The State of Cryptocurrency in Kenya


2021 has been a whirlwind year for cryptocurrency. From the largest Series A funding by an African cryptocurrency exchange to witnessing the value of one Bitcoin exceed $60,000 (approximately Ksh 6.6 million) in the second quarter, we have just about seen it all.

On October 4, the Bank of America Corp. (BofA) recognized cryptocurrency as an asset class in what was cited as crypto being too large to ignore. This development has the potential to make a six-figure valuation a matter of ‘when’ rather than ‘if’ making it a possibly opportune time to buy cryptocurrency.

This comes even as global adoption of Bitcoin, Ethereum & similar currencies has gone up by a whooping 880%.

Kenya Is Blazing The Trail In Worldwide Cryptocurrency Adoption

Here in Kenya, cryptocurrency uptake has remained impressive – and even made headlines. In the Chainalysis 2021 Global Crypto Adoption Index, Kenya ranked fifth in cryptocurrency adoption globally. With crypto transactions exceeding Ksh. 6 billion (approximately US $55 million), Kenya is now only second to Nigeria in Africa.

While these stats are impressive, they should not come as a surprise. In 2018, the continent was dubbed as crypto’s potential next frontier by the UN’s Africa Renewal information programme. Some of the factors cited in that analysis are driving the state of cryptocurrency in Kenya today.

While negative factors such as high inflation and a significant percentage of people remaining unbanked have been at play, positive ones such as innovation and emerging use cases have helped keep crypto riding high.

Exciting News: Yellow Card Raises Africa’s Largest Round of Series A Funding For Crypto

Yellow Card, Africa’s largest exchange by geographical footprint, has announced the highest amount of Series A funding for such a venture on the continent. This initial round of funding raised more than a billion Kenyan shillings ($15 million) boosting confidence in the future of crypto in Africa.

Since it started in 2018, Yellow Card has set itself apart from other exchanges due to its push for financial inclusion, its B2C model that offers more security compared to P2P trading, and its commitment to improving access to information on cryptocurrency and blockchain.

The funds will boost Yellow Card’s operations and it’s likely we may see an expansion from the 12 territories it currently covers.

The trend we saw of cryptocurrency adoption during the pandemic is set to continue following this development as more Kenyans embrace Bitcoin, Ethereum and Stablecoins as forms of payment and assets.

More Than Just The Money: Cryptocurrency As An Agent For Positive Impact In Kenya & Beyond

Over the last couple of years, digital currency has been viewed largely as an investment tool. There have been numerous stories of people whose initial Bitcoin purchases have turned them into millionaires. Undoubtedly, this has been a major driving force for the many who are continuing to venture into cryptocurrency trading.

This is what makes the new project by CARE International even more promising. Forget about buying low and selling high. Instead, picture crypto enhancing the delivery of aid.

CARE is looking to establish whether stablecoins – a form of crypto whose value is tied to the dollar making it less volatile – can make it easier to trace funds to intended recipients. There are two pilot programs – one in Kenya targeting 1500 women and one in Ecuador seeking to reach 150 women.

If successful, the two pilot programs could lead to the adoption of cryptocurrency and blockchain technology, making aid more transparent, effective and efficient. These developments prove that indeed, cryptocurrency is no longer a niche interest for investors with a bit of extra cash to burn. Rather, we can expect it to become an integral part of our future.

Don’t Get Left Behind. Start Trading Cryptocurrency Now

If you’ve not yet made a start on buying, selling or investing in cryptocurrency, it’s not too late to begin.

The most important thing is to first understand what crypto is, how it works and how you can utilize it. Before putting your money into it, learn all you need to know.

Once you’re confident in what you know you can then easily get started on crypto trading.

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Now Read: Yellow Card Arrives in Kenya, Aims to Change the Cryptocurrency Game

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