Summary
- Kenya has one of the highest crypto transaction volumes in the world.
- It also has an almost 20-year history of mobile money platforms, which has helped build trust in digital services and cashless transactions.
- Crypto legislation introduced in 2025 aims to bring greater clarity and transparency to the sector, supporting growth and helping address emerging challenges.
- For further stories about how crypto is being adopted in countries worldwide, visit our Crypto in Action pages.
Why is crypto popular and what’s it used for?
More than 6 million Kenyans (over 10% of the population) own crypto. Kenyans hold an estimated $1.2 trillion in virtual assets. Stablecoins are particularly popular, notably those issued by Tether and Circle linked to the US dollar.
A ranking released by Bybit in December 2025 placed Kenya fifth globally in terms of crypto transaction volumes. This was ascribed to the rapid uptake of stablecoins. In terms of global crypto adoption, the country ranked 25th in 2025.
Crypto has proved popular among a tech-savvy population with broad access to mobile services. Approximately 85% of Kenyans own smartphones, and a large percentage of the population uses M-Pesa, which was launched in 2007. This is the country’s mobile money platform and its ubiquitous use has created trust in digital platforms and helped develop a culture of cashless transactions. It has also boosted financial inclusion, which rose to 84% by 2021 (up from 26% in 2006).
Kenyans use crypto for remittance payments (which totaled nearly $5 billion in 2024), as a tool for making NFTs, and as a store of value, particularly when the currency, the Kenyan shilling, has been under pressure against the US dollar. An IMF report from January 2025 also revealed that Kenyans used stablecoins to service international debt when the country faced a shortage of US dollars.
Specific fintech adoption initiatives have emerged; one of the most widely covered is AfriBit Africa’s introduction of bitcoin into Nairobi’s Kibera slum. Here, approximately 200 residents now use bitcoin for daily purchases. Many have limited access to traditional banks, fear the security risk of carrying cash, and find traditional remittance payment processes too expensive.
What is the authorities’ attitude towards crypto?
The authorities’ attitude has changed over time. Like many jurisdictions, skepticism marked the early years of crypto with the Central Bank of Kenya (CBK) warning on several occasions that crypto was unregulated and not legal tender. It stopped short, however, of banning cryptocurrencies. Subsequently, there has been a growing acceptance of, and interest in, the opportunities the sector presents, culminating in the introduction of legislation in 2025.
Among the opportunities that the authorities have identified is taxation. The tax-to-GDP ratio in Kenya is low (16.8% in 2022), and formalizing the sector as part of the country’s wider financial industry gives the authorities an opportunity to improve revenue generation.
Reflecting this, the authorities have been reviewing legislation since 2023, with the increased legal clarity from amendments and new laws expected to boost investment into the sector. It is also hoped that new legislation will enhance consumer confidence in virtual assets. Many Kenyans have reportedly treated the sector with caution, fearful of scams arising as a result of its unregulated nature.
It may also help remove Kenya from the Financial Action Task Force (FATF)’s Grey List. The FATF placed Kenya on the list in February 2024, primarily because of shortcomings in combating money laundering and terrorist financing. The Virtual Asset Service Providers (VASP) Bill, 2025, addressed some of the sector’s vulnerabilities to financial crime.
The authorities also created a unit to crack down on digital asset crime. This type of crime has exponentially grown along with increased adoption, costing local investors more than $43 million in 2024.
The IMF has called for a clear legislative framework, specific definitions for, and classification of, crypto assets, effective inter-agency cooperation, and continuous monitoring.
Legislative developments
In 2023, the National Assembly’s Finance and National Planning Committee approved the Capital Markets (Amendment) Bill. This sought to tax crypto trading, improve market transparency and oversight, and help address financial crime and terrorist financing.
The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, came into force in September 2023. This introduced extensive disclosure requirements designed to enhance transparency and accountability.
The following year, the National Treasury of Kenya unveiled a Draft National Policy on Virtual Assets and Virtual Asset Service Providers.
In October 2025, the parliament passed the Virtual Asset Service Providers (VASP) Bill. This marked the first clear legislation governing the sector. As part of this legislation, the country’s Capital Markets Authority (CMA) was mandated as the licensing authority for crypto exchanges and platforms.
Timeline of crypto and blockchain developments
2015
In December, the CBK issued a public notice warning Kenyans against using virtual currencies. The notice said of Bitcoin: “This is to inform the public that virtual currencies such as Bitcoin are not legal tender in Kenya and therefore no protection exists in the event that the platform that exchanges or holds the virtual currency fails or goes out of business.”
2018
Another cautionary notice was issued.
The government also created a task force to investigate the potential of AI and blockchain.
2022
In February, the authorities released a discussion paper on CBDCs.
By April, the Governor of the CBK, Patrick Njoroge, was quoted as saying that a CBDC didn’t offer a “silver bullet that will solve all the financial challenges we face today … If anything, the CBDC could exacerbate some of these challenges, if not handled correctly.”
2023
In May, the CBK presented the results of a CBDC consultation, revealing that it had no plans to issue an e-shilling in the near future, but was open to developments that could change the payment landscape.
In August, the government suspended crypto project, Worldcoin, over data privacy concerns.
The crypto and blockchain community opposed the Capital Markets (Amendment) Bill.
In September, this bill and the Anti-Money Laundering and Combating of Terrorism Financing (AML and CFT) Laws (Amendment) ACT, 2023 came into force.
2024
The government continued work in assessing and understanding the virtual payment landscape. In December, the National Treasury unveiled a Draft National Policy on Virtual Assets and Virtual Asset Service Providers, as well as the VASP legislation.
2025
In July, the government appeared to endorse the privately created Kenyan Digital Token (KDT).
In October, the VASP bill passed parliament and was set for the president’s signature.
Outlook
There is a reason why Kenya has what’s become known as Silicon Savannah. Many Kenyans, particularly younger people, are technologically savvy and embrace the growing range of financial tools at their disposal.
M-Pesa is the most widely used of these, but it is centrally controlled and CBK regulated. For those seeking greater autonomy or facing restrictions on their access to financial products, crypto is more appealing. It’s been suggested that the two systems can work together, with M-Pesa meeting local needs and crypto for overseas payments, and potentially storing value.
With internet penetration growing, legislation in place, and further technical work expected, Kenya’s crypto sector is expected to become increasingly attractive. The authorities must be careful, however, to address the rising incidence of digital crime and fraudulent schemes. If they achieve this, the legitimate crypto sector will gain greater trust, and with this, traction.
