Kenya lowers paid in capital requirement for stablecoin issuers to $2.32 million

The Kenyan Ministry of Finance has lowered the minimum paid in capital requirement for stablecoin issuers by 40% to 2.32 million US dollars, lower than the threshold of 3.9 million US dollars in the draft rules in March last year. The Central Bank of Kenya (CBK) will regulate stablecoin issuers and other virtual asset service providers, and may require local platforms to cease offering offshore token issuances. The framework requires at least 30% of customer funds to be deposited in an independent trust account with the Commercial Bank of Kenya, and the remaining funds to be invested in qualified local assets. The fiat backed stablecoin reserve must be consistent with the anchor currency. The issuer shall maintain a working capital of $463300 or 100% of current liabilities, whichever is higher, and hold qualified reserve assets at a 1:1 ratio. At the same time, quarterly stress tests shall be conducted, monthly reserve and trading reports shall be submitted, and customers shall be ensured to redeem tokens at face value within two working days.