Lawyers in Kenya are embracing blockchain with the enthusiasm of a caffeine-fueled intern on their first day. While the world of smart contracts and decentralized ledgers may be complex, these legal leaders are busy drafting the rules to ensure the digital frontier doesn’t turn into a lawless Wild West. As blockchain technology continues to disrupt traditional industries, these visionary lawyers are the ones we look up to as we navigate regulatory challenges and advocate for clear frameworks. Discover how Kenya’s legal leaders are laying the foundation for a secure, inclusive digital economy. Curious about who’s at the forefront?
Laura Gacho – Legal and Corporate Affairs Manager – Velex Group
As a lawyer passionate about disruptive technologies and their intersection with the law, I have always been intrigued by how innovations like blockchain create new opportunities. While I can’t pinpoint an exact moment that drew me to blockchain, two experiences stand out. The first was during TEDx Nairobi 2017, where a presenter discussed how technologies like blockchain could address inefficiencies and corruption, particularly in enforcing property rights. At the time, I was working as a conveyancer, and this idea immediately sparked my interest in how blockchain could transform such areas.
The second moment came during my master’s studies in Intellectual Property, when NFTs and the metaverse were gaining significant attention. I had the chance to explore how blockchain intersects with IP issues, including personality rights, copyright, NFT licenses, and trademarks. I also discovered how blockchain could play a vital role in anti-counterfeit efforts.
Since then, I’ve continued to explore the space, equipping myself to provide informed legal and business advisory services in Web3 and emerging technologies as the need arises.
In my view, the most significant legal challenge facing blockchain technology today is the lack of clear regulatory frameworks, particularly in jurisdictions like Kenya. This creates a challenging landscape where businesses and legal professionals must navigate uncharted territory using outdated regulatory structures. The absence of tailored regulations affects both investor and consumer confidence, limiting the growth and scaling potential of blockchain ventures. Without clarity on key legal issues like data privacy, intellectual property, taxation, and liability, the technology remains underutilized, and innovation is hindered.
To address these challenges, the industry should focus on multi-stakeholder engagement that builds awareness and fosters collaboration between regulators, developers, legal experts, and the public. Educating regulators is crucial to ensure they understand blockchain technology’s potential and limitations, which will lead to more informed and effective policies. Overcoming negative public perceptions, especially the association of blockchain with cryptocurrency scams, is another key hurdle. This misconception can hinder trust and adoption, so it’s essential for the industry to promote the legitimate uses of blockchain and cryptocurrencies. Initiatives like the submission of the Virtual Asset Service Providers (VASP) Bill by the Blockchain Association of Kenya, as well as engagements organized by the VASP Chamber of Commerce and the Kenya Blockchain & Crypto Conference (KBCC), are steps in the right direction. These efforts are helping to establish a regulatory framework that encourages innovation, protects stakeholders, and builds public confidence.
Looking ahead, I expect blockchain law to evolve significantly over the next five years as more jurisdictions adopt and refine regulatory frameworks tailored to blockchain technologies. As countries become more open to blockchain, its applications will expand, and more robust regulations will likely emerge, boosting consumer and investor confidence and driving further growth in the industry.
However, given the lack of a unified global approach to blockchain regulation, lawyers will need to navigate varying regulatory requirements across different jurisdictions. This will require a deep understanding of the unique legal frameworks in each region. Additionally, lawyers will need to stay ahead of new legal challenges surrounding digital assets, decentralized finance (DeFi), and tokenization, ensuring they can provide comprehensive legal advice as the industry continues to evolve.
Victoria Kariithi – Mwanyumba Kariithi Consulting Limited / Mwanyumba Kariithi & Company Advocates
Blockchain is one of the most captivating emerging technologies of our time. Its multidisciplinary nature spans various fields, including philosophy, governance, and law. The technology is complex and multi-layered, both conceptually and architecturally, much like an Entremet cake. This complexity is what makes blockchain such a fascinating technology that integrates various components into a cohesive whole.
What drew me to the blockchain space wasn’t so much a “what” as it was a “who.” It was a pivotal moment when I decided to have a conversation with Geoffrey Mwashumbe, a Fullstack Developer, who introduced me to blockchain. He began by discussing smart contracts and explaining technical concepts like “hashing” and “gas,” which initially went over my head. However, I took it as a challenge, one that sparked my curiosity and a desire to learn more. The more I listened, the more I became fascinated by the technology. I began to see how it could intersect with my legal background, which ultimately led me to the blockchain space.
In my view, one of the biggest legal hurdles facing blockchain technology today is the confusion surrounding its regulation. We are left with important questions that need to be addressed: Should blockchain even be regulated? If so, should we create entirely new regulations, or can existing legal frameworks be adapted? Another major challenge is the potential for blockchain to disrupt traditional legal structures. For example, dispute resolution mechanisms are shifting away from courts and arbitrators to automated smart contracts, raising important legal questions about accountability and enforcement.
There’s also ambiguity surrounding what blockchain actually is. For some, it is equated with Bitcoin or other cryptocurrencies; for others, it’s seen as a scam or simply as a distributed ledger technology supporting Bitcoin and Ethereum. A clear and unified understanding of blockchain is essential for its successful integration into legal frameworks. Without this clarity, adoption and regulation will be difficult, and the technology’s potential will be limited.
To address these challenges, the industry must prioritize education and awareness. Lawyers, in particular, need to understand what blockchain is and how it interacts with legal, industry, and regulatory frameworks. Legal professionals must grasp the technology to respond appropriately and fulfill their professional obligations. As noted by writers Bodo and Giannopoulou, it is crucial for both lawyers and regulators to understand how blockchain’s regulatory capacities interact with existing legal systems.
While some may argue against this view—particularly techno-libertarians (a lighthearted remark)—I firmly believe that law and code can and should work together. This collaboration requires blockchain developers, lawyers, and regulators to work closely. Blockchain experts have a vital role in educating legal professionals and regulators. If we expect governments or state bodies to adopt blockchain applications, they must first be educated about the technology and its regulation. It’s also important to note that regulation does not always have to mean oppressive state intervention. Instead, it can take the form of softer laws, such as standards and codes of conduct, to guide blockchain industry participants and manage the use of blockchain effectively.
Over the next five years, I see blockchain law evolving in parallel with other emerging technologies like spatial computing, Artificial Intelligence (AI), the Internet of Things (IoT), robotics, and additive manufacturing. As blockchain converges with these technologies, we should expect to navigate a complex legal landscape.
For lawyers, preparation for this convergence is key. We must be ready to address new challenges, especially in the context of legal personhood. As AI systems evolve to learn, communicate, create art, music, and even take bar exams, the question of their rights will become an increasingly pressing issue. Similarly, smart contracts are emerging as the new intermediaries in contractual relationships, and robots are taking on repetitive tasks. As these technologies evolve, we will need to have conversations about whether algorithms and machines should be recognized legally in the same way as humans. I believe legal personhood should not extend to AI or robots.
Furthermore, the convergence of blockchain and other technologies will present practical legal challenges. For example, if a smart contract used in government services makes a decision that adversely affects a party, should that decision be subject to judicial review? Similarly, if a smart contract or software agent fails to execute its task, could it be considered a breach of contract? In scenarios where robots cause harm or spatial computing technologies interfere with property rights, we will need to apply existing tort law and consider whether liability rests with the creators, the mchines, or both.
To address these challenges, lawyers should adopt a practical approach to understanding blockchain and its connections with other emerging technologies. They should work closely with developers to design innovative solutions that prioritize societal well-being, ensuring these technologies do no harm. Lawyers can play a significant role in shaping the future of blockchain law by anticipating these developments and preparing accordingly. However, addressing these challenges requires a collective effort, not a fragmented one.
Richard Odongo, MCIArb (Advocate of the High Court of Kenya, and Registered Patent Agent)
Legal Associate at Bowmans (Coulson Harney LLP)
I have always been fascinated by the intersection of law and technology. Blockchain, with its decentralized nature, offers innovative solutions to various challenges in fields like finance, supply chain, and data privacy. What particularly drew me to blockchain is its potential to empower users by removing intermediaries and fostering trust in transactions. This ability to change the way we do business, without relying on traditional institutions, was compelling.
In my view, one of the biggest legal challenges facing blockchain technology is the lack of clear and consistent regulations across jurisdictions. Different countries approach blockchain and cryptocurrencies in varying ways, making compliance difficult for businesses operating internationally. Additionally, there is a significant knowledge gap, as many users and potential adopters are often hindered by misinformation or misunderstandings about blockchain and virtual assets. This has created reluctance toward adopting these emerging technologies. Another challenge is the uncertainty around the legal recognition and enforceability of smart contracts. While they offer automation and efficiency, aligning them with existing legal frameworks and establishing appropriate dispute resolution mechanisms is still a work in progress.
To address these challenges, blockchain companies and industry leaders should actively engage with regulators to help shape policy development. By collaborating with government agencies and regulatory bodies, the industry can help create clear, consistent legal frameworks that foster innovation while ensuring compliance with national and international standards. Given the complexity and rapid evolution of blockchain technology, the industry should also invest in educating developers, legal professionals, regulators, and policymakers. A deeper understanding of blockchain’s benefits, risks, and technical workings will help create a more favorable regulatory environment and informed decision-making. To reduce regulatory fragmentation, the industry should advocate for global standards, particularly in areas such as anti-money laundering (AML), data privacy, and the classification of digital/virtual assets.
Looking ahead, I see blockchain law evolving rapidly over the next five years, particularly as blockchain intersects with other emerging technologies. Lawyers and blockchain companies will need to stay ahead of regulatory developments and advocate for harmonized global standards to avoid conflicting regulations. Engaging in regulatory dialogues and policy formulation will be crucial.
Lawyers must prepare for more complex governance structures, particularly with decentralized autonomous organizations (DAOs). Understanding DAO governance, tokenized voting systems, and the legal treatment of token holders’ rights will be essential. Blockchain law will also experience greater regulatory scrutiny and legal clarity, especially concerning smart contracts, DAOs, and compliance requirements related to data privacy and AML/KYC. As blockchain technology continues to grow in financial markets, particularly through tokenized assets and decentralized finance (DeFi), securities regulators will need to adapt. The legal treatment of tokenized securities, derivatives, and decentralized exchanges will become clearer, and lawyers will need to specialize in these evolving areas.
For blockchain companies, innovation and adaptation will be key to staying compliant and competitive in an increasingly complex legal landscape. Both lawyers and the blockchain industry must be prepared to navigate these changes to ensure growth and compliance.
Meshack Masibo, Managing Partner, Masibo Law
As a lawyer specializing in offering legal services to those in the technology sector, blockchain plays a crucial role in the industries I serve, ranging from payments to logistics and other sectors. This involvement sparked my passion for understanding both the legal and regulatory landscape governing blockchain technology, as well as the technical intricacies of the technology itself.
The biggest challenge I face is the ambiguity in the law and the lack of clarity on the regulation of blockchain technology in Kenya. For example, I often find it difficult to advise clients—particularly Virtual Asset Service Providers (VASPs) trying to enter the Kenyan market from abroad—on the exact position of Kenyan law. It’s a challenge to explain how these providers are taxable, yet not fully accepted by the Central Bank of Kenya.
To address these challenges, industry regulators, such as the Central Bank of Kenya, need to adopt a proactive approach rather than a cautious or “wait-and-see” stance. They can implement a sandbox approach to allow for testing new products and also govern the licensing of new players in the blockchain payment segment. Kenya can learn from more advanced jurisdictions like Singapore and South Africa, who have taken a more progressive approach to blockchain regulation.
Looking ahead, I foresee the formalization of the blockchain industry. Cryptocurrency exchange platforms are likely to gain wider acceptance and fall under the regulation of the Central Bank. Other key agencies, such as the Financial Reporting Center and the Office of the Data Protection Commissioner, will become increasingly relevant. Additionally, I anticipate the government’s foray into blockchain, such as the potential introduction of a Kenyan shilling-backed cryptocurrency and the use of blockchain-based ledgers to maintain land ownership records.
Robert Muoka – TMM and Partners Advocates
My interest in blockchain emerged from its potential to fundamentally reshape how transactions, ownership, and data integrity are managed across various industries. The decentralized nature of blockchain technology offers unprecedented levels of transparency, security, and efficiency, reducing the need for intermediaries and fostering trust in digital transactions. What particularly drew me in were the unique legal challenges it presents, which require innovative thinking and a departure from conventional regulatory frameworks. The intersection of law, technology, and economics in this space is fascinating, and I found the opportunity to help shape the regulatory landscape in this emerging field especially compelling.
The most significant legal challenges facing blockchain today include regulatory uncertainty, jurisdictional issues, and concerns around data privacy and security. Regulatory frameworks governing blockchain and digital assets vary widely across countries, creating a fragmented landscape that complicates cross-border transactions. Determining jurisdictional authority over decentralized networks also poses a major hurdle, as nodes and users are distributed globally. Additionally, data privacy concerns, particularly with the implementation of laws like GDPR, clash with the immutable nature of blockchain, requiring creative solutions to balance transparency with compliance. Another key challenge is the classification of digital assets, as there is ongoing debate over whether they should be considered securities, commodities, or something else, which significantly impacts legal and operational risks for blockchain-based businesses.
To address these challenges, the industry should adopt a proactive approach by engaging in open dialogue with regulators and policymakers to develop frameworks that strike a balance between innovation and compliance. Collaboration between blockchain enterprises, legal experts, and regulatory bodies is essential to creating regulatory sandboxes that allow new technologies to be tested in controlled environments. This will help regulators better understand the technology’s potential and risks before implementing broad regulations. Additionally, industry participants should focus on self-regulation and establishing standards for transparency, security, and data protection to build trust with consumers and authorities. Legal professionals in the blockchain space must remain adaptable, continually educating themselves to bridge the gap between technical advancements and legal requirements.
Over the next five years, I foresee a gradual convergence toward more harmonized global standards for blockchain regulation as governments and international bodies recognize the need for consistency to facilitate cross-border blockchain activities. There will likely be clearer distinctions between different types of digital assets, resulting in more precise regulatory frameworks. The adoption of central bank digital currencies (CBDCs) and the integration of blockchain into traditional financial systems will further push the need for clearer compliance guidelines, particularly around anti-money laundering (AML) and know-your-customer (KYC) requirements.
Lawyers in this space should prepare for an increase in disputes over intellectual property rights, smart contract enforcement, and data privacy issues. The rise of decentralized autonomous organizations (DAOs) will also raise new questions around corporate governance and liability. To stay ahead, legal professionals must deepen their understanding of the technical aspects of blockchain, while remaining active in policy discussions and industry groups. Ultimately, the industry should prepare for a shift from reactive to proactive legal strategies, helping to shape legislation that fosters innovation while ensuring consumer protection and market integrity.
Bill Okello – Okello & Kiume Advocates LLP
My interest in blockchain stems from its disruptive potential, particularly in areas like finance, governance, and legal frameworks. As a lawyer, I am fascinated by how blockchain technology challenges traditional systems, offering transparency, security, and decentralization. This creates opportunities for legal innovation and provides a chance to shape the future of how digital assets are regulated and adopted across Africa.
The biggest legal challenges facing blockchain today include the lack of regulatory clarity and frameworks specifically tailored to blockchain technology. While many African countries, including Kenya, are open to digital assets, the absence of clear regulations hampers adoption and leaves users and investors exposed to risks. There are also issues around data privacy, taxation, and compliance with anti-money laundering (AML) regulations that require more structured legal attention.
Collaboration between blockchain experts, regulators, and legal practitioners is crucial to addressing these challenges. Stakeholders need to work together to develop comprehensive regulatory frameworks that protect users without stifling innovation. Educating both the public and lawmakers on the benefits and risks of blockchain is vital to ensure well-informed policy decisions.
Looking ahead, I see blockchain law evolving over the next five years to accommodate decentralized finance (DeFi), security tokens, and broader digital asset regulation. Lawyers will need to stay ahead by gaining expertise in these emerging fields, while the blockchain industry should prepare for stricter regulations regarding compliance, particularly concerning KYC/AML, data protection, and consumer protection.
Evelyn Mwangi – Legal Counsel, Amaano
My first interaction with blockchain came in 2016 when a foreign finance executive asked me to look into BTC and ETH as investment options. Three years later, a friend mentioned investing in BTC and making good returns, which piqued my curiosity. After diving deep into whitepapers, videos, and books, I began to understand the technology behind these digital assets.
My drive to work in the blockchain space solidified when I attended an event and realized a particular organization was trying to scam people through a Multi-Level Marketing Program. My suspicions proved correct when the company was later exposed for fraud related to non-existent mining pools—a case still ongoing in the United States. This experience highlighted the need for consumer protection and progressive legislation in the blockchain industry to empower individuals with genuine financial opportunities. Since then, I’ve written articles with BitKe to demystify various blockchain use cases and their intersection with law, worked with a DAO, consulted for clients, and established valuable partnerships.
The biggest hurdle facing blockchain technology today is the lack of clear, consistent regulations across jurisdictions. We see differences in definitions, vague taxation guidelines, and even outright or partial bans in some areas. In Kenya, for instance, the Central Bank issued a cautionary notice a decade ago, and many banks still hesitate to onboard blockchain companies. However, there are signs of progress: Kenya’s Parliament has introduced a 3% digital asset tax on transactions, a proposed 15% Capital Gains Tax, a proposed 15% VAT from exchanges, and a 1.5% Digital Service Tax on income generated from digital services in 2023.
To address these challenges, the industry should adopt a multi-stakeholder approach and provide hands-on training for key decision-makers on blockchain technology and its applications. This will equip them to make informed choices around definitions, classifications, taxation, and consumer protection—without stifling industry growth.
Looking ahead, I am excited about the positive evolution of blockchain practice driven by mass adoption. I expect many countries to revise their stances on blockchain and its applications. Lawyers and industry stakeholders should anticipate stronger regulations, new tax reporting requirements, enforceable smart contracts, advances in intellectual property rights, and incentives aligned with ESG standards. I also foresee a rise in remote work and the growing popularity of digital nomad visas, giving individuals the unique blend of financial and physical freedom that this industry offers.
