Just recently, towards the end of 2024, Business Daily Africa released a report claiming that Kenya appeared in the list of the top six African countries with significant stablecoin adoption. This came after other experts previously placed the country fifth in terms of global crypto ownership. While crypto has been criticized over the years, its impact has not ceased to be felt in different regions, including Kenya.
As a result, there has been a growing interest in Bitcoin and other digital currencies across different sectors and demographics in this country. According to triple-a.io, there are more than six million people owning crypto. Additionally, Kenya led the world in peer-to-peer crypto trade about four years ago. But what are the factors fuelling these trends? Well, continue reading to find answers.
The regulatory landscape
Crypto regulations in Kenya have been significantly evolving. For instance, about a decade ago, the CBK issued warnings to financial institutions against dealing with crypto. But a few years later, in 2023, the country introduced a digital asset tax (DAT) during the amendment of the Finance Act.
A 3% tax on gross income was to be imposed on digital assets trading. The main concern with the tax was that it was to be imposed without regard to whether the assets were being moved between exchanges or exchanged at a loss or profit.
Fast-forwarding to early 2024, the National Assembly’s Departmental Committee on Finance and National Planning mandated the Blockchain Association of Kenya (BAK) to develop the first draft of the crypto bill. BAK recently appeared to the committee to share its recommendations on how it could help the government come up with proper crypto regulations.
According to a January 2025 report by Fintech News Africa, the Kenyan National Treasury launched a draft policy to help come up with regulations governing assets and service providers. As part of the process, the organization called for the public to share their opinions as well.
This initiative could help clarify regulatory uncertainties and boost investor confidence. The age of instant payments
With the rapid advancement of technology, consumers now expect faster and more efficient payment solutions. A study by PYMNTS.com reveals that 78% of customers rank instant payments as an important part of their customer experience. Businesses looking to stay competitive must adapt to these shifting preferences.
,At the same time, customer acquisition costs are rising, with research suggesting that acquiring a new customer can be at least five times more expensive than retaining an existing one. This, coupled with increasing operational expenses, has led many businesses in Kenya to explore alternative payment solutions.
Cryptocurrency offers a solution by eliminating intermediaries, reducing transaction costs, and enabling near-instant cross-border payments. For small and medium-sized enterprises (SMEs), adopting crypto payments could provide a cost-effective way to streamline financial transactions while enhancing customer satisfaction.
The need for secure transactions
According to TransUnion Africa, 4.8% of digital account login attempts in the country were suspected to be fraudulent. Hence, the need to ensure online security has become very apparent. Cybercriminals are exploiting tech advancements to illegally access customer data.
Cyberattacks not only lead to financial losses but also severely impact brand reputation. A study by Spiceworks found that only 21% of customers trust established global brands to safeguard their information. This erosion of consumer confidence presents an opportunity for businesses to differentiate themselves by implementing more secure financial solutions.. Cryptocurrency provides a decentralized and highly secure alternative to traditional financial systems. Unlike most traditional platforms with centralized databases, blockchain technology distributes data across multiple nodes, making it nearly impossible for hackers to alter or manipulate transactions.Additionally, blockchain transactions are immutable, meaning once data is recorded, it cannot be changed or tampered with. This level of security, combined with strong cryptographic encryption, significantly reduces the risk of fraud and unauthorized access.
A safer financial future with Crypto
With rising concerns over digital security, Kenyan businesses are increasingly exploring cryptocurrency as an alternative means of protecting transactions and enhancing consumer trust. The government’s ongoing efforts to regulate the sector further indicate growing institutional recognition of crypto’s role in modernizing the financial landscape.
As security threats evolve, businesses and consumers must stay ahead by adopting resilient, tamper-proof financial technologies. With its robust security, decentralization, and efficiency, cryptocurrency is poised to play a transformative role in securing Kenya’s digital economy.
By embracing crypto-based solutions, businesses can leverage this critical advantage in today’s evolving digital world.
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