Best Crypto Exchanges in Kenya

Best Cryptocurrency Exchanges in Kenya

Following a review of the 18 crypto exchanges available in Kenya, we have identified the top options that align with the regulations of the Capital Markets Authority (CMA). Our assessment took into account transaction fees, platform usability, supported cryptocurrencies, and the KES deposit options. Below is a comparison of the top 5 trading platforms for Kenyan investors.

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1. Bybit

Bybit is the leading exchange in Kenya that serves over 40 million registered users worldwide. It handles a daily trading volume that exceeds $25 billion, making it a reliable platform for spot, futures, and options trading. With support for over 1,300 digital assets and leverage options of up to 100x, it offers a comprehensive trading experience. 

Beyond trading, Bybit offers a range of additional services designed to maximize earnings. These include staking options for passive income, an NFT marketplace, crypto loans, and copy trading features that allow users to mimic the strategies of successful traders. Bybit emphasizes transparency by regularly publishing its reserves, ensuring all user funds are backed 1:1.

• Fees: Maker fee of 0.02%, taker fee of 0.055% for futures, and 0.1% for spot trading.
• Supported Assets: Over 1,300 digital assets.
• Regulation & Licensing: Operates under global licenses, with adherence to Kenya's developing regulatory framework.
• KES Deposit Methods: Bank transfer, credit card, debit card, M-Pesa, Google Pay, Samsung Pay and Apple Pay.

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2. Binance

Binance is the world’s largest exchange, offering unmatched trading volume and a vast selection of digital assets. The platform supports over 350 cryptocurrencies and offers diverse trading options, including spot, futures, and margin trading with up to 50x leverage. Its high liquidity ensures that traders in Kenya can execute large trades with minimal slippage.

It provides various features that enhance the user experience, such as staking, lending, and a launchpad for new tokens. The Binance Smart Chain enables users to interact with decentralized finance (DeFi) projects, while the Binance Earn program offers flexible and locked staking options. As the largest global exchange, it can be used in Swahili and English.

• Fees: 0.1% for spot trading with discounts available when using BNB tokens.
• Supported Assets: Over 350 cryptocurrencies.
• Regulation & Licensing: Operates under multiple international licenses and available in Kenya.
• KES Deposit Methods: Bank transfer, credit card, debit card and P2P trading.

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3. KuCoin

KuCoin is recommended for earning yields on your assets, offering a wide range of staking products. With support for over 700 cryptocurrencies, it provides extensive trading options, including spot, futures, and margin trading. The platform is also known for its innovative features like KuCoin Earn, where users can stake or lend their crypto assets to earn up to 340% APY.

The platform provides a user-friendly interface, advanced trading tools, and access to a wide collection of altcoins. The platform's P2P marketplace allows for easy KES deposits, making it convenient for Kenyan users. KuCoin's robust security measures, including multi-factor authentication and anti-phishing protocols, further enhance its appeal.

• Fees: 0.1% spot trading fee with discounts for using KuCoin's native token (KCS).
• Supported Assets: Over 700 cryptocurrencies.
• Regulation & Licensing: Globally regulated and available in Kenya.
• KES Deposit Methods: M-Pesa.

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4. Phemex

Phemex is a top choice for Kenyan users seeking access to DeFi and Web3 services. The platform offers a wide range of trading options, including spot and futures trading with up to 100x leverage. Its integration with decentralized finance (DeFi) allows users to explore yield farming, lending protocols, liquidity provision, and other Web3 opportunities.

The exchange also provides educational resources and community-driven initiatives, making it an attractive option for both beginners and advanced traders in Kenya. Additional features include copy trading services, a trading bot, futures trading, several staking options, Launchpad and an OTC desk.

• Fees: Maker fee of 0.025%, taker fee of 0.075% for futures, and 0.1% for spot trading.
• Supported Assets: Over 330 cryptocurrencies.
• Regulation & Licensing: Not regulated in Kenya but available to local investors
• KES Deposit Methods: M-Pesa, credit card and debit card.

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5. Gate.io

Gate.io is known for offering the most diverse selection of cryptocurrencies, making it perfect for Kenyan traders wanting niche tokens. The platform supports over 2,100 digital currencies to trade on spot, futures and options markets with leverage up to 100x supported on hundreds of derivatives contracts. It is home to over 16 million users across Kenya and 190 other countries. 

The comprehensive ecosystem includes an NFT marketplace, staking, lending and borrowing services, trading bots, OTC trading desk and a user-friendly mobile app. The exchange also places a strong emphasis on security, with features like cold storage and multi-signature wallets to protect user assets.

• Fees: Spot trading fees start at 0.2%.
• Supported Assets: Over 2,100 cryptocurrencies.
• Regulation & Licensing: Licensed across Africa and supported in Kenya.
• KES Deposit Methods: M-Pesa, credit card, debit card and P2P trading.

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Is Crypto Regulated in Kenya?

Cryptocurrency is legal, but the regulatory landscape is still evolving. The Capital Markets Authority (CMA) in Kenya has issued advisories about the risks involved in investing and trading in digital currencies. The National Assembly approved the Capital Markets (Amendment) Bill, which introduces taxes on crypto trading, enhances regulatory oversight and mandates disclosure of digital asset holdings to curb crime and terrorism financing.

The CMA highlights that cryptocurrencies like Bitcoin, Ethereum, and others are not recognized as legal tender in Kenya. Therefore, any investments in these assets are done at the investor's own risk, without the protections typically provided under Kenya's financial regulations. While the CMA does not currently regulate these platforms or cryptocurrencies, they are legal.

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How Is Crypto Taxed in Kenya?

In Kenya, the taxation of cryptocurrency is still a developing area as the government works to establish clear guidelines.  The Capital Markets Bill 2023 introduces significant changes to crypto taxation in Kenya. It mandates that individuals involved in crypto trading or payments pay capital gains tax on their profits and imposes a 20% excise duty on fees and commissions associated with these transactions. 

Additionally, the bill requires all crypto holders to disclose their digital assets to the Kenyan Revenue Authority (KRA), aiming to enhance transparency, increase tax compliance, and integrate cryptocurrencies into the national tax system. Both residents and non-residents in Kenya would be expected to declare and pay taxes on any gains from crypto transactions once the regulatory framework is fully established.

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How to Buy Bitcoin in Kenya

For those in Kenya who are new to cryptocurrency, purchasing Bitcoin through a reliable digital asset exchange is an essential first step. Here's a simple guide to help you get started:

1. Create an Account: Begin by selecting an exchange that operates in Kenya. Sign up for an account and complete the necessary verification process, which involves providing a valid photo ID and additional documentation such as a selfie or proof of address.
2. Deposit Kenyan Shillings (KES): Go to the deposit section of your account, select KES as your deposit currency, and enter the amount you want to transfer. You can make the deposit through bank transfer, mobile money services like M-Pesa, or a credit card.
3. Choose Bitcoin: In the trading section of the platform, search for Bitcoin (BTC). Look for the KES/BTC trading pair to check the current market rate. You'll find options like market and limit orders that allow you to customize your trade.
4. Execute the Trade: When ready, click 'buy' or 'trade' to purchase Bitcoin. You can either specify the amount of Bitcoin you want to acquire or the amount of KES you wish to spend. Carefully review all order details, including the price and any fees, before finalizing the trade.

This guide offers a straightforward approach for users in Kenya to start trading Bitcoin, from setting up an account to executing their first purchase.

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Bottom Line

In conclusion, as cryptocurrency continues to grow in Kenya, understanding the best exchanges, regulatory landscape, and tax implications is recommended for investors. Platforms like Bybit, Binance, KuCoin, Phemex, and Gate.io provide Kenyans with diverse options for trading, staking, and exploring DeFi services, all while supporting deposits in Kenyan Shillings.