NAIROBI, Kenya – Kenya is fast becoming one of Africa’s leading stablecoin markets, supported by a strong mobile money ecosystem and rising demand for protection against inflation and currency volatility, according to a new report by Yellow Card.
The report shows Kenya is part of a wider surge in stablecoin adoption across sub-Saharan Africa, with significant growth also recorded in Nigeria, South Africa, Ghana, Zambia, Ethiopia, and Uganda.
“The country’s strong mobile money infrastructure, especially M-Pesa, allows for easy stablecoin integration,” said Peter Mwangi, Yellow Card’s Country Manager for Kenya.
“A tech-savvy youth population also uses stablecoins for lower remittance fees and protection against currency volatility, making them practical financial tools.”
Stablecoins made up 43% of total crypto transaction volume in 2024 in the region.
Nigeria, Africa’s largest stablecoin market, saw nearly Sh2.84 trillion in transactions between July 2023 and June 2024, while South Africa recorded 50% month-on-month growth since October 2023, overtaking bitcoin as the most widely used cryptocurrency.
In East Africa, usage is increasingly shifting from speculation to practical business tools.
Sharon Tum, Yellow Card’s Regional Manager for East Africa, noted,“Stablecoin adoption is accelerating among businesses for three clear reasons: faster cross-border settlements, reduced FX costs, and hedging against currency volatility.
An array of companies are adopting stablecoins to pay suppliers and receive international payments in minutes instead of days –often at a fraction of traditional banking fees.
Globally, the stablecoin market has expanded from Sh645 billion in early 2020 to Sh29.67 trillion by May 2025, despite setbacks like the collapse of Terra’s UST in 2022.
Annual transaction values have reached Sh2,012 trillion this year,greater than Visa and Mastercard combined.
As Kenya deepens its role, regulators are moving to catch up.
The Finance Act, 2025 introduced a 10% excise duty on fees charged by virtual-asset providers, replacing the previous 3% digital asset tax.
A new Virtual Asset Service Providers Bill has also been tabled to bring exchanges and custodians under Central Bank and Capital Markets Authority oversight, with AML and counter-terrorism financing requirements.
Similar moves are underway across Africa, with South Africa licensing crypto firms, Nigeria tightening securities rules, and Ghana beginning mandatory registration for providers.
