the government in the current financial year.

TUKO.co.ke Journalist Wycliffe Musalia has over five years of experience in the financial field, businessand reporting technology and provides deep insights into Kenyan and global economic trends.

The Kenya Revenue Authority (KRA) has maintained plans to start taxing cryptocurrency traders.

KRA disclosed that it collected KSh 10 billion from the sector in the financial year ending June 30, 2024.

How many crypto traders paid tax to KRA in 2024?

KRA Chairman Anthony Mwaura has confirmed that the authority has obtained KSh 10 billion from 384 crypto traders.

Speaking during the annual Taxpayers Day held at State House Nairobi On Friday, November 1, Mwaura said if proper regulations are put in place, the authority will collect KSh 60 billion from the sector in 2024/2025.

“They were able to contribute KSh 10 billion. If we can talk and agree with the Central Bank of Kenya (CBK), Bitcoin and other cryptocurrency traders this year, we will be able to get KSh 60 billion from the sector. .

“We are working to ensure that everyone can contribute to national economic growth through revenue collection, guided by the principles outlined in the bottom-up economic transformation agenda,” Mwaura said.

How KRA plans to tax cryptocurrency traders

Mwaura said discussions are ongoing between CBK and other stakeholders to develop a technical committee to oversee cryptocurrency taxation.

He noted that cryptocurrency traders are willing to pay, adding that the fiscal will explore all means to place them.

“We want to explore all means. Cryptocurrency traders want to pay taxes, but KRA can’t get to them,” he said.

In October 2024, Kenya The Revenue Authority (KRA) has announced plans to a include cryptocurrency in the tax bracket to increase tax revenue collection.

right Chainalysis 2021 Global Crypto Adoption IndexKenya ranked sixth globally in cryptocurrency adoption.

statistically data showed that the estimated revenue of Kenya’s cryptocurrency market is expected to reach $41.7 million (KSh 5.2 billion) by 2024.

What Cryptocurrency Traders Said About KRA’s Plan To Tax You

Crypto sector players including Virtual Asset Chamber of Commerce in partnership with Chasing Mavericks, expressed concerns about the new tax regulations from KRA, requiring additional commitment to ensure tax compliance and business sustainability.

The authority has proposed tax regulations that will allow cryptocurrency traders in Kenya to pay a 3% tax on digital asset transactions.

Head of policy and regulatory engagement at Chamber of Commerce Virtual Asset SA Kakai emphasized the importance of ensuring that businesses continue to thrive despite the tax obligations imposed on them.

Source: TUKO.co.ke