## BAK Digital Assets Lobby Group Governance Charter

## BAK $1 billion Vision:

The Blockchain Association of Kenya (BAK) with mandate from The Government of Kenya through arms of Government such as National Assembly, and government agencies is embarking on a $ 1 billion plan to demonstrate the potential of Digital Assets, Defi and Blockchain Technology to raise $ 1 billion for Kenya’s economic recovery as defined by Kenya’s Vision MTP IV strategic plan (2023 - 2027), particularly in the areas of finance and production as set out by Kenya’s Vision MTP IV strategic plan (2023 - 2027).

## Objective of this Lobby Group:

The most urgent immediate step is to set a minimum standard that will allow digital asset business to be set up in Kenya.

To achieve this essential step towards policy and regulatory framework, this group has been constituted for the sole purpose of achieving the 2 KPIs below:

### a. Favourable Digital Asset Tax Regime
- Conduct advocacy efforts for a favorable Digital Asset Tax regime.

### b. Simple Digital Assets & Tokenisation Licensing Regime
- Establish a simple, straightforward and business-friendly licensing regime to enable digital assets and tokenisation businesses obtain relevant licences and operate.

### c. Deliver a Policy Report
- Deliver a Digital Assets Policy Report that would demonstate digital assets & tokenisation use cases to justify why the Bill is a key factor to unclocking $ 1 billion for Kenya’s economic recovery.

## 1. Membership Eligibility Criteria

Prospective members seeking affiliation with the core lobby group are required to meet specific financial commitments corresponding to their organizational scale:

| Membership Type | Financial Commitment | Steering Group Seat |
|:---------------------:| -------------------- | ------------------- |
| Large Global Company | $15,000 | 1 seat |
| Medium Global Company | $10,000 | 1 seat |
| Local Startup | $5,000 | 1 seat |
| Business Community | $5,000 | 1 seat |

Only paid up members falling within the categories of Big Global Companies, Medium Global Companies, and Local Startups are granted representation on the lobby group committee.

## 2. Representative Participation

Each tier is mandated to appoint a dedicated representative to actively engage in the proceedings and decision-making processes of the lobby group.

## 3. Decision-Making Protocols

### a. Approval of Plans and Roadmaps

All members are required to participate in the collaborative decision-making process and cast votes on proposed plans and roadmaps. An agenda item shall be considered to be approved upon following a vote by the majority of members on the lobby group.

### b. Consultation for Consultant Appointments

The unilateral appointment of consultants is discouraged. Stakeholder consultation is mandated prior to such appointments.

### c. Ratification Process

Plans and roadmaps securing majority votes within the lobby group necessitate subsequent ratification by BAK. Any withholding of ratification must be reasonable and transparent.

## 4. Resource Management Framework

### a. Multisignature Wallet

A multisignature wallet shall be instituted, featuring representatives including:
- The Chairperson of this lobby group.
- One BAK representative; and
- one designated global category representative.

### b. Collective Budget Approval

The lobby group will collectively engage in the preparation, voting, and approval of the budget.

### c. Reasonable Rate Determination

All service rates are expected to be reasonable with the following key considerations:

- The prevailing market rates for comparable services and expertise.
- The time, effort, and experience invested by other stakeholders to achieve this milestone so far.
- Ensuring fair compensation for the expertise and quality of service provided.
- Fostering fair and equitable financial engagement.

### d. Financial Transparency

Adherence to Generally Accepted Accounting Principles (GAAP) standards is mandatory for consultant costs, administrative expenses, and audit/accounting reports.

## 5. Leadership Structure

The lobby group is made up of a Chairperson, members and Consultants each with distinct roles:

### a. Chairperson's Role:

The Chairperson, in their esteemed position, undertakes the following responsibilities:

- **Leadership:** Providing visionary leadership to guide the lobby group towards its goals and objectives.

- **Facilitation:** Overseeing and facilitating meetings, ensuring that discussions are productive and aligned with the group's mission.

- **Representation:** Serving as the primary representative of the lobby group in external engagements, fostering relationships and collaborations necessary to meet the agreed-upon objectives of this lobby group.

### b. Members' Roles:

Members collectively contribute to the lobby group's success through the following roles:

- **Engagement:** Actively participating in meetings, discussions, and decision-making processes.

- **Specialized Contributions:** Leveraging individual expertise and experiences to contribute valuable insights and recommendations.

- **Advocacy:** Promoting the lobby group's mission and objectives within their respective spheres of influence.

- **Collaboration:** Collaborating with fellow members and the Chairperson to achieve common goals.

- **Implementation:** Actively participating in the implementation of plans and initiatives endorsed by the lobby group.

- **Decision-Making:** Participating in the decision-making process and casting votes.

- **Quality Assurance & Evaluation:**
- Implement quality assurance measures to maintain high standards.
- Participate in the evaluation of project outcomes and recommend improvements.

This collaborative structure ensures that the Chairperson and members play integral roles in steering the lobby group towards its envisioned success.

### c. Role of Consultants:

- **Research & Analysis:**
- Conduct in-depth policy, regulatory and market research and analysis relevant to the objectives of this lobby group.
- Provide expert insights and recommendations based on the findings.

- **Stakeholder Engagement & Capacity Building:**
- Develop strategies for effective stakeholder engagement.
- Design and implement capacity-building programs for project participants.

- **Policy Report & Bill Drafting:**
- Draft comprehensive policy reports based on research outcomes.
- Assist in the development and drafting of bills aligned with project goals.

- **Workshops & Readings:**
- Facilitate workshops and training sessions relevant to the objectives of this lobby group.

- **Public Participation & Campaigns:**
- Devise and execute public participation initiatives.
- Contribute to the planning and execution of consumer protection campaigns.

- **Transition, Implementation & Adoption:**
- Assist in the smooth transition and implementation of project initiatives.
- Provide support during the adoption phase, ensuring the integration of new policies.

- **Advisory Role:**
- Serve as advisors, offering expertise and guidance to project leaders and stakeholders.
- Ensure alignment of project activities with best practices and industry standards.

- **Collaboration & Communication:**
- Collaborate with project teams and stakeholders to foster effective communication.
- Ensure that all project activities align with the overarching goals and objectives.

## 6. Meeting Schedule

### a. Kickoff Call Details

The specifics of the inaugural kickoff call are to be defined, marking the initiation of collective endeavors.

### b. Regular Meetings and co-working sessions

The drafters & consultants will meet twice a week to facilitate in-depth discussions among drafters and consultants.

### c. Briefing Calls

Weekly briefing calls will be organized to provide progress updates and ensure streamlined communication channels among all stakeholders.