The Kenyan Treasury has announced that it will begin collecting taxes from the estimated 4 million locals who use Bitcoin exchanges. Kenyan authorities will rely on the 1.5% digital tax service that went into force on January 1, 2021, according to a report by Business Daily Africa.The Kenyan government's attempt to collect money from popular crypto exchanges and tax-evading digital asset platforms is the digital tax, which was first suggested in 2020. The Kenya Revenue Authority (KRA) stated it anticipated receiving $45.5 million (5 billion Kenyan shillings) from the levy, as reported by Bitcoin.com News in early January 2021.Kenya can now target international cryptocurrency exchanges, as evidenced by the 2023 laws' value added tax (electronic, internet, and digital marketplace supply), which were released by Treasury Cabinet Secretary Njuguna Ndung'u.A taxable electronic, Internet, or digital marketplace supply, according to the published regulations, "includes...facilitation of online payment for, exchange, or transfer of digital assets, excluding services exempt under the Act."Kenya has one of Africa's largest percentages of residents that hold cryptocurrency, along with Nigeria and South Africa. Kenya, like its counterparts on the continent, has not accepted cryptocurrency, though. Residents have been urged by the Central Bank of Kenya (CBK) and its governor to avoid dealing with cryptocurrencies like Bitcoin. Kenyan citizens continue to buy and sell cryptocurrencies despite the warnings, which has caused the government to look at ways to tax cryptocurrency transactions.