Kenya, often referred to as the “Silicon Savannah” due to its thriving technology sector, has witnessed notable developments in its cryptocurrency landscape throughout 2024 and the first quarter of 2025.
The country boasts a rapidly growing crypto user base, driven by its high mobile money penetration and increasing crypto integration into daily financial transactions.
Cryptocurrency adoption and usage
Kenya ranks among the top African countries in cryptocurrency adoption, holding 28th globally in 2024. The number of crypto users in the country saw a substantial 90 percent increase in 2024, reaching 11 million holders.
Also, the region’s well-established mobile money infrastructure, particularly M-Pesa, facilitates this growth, which allows for seamless crypto integration into everyday financial activities. Retail adoption is also on the rise, with citizens increasingly using crypto for online shopping and other transactions.
Regulatory developments in Kenya
The government is actively progressing with the Virtual Asset Service Providers (VASP) Bill, which aims to create a comprehensive regulatory framework for crypto-related businesses.
The bill proposes that licensed platforms establish physical branches in the country, integrate anti-money laundering (AML), combating the financing of terrorism (CFT) safeguards, and seek regulatory approval before conducting Initial Coin Offerings (ICOs).
While the government introduced a 3 percent digital asset tax in 2023, it has also formed a ‘crypto’ working group to address regulation in the growing sector.
Despite the regulatory uncertainties, the nation has managed to collect over $78 million in taxes from the digital asset sector. However, a recent court order mandated Worldcoin to delete all biometric data collected in the country, highlighting concerns around data privacy in the crypto space.
Furthermore, Kenya is emerging as a hub for blockchain innovation beyond cryptocurrencies. The Nairobi Securities Exchange (NSE) has partnered with the Hedera Council to accelerate the tokenization of financial assets, potentially opening up new investment opportunities.
In East Africa, including Kenya, bitcoin mining is being used to finance and sustain micro-grids, which provide affordable electricity to rural areas.
Social blockchain projects are also gaining traction, with initiatives like DIGID leveraging blockchain for digital identities for displaced populations in Kenya and Uganda.
Funding and investment landscape
Although the funding data for the nation’s crypto startups in 2024 is limited, the overall growth in the tech sector and the increasing interest in blockchain suggest a positive investment environment.
The UNICEF Venture Fund is actively seeking early-stage startups using blockchain and other frontier technologies, offering equity-free funding.
Kenyan startups are also participating in broader African fintech accelerators, some of which focus on blockchain-based solutions.
Despite the advancements, challenges persist. These include public skepticism and limited knowledge of blockchain, which hinder mainstream adoption. Trust deficits and the need for clearer regulatory measures also pose obstacles.
The country boasts a vibrant ecosystem of Bitcoin education initiatives, including The Core Bitcoin Education, Bitcoin Dada (empowering women), Bitcoin Mtaani, Bitcoin Chama, and Bitcoin School Kenya.
These initiatives focus on community-led learning and aim to empower individuals with the knowledge to use Bitcoin effectively.
The University of Nairobi has integrated blockchain technology into its Master of Computer Science program and established a Blockchain Research and Development Centre.
Looking ahead, Kenya’s strong mobile money infrastructure and tech-savvy population provide a solid foundation for continued growth in cryptocurrency adoption. The anticipated regulatory clarity from the VASP Bill is expected to boost the sector further.