Kenya Cuts Stablecoin Issuer Capital Requirement by 40% to $2.32M

Kenya lowers stablecoin entry barriers significantly, reducing capital needs to $2.32M while enforcing strict reserve segregation and CBK oversight for local issuers.

Woofun AI reports that Kenya's National Treasury has decreased the minimum paid-up capital for stablecoin issuers by 40%, setting the new threshold at approximately $2.32 million, down from the previous draft requirement of nearly $3.9 million. The Central Bank of Kenya will oversee these entities and retains the authority to mandate local platforms to stop offering tokens issued offshore.

Regulations stipulate that at least 30% of customer funds must reside in independent trust accounts at Kenyan commercial banks, with remaining assets invested locally. Issuers must maintain liquid capital equal to $463,300 or 100% of current liabilities, whichever is higher, alongside 1:1 qualified reserves. Mandatory quarterly stress tests, monthly reporting, and two-day redemption windows are also enforced.