The International Monetary Fund (IMF) has urged Kenya to enforce the Financial Action Task Force (FATF) Travel Rule, requiring cryptocurrency service providers to collect, verify, and share information about customers involved in crypto transfers. The measure is intended to strengthen controls against money laundering and terrorism financing. The Travel Rule requires virtual asset service providers (VASPs) to transmit identifying information about the sender and recipient when processing cryptocurrency transactions. This may include names, account references, physical addresses, national identification numbers, and wallet addresses.
The IMF recommends incorporating these requirements into Kenya’s Virtual Asset Service Provider regulations or another appropriate legal framework without delay. The proposal comes as Kenya’s crypto market continues to expand. Chainalysis data cited by a local business daily shows that crypto transactions reached approximately KES 740 billion ($5.7 billion) in the year to June 2026, representing a 38% increase from KES 505 billion ($3.89 billion) recorded a year earlier.
Kenya has also been under increased FATF monitoring since February 2024 due to weaknesses in its anti-money laundering and counter-terrorism financing framework. If implemented, the requirements would give authorities and receiving platforms better visibility into crypto transfers. Exchanges would also be better positioned to screen transactions against sanctions lists and identify potentially illicit funds. However, sharing transaction information between VASPs is distinct from reporting suspicious activity to Kenya’s Financial Reporting Centre (FRC).
The IMF’s recommendation adds pressure on Kenya to close gaps in its financial crime controls as crypto adoption grows. Stronger enforcement of the Travel Rule could bring greater transparency to digital asset transactions and align the country more closely with international standards.
