Trust & Compliance

When dealing with money, trust and compliance are non-negotiable. In Kenya’s regulated financial landscape, we hold ourselves to standards that meet or exceed those of traditional banks. Below are the key ways NHX Finance and KESY are built to protect your funds, maintain transparency, and operate fully within the law.

Interested in knowing more about Kenyan Financial Regulations? Check out the VASP bill and CMA regulations here.

Institutional Partners

Even in traditional finance, issuing a stablecoin requires trusted custodians, regulators, and infrastructure providers. At NHX, we only partner with Kenya’s most established and regulated institutions.

  • Reserve Custody & Investment: All KES deposits are held in segregated client accounts at KCB Bank and invested exclusively in Central Bank of Kenya (CBK) Treasury bills — government securities backed by the full faith and credit of the Republic of Kenya.

  • KYC & AML: Identity verification via Smile ID, a CBK-approved provider compliant with Kenya’s Proceeds of Crime and Anti-Money Laundering Act.

  • Blockchain Layer: KESY is issued on Hedera, a public network governed by global enterprises (Google, IBM, Boeing) and certified carbon-negative.

For every product, the rule is simple: only regulated, audited, and reputable partners.

Transparency & Disclosure

We believe on-chain finance should be more transparent than traditional banking — not less.

  • Daily Proof of Reserves: Every 24 hours, NHX publishes an immutable reserve attestation on Hedera Consensus Service (HCS), proving KES in T-bills ≥ KESY in circulation + 5% buffer. View live here.

  • Smart Contract Audits: All minting, staking, and transfer logic is open-source and audited. Full reports here.

  • Financial Audits: NHX Finance Ltd undergoes annual audits by PwC Kenya; summaries available to institutional minters upon request.

  • Real-Time Dashboard: Track total supply, reserve balance, yield distribution, and mint activity here.

Legal & Regulatory Compliance

KESY is designed from the ground up to comply with Kenya’s Virtual Asset Service Providers (VASP) Bill, 2025 and CMA Capital Markets Regulations.

NHX Finance Ltd (KESY Issuer)

  • Registered as a Private Limited Company in Nairobi, Kenya (Reg. No. PVT-XXXXXXX).

  • Operating under CMA Regulatory Sandbox Approval (pending final license).

  • Structured as a bankruptcy-remote special purpose entity — user funds are never commingled with operational capital.

  • All mints require source-of-funds verification and AML/CFT screening per CBK guidelines.

KESY Token

  • Issued via Hedera Token Service (HTS) with 1:1 redeemability after a mandatory 40–50 day reserve lock (aligned with CBK T-bill cycles).

  • Classified as a payment token, not a security — no investment promises beyond principal stability.

  • Available only to KYC-verified users; institutional mints (≥ KES 10M) undergo enhanced due diligence.

NHX Finance Ltd is registered with the Financial Reporting Centre (FRC) for AML compliance and files quarterly reports with the Capital Markets Authority.

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