Kenya has moved to purchase a blockchain monitoring platform capable of tracking transactions across more than 20 blockchain networks as the country prepares to supervise cryptocurrency companies licensed under a new virtual assets law.
summary
- Kenya plans to deploy blockchain monitoring software as it prepares to regulate licensed cryptocurrency businesses.
- The proposed platform will track transactions across more than 20 blockchains and report suspicious wallets and transfers.
- The move follows Kenya’s new Virtual Assets Law and proposed reporting rules for cryptocurrency service providers.
According to the tender documents It has been reviewed By Capital FM Africa The Kenya Capital Markets Authority (CMA) is seeking an advanced blockchain analytics system that can monitor digital asset activity in real-time and retrospectively.
The proposed platform will support regulatory investigations, identify suspicious transactions, and enhance compliance monitoring as the country’s cryptocurrency licensing framework moves toward implementation.
Under the tender specifications, the system must support Bitcoin, Ethereum and at least 20 other blockchain networks. It would generate automatic alerts for high-risk wallets, unusually large transfers, currency mixers, darknet-linked addresses, and entities listed in sanctions databases maintained by the United Nations and the US Office of Foreign Assets Control.
The regulator also wants software capable of mapping wallet relationships, reconstructing transaction histories, tracking funds across multiple blockchains, and assigning risk scores associated with money laundering, ransomware, fraud, and terrorist financing. Additionally, the CMA plans to use the platform to identify cryptocurrency exchanges most used by Kenyan residents and detect offshore platforms serving local users without regulatory approval.
Monitoring tools to support new cryptographic rules
The monitoring purchase comes after Kenya introduced its first comprehensive legal framework for digital assets. President William Ruto Signed the Virtual Asset Service Providers Act The law took effect in October, with the legislation set to take effect the following month.
The law divides regulatory responsibilities between the Central Bank of Kenya and the Capital Markets Authority. While the central bank oversees payment services, stablecoins and custodial wallet providers, the CMA is responsible for regulating cryptocurrency exchanges, brokers, investment advisors and tokenization platforms as Kenya works to align its regulatory framework with anti-money laundering standards set by the Financial Action Task Force.
Although the legal framework is already in place, no cryptocurrency companies have obtained licenses yet. National Treasury released draft regulations in March, and existing operators have until November 2026 to meet the new compliance requirements.
Earlier this year, Kenya’s Finance Bill 2026 was passed Proposed Additional Reporting Obligations For virtual asset service providers. Under the proposal, cryptocurrency companies will submit annual reports to the Kenya Revenue Authority containing information on reportable users and controlling persons, while the country will also be able to exchange virtual asset transaction data with foreign tax authorities under international reporting standards, according to an analysis published by KPMG Kenya.
Kenya joins global regulators with blockchain analytics
The capabilities outlined in the CMA tender align closely with commercial blockchain intelligence platforms offered by companies including String analysis, TRM Laboratoriesand ellipticalwhich provides transaction monitoring software to regulators and law enforcement agencies in several countries.
Kenya remains one of the largest cryptocurrency markets in Africa. According to Chainalysis, users in the country receive Nearly $19 billion worth of cryptocurrencies were generated between July 2024 and June 2025, placing Kenya in fourth place on the continent. The report also estimated that more than six million Kenyans use digital assets, with a significant share of the activity taking place through peer-to-peer trading channels.
Similar blockchain monitoring tools are already being used elsewhere. In the United States, Immigration and Customs Enforcement last year moved to… Get forensic software From TRM Labs and Chainalysis, while the two companies already provide services to agencies including the FBI, DEA, and IRS. The British tax authority, HMRC, has also contracted TRM Labs to help track suspicious cryptocurrency transactions.
