Kenya’s Ministry of Information, Communications, and the Digital Economy (MICDE) has launched the Kenya Digital Token (KDT), a privately developed national digital asset built on the Solana blockchain.
In a statement released on X, Hon. William Kabogo, Cabinet Secretary, supported the project, calling it a bold step by the private sector to expand the digital economy.
Kabogo emphasised that the token aligns with Kenya’s broader goals of fostering digital identity, technological advancement, and financial empowerment.
$KDT goals in Kenya’s digital economy
The Kenya Digital Token ($KDT) was released on July 11 on the Meteora decentralised platform as part of a move to transform Kenya’s digital economy.
The token is designed to celebrate the nation’s heritage and aims to onboard 55 million Kenyans into the digital economy. It particularly targets underserved regions like Kibera through AR-powered education and on-chain rewards.
Kabogo noted the project’s potential to unlock socioeconomic benefits, stating, “With blockchain, someone in any village can now access global markets, raise capital, or invest in tokenised assets. This technology breaks down traditional barriers and opens new pathways for prosperity.”
The government estimates that Kenyans already trade over $500 million in digital assets monthly, underscoring the growing demand for crypto-based solutions in the country.
Even as the token is not a government-issued currency, the ministry has affirmed its commitment to supporting blockchain innovation.
Kabogo revealed that Kenya is developing a National Policy on Virtual Assets and a Virtual Asset Service Providers (VASP) Draft Bill to regulate the sector responsibly.
“Digital assets are the future of finance, and Kenya cannot afford to be left behind,” he declared.
The Solana blockchain was chosen for its speed, scalability, and low transaction costs, aligning with Kenya’s Increase Bandwidth, Reduce Latency (IBRL) policy vision. The government is also exploring Bitcoin reserves and stablecoin development as a strategy to integrate digital assets into the national economy.
However, the Central Bank of Kenya (CBK) has yet to finalise KDT’s fiat pegging mechanism, leaving its legal tender status pending further negotiations.
Tokenomics and real-world utility
KDT’s distribution model prioritises Kenyan citizens, with 60 percent of tokens allocated to them under a 6-month cliff and a 3-year linear vesting schedule.
Another 20 percent is reserved for liquidity pools, while 15 percent goes to a development treasury, funding national infrastructure, tech grants, and blockchain-powered public services.
“This token unlocks more than value—it unlocks opportunity,” Kabogo stated, emphasising KDT’s focus on real-world utility over speculative trading.
The project aims to provide financial inclusion, digital skills training, and on-chain governance pathways, reinforcing Kenya’s position as a leader in Africa’s Web3 adoption.