Kenya VASP Licensing & Compliance Resource Centre
The central hub for licence categories, CBK/CMA jurisdiction, costs, AML and the transition deadline.
Read insight →Founders building an intermediary business, one that helps clients buy, sell, evaluate or manage virtual assets, often assume a single "crypto adviser" licence covers the whole model. Under the VASP framework, three related but distinct categories generally apply, each with its own regulatory expectations.
Virtual Asset Broker
A broker executes transactions on behalf of clients, typically without exercising independent discretion over what to buy or sell. The core regulatory concerns are best execution, conflicts of interest (particularly where the broker also trades on its own account), and clear disclosure of fees and commissions.
| Category | Core function | Discretion over client assets |
|---|---|---|
| Broker | Executes client-instructed transactions | None |
| Investment Adviser | Recommends virtual asset investments | None (client decides) |
| Virtual Asset Manager | Manages a portfolio on the client's behalf | Full or partial discretion |
Virtual Asset Investment Adviser
An adviser recommends virtual asset investments to clients but leaves the actual investment decision, and typically the execution, to the client. Core obligations centre on the suitability of advice given a client's circumstances, disclosure of any compensation the adviser receives from third parties (such as listing or referral fees from a platform), and managing conflicts between the adviser's own interests and the client's.
Virtual Asset Manager
A manager exercises discretion over a client's virtual asset portfolio, making buy and sell decisions on the client's behalf within agreed parameters. This is the most heavily supervised of the three categories given the direct control over client assets involved, and managers should expect governance, reporting and asset-segregation expectations closer to those applied to custodial businesses.
Choosing the right category, or more than one
A platform offering "robo-advisory" portfolio management, for example, may combine advisory and discretionary management functions depending on how much client control is retained. Map your actual client relationship and decision-making flow against these three categories rather than assuming a single generic licence applies.
Common structuring questions
- Does the client make the final trade decision, or does your platform execute automatically once a strategy is selected?
- Do you receive compensation from platforms or issuers whose assets you recommend, and is this disclosed?
- If you hold client assets while managing them, have you separately addressed the custody obligations that arise?
Not sure if your platform is a broker, adviser or manager?
We map your actual client relationship and discretion level against the three categories.
Request a Licence Classification ReviewKey legal & regulatory sources
- Kenya Law — Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025)
- Kenya Law — Virtual Asset Service Providers Regulations, 2026 (Legal Notice No. 134 of 2026)
- Central Bank of Kenya and Capital Markets Authority public guidance on VASP licensing
Frequently asked questions
Does a robo-advisory platform need a broker licence, an adviser licence, or a manager licence?
It depends on how much discretion the platform retains once a client selects a strategy. Platforms that execute trades automatically on a client's behalf without further client instruction are closer to a manager function than a pure advisory one, and should be assessed on that basis.
Can a broker also custody client virtual assets?
A broker that holds client assets, even temporarily during settlement, takes on custody-related obligations in addition to its brokerage function, and should address both sets of requirements rather than treating the custody element as incidental.
Do referral or commission arrangements need to be disclosed to clients?
Yes. Compensation received from third parties in connection with recommendations made to clients is a core conflicts-of-interest disclosure point across the broker, adviser and manager categories.
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Read insight →The information on this website is general in nature, is not legal advice, and does not create an advocate-client relationship. Figures, fees, capital thresholds and procedural requirements under the Virtual Asset Service Providers Act, 2025 and the Virtual Asset Service Providers Regulations, 2026 should be confirmed against the current Gazette text and regulator guidance before action is taken. Please contact Njau & Associates Advocates for advice on your specific circumstances.