IMF Wants Kenya’s Sh740B Crypto Market to Share User IDs

The International Monetary Fund (IMF) wants Kenya to make crypto platforms collect and share the identity details of both sides of every transfer. The push comes as Kenyans moved a record Sh740 billion through crypto in the year to June 2026.

Under the proposal, crypto exchanges and wallet firms would pass names, national ID numbers, addresses and wallet details to the platform on the other end of a transfer. They would also send them to the Financial Reporting Centre, which spots suspicious money flows. The rule is known worldwide as the Travel Rule. Kenya already makes platforms identify their own customers. What is new is the sharing of that data between firms and with the state. Kenya also wants off a global watchlist by April 2027.

Here is what the Travel Rule would require, as reported.

Business Daily reported on 9 November that the IMF wants these duties written into law without delay. None of the reports we found names the IMF document behind the recommendation or gives its date. The IMF’s argument is the usual one. If transfers carry no names, crypto can be used to launder money, commit fraud or fund terrorism.

Why can’t Kenya simply say no? Start with the grey list. On 23 February 2024, the Financial Action Task Force (FATF) put Kenya on its list of countries under closer watch. The reason was weak controls on money laundering and terrorism financing. The government aims to leave the list by April 2027. A meeting on 1 July 2026 set a long to-do list. It ranges from finishing the FATF action plan to sharing more information between agencies. A face-to-face review with the FATF’s Africa group is due before any decision on Kenya’s status.

Kenya has also been building the legal base. Parliament passed the Virtual Asset Service Providers (VASP) Act in October 2025. The Act took effect on 4 November 2025. Existing operators had until 4 November 2026 to move onto the new licensing system, according to law firm Spencer West. The Regulations carry the date 28 July 2026. They cover licensing and customer checks, and the Central Bank of Kenya and the Capital Markets Authority share oversight. Law firm Bowmans noted that the Act points toward sharing sender and recipient details. But it said the detailed rules sat in draft regulations. Spencer West’s summary does not mention a Travel Rule. So it is unclear how far the final text goes. That gap is what the IMF wants closed.

Now the market that would be covered. Chainalysis data shows Kenyans moved Sh740 billion, about $5.7 billion, in the year to June 2026. The year before, the figure was Sh505 billion, about $3.89 billion. Two outlets report this as growth of 38%. Those two figures give about 47% by our sums, so the reported rate and the numbers do not match. Either way, the market grew fast.

Kenya is third in Africa, ahead of Ethiopia, but far behind the two leaders. By our sums, South Africa’s volume is nearly seven times Kenya’s. More than 6.1 million Kenyans, about 10.7% of the population, held digital assets by 2024, according to Dawan Africa.

The industry has so far welcomed regulation, with conditions. The Virtual Asset Association of Kenya, which represents more than 50 firms, backs the reforms. It wants changes to capital and compliance thresholds. Analyst Aly-Khan Satchu said of the broader push, “The direction is correct.”

Critics of the Travel Rule say it cuts against one reason many people turned to crypto. That reason was to move money without revealing who they are. A second worry is data safety. Sharing ID numbers and addresses between firms means more places where that data can leak. Spencer West notes that data protection is a licensing requirement. But the reports do not say how shared data would be protected.

Why it matters: Kenyans use crypto for payments, savings and sending money across borders, so a rule on identity data touches everyday users and not only traders. Kenya wants off the grey list, and the cost of staying on it falls on banks, investors and businesses. The decision will show how African governments balance two goals. One is to bring crypto into the regulated economy. The other is to keep the users it has attracted. Clear privacy safeguards will decide whether people accept the change or move to informal channels.

What to watch next: whether Kenya writes the Travel Rule into its VASP Regulations, or another law, and how soon. Watch for the IMF document itself, since the recommendation has so far been reported second-hand. Watch how many existing platforms won licences after the 4 November transition deadline. Watch for details on how shared customer data will be stored and protected. Watch the FATF review of Kenya before the April 2027 target. And watch whether the next Chainalysis figures show growth slowing or continuing once the rules bite.

Sources: Innovation Village on the IMF’s call for Kenya to end anonymous crypto transfers; Business Daily on the IMF recommendation; Kenya Today on the Travel Rule recommendation; Spencer West on Kenya’s VASP Regulations, 2026; Bowmans on the VASP Act and the road out of the FATF grey list; Dawan Africa on Kenya’s new crypto rules; Dawan Africa on Kenya’s push to exit the grey list; TechTrends Kenya on Chainalysis crypto figures; Business Daily on Kenya’s Sh740 billion in crypto payments.

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