Luno Is Back in Kenya After 10 Years — Here’s What It Means for Crypto in Africa
Luno’s re-entry fits into a broader shift happening across the continent.
After a decade-long absence, crypto exchange Luno is back in Kenya with a full suite of trading services for both retail and institutional users.
The timing is no coincidence. Kenya is currently reviewing a draft law that could formally regulate virtual asset providers, and Luno is clearly positioning itself ahead of the curve.
Luno, a UK-based company operating in Nigeria and South Africa, first entered Kenya in 2013 under the name BitX, before quietly exiting in 2014. While no official reason was given, many in the space attributed it to crypto’s chaotic early phase, when regulators were unsure of what to do with digital assets and most markets lacked clear rules. But 2025 feels different.
The Kenyan Parliament is now reviewing the Virtual Asset Service Providers (VASP) Bill. If passed, it would require exchanges and wallet providers to register with both the Capital Markets Authority and the Central Bank, open local offices, and comply with AML and consumer protection standards. It also covers stablecoins, token offerings, and crypto wallets, suggesting a comprehensive framework is finally taking shape.
This is the kind of environment that could support Luno's business model. Backed by Digital Currency Group, the exchange has shifted from a hybrid model to a full-on crypto trading app, now offering BTC, ETH, USDT, and USDC with instant KES deposits and a referral program. It’s a strategic bet that Kenya’s crypto space is ready to mature.
Acquah Nana Yeboah
Still, the road hasn’t been smooth. In 2023, Kenya introduced a controversial 3% digital asset tax, later revised to 1.5%. Just this June, Parliament overturned that tax entirely, replacing it with an excise duty on transaction fees—an adjustment expected to ease costs and bring users back to local platforms.
Luno’s re-entry fits into a broader shift happening across the continent. Nigeria, South Africa, and Ghana are all inching toward regulatory clarity, not by banning crypto, but by defining how it fits into their systems. In 2024, Luno secured a crypto-asset service provider license in South Africa and is currently pursuing one in Nigeria under the SEC’s new incubation program.
As part of this crypto push, Nigeria’s SEC has now granted provisional licenses to Busha Digital Limited and Quidax Technologies Limited, marking them as the first officially recognised crypto operators under the Accelerated Regulatory Incubation Program (ARIP).
With Africa’s crypto market projected to hit $4.8 billion in 2025, platforms like Luno are placing early bets. Whether Kenya becomes a regional hub is still uncertain. But one thing’s clear: Luno plans to be there when it happens.
