The Kenya Revenue Authority (KRA) collected over $77.5 million (Sh10 billion) from 384 different cryptocurrency traders around its region during its last financial year, which ended in June 2024.
Following the contributions, the KRA is beginning to see the crypto market in a more positive light and plans to secure additional taxes from local crypto traders.
First Crypto Collection
The current KRA chairman, Anthony Mwaura, announced the crypto contribution during the annual Taxpayers’ Day celebration at State House, Nairobi. He also revealed that this is the first time the country has received a crypto contribution to increase its tax revenue.
While the KRA chairman did not reveal much information about whether the traders were institutions or professional individual traders, he noted that, on average, each of the crypto traders contributed about $200,500 (Sh26 million), approximately $16,700 (Sh2.17 million) each month throughout the financial year.
$462 Million Revenue Boom by 2025
According to Mwaura, the KRA is in talks with other government authorities, including the Central Bank of Kenya (CBK), to reach other crypto traders in the country and obtain their tax contributions.
“We have agreed with our Commissioner-General, and I talked even to the Governor of Central Bank, the deputy governor so that we can have a joint technical committee to explore all the means. These people of cryptocurrencies, they want to pay taxes, but we’re unable to reach them,” he said.
He also revealed that if the CBK replies favorably before this year runs out and assists the KRA in contacting many bitcoin traders and others in the country generating income through crypto technology, the East African country could witness a 500% increase in crypto contributions to about $462 million (Sh60 billion) within the present financial year.
Crypto Adoption in Africa
Nigeria has been at the forefront of crypto adoption in Africa despite the various regulatory issues and the current ban on cryptocurrency. According to a recent analysis, Nigeria ranks second in the list of the top 20 crypto countries and is the only African country on the list.
Meanwhile, after standing against cryptocurrencies for a few years, Ghana is set to launch guidelines to regulate crypto transactions.