Kenya’s crypto market recorded KSh740 billion ($5.7 billion) in transactions in the year to June 2026, according to blockchain analytics firm Chainalysis. The reported volume represents a 38% increase from KSh505 billion ($3.89 billion) in the preceding period, placing Kenya ahead of Ethiopia as Africa’s third-largest cryptocurrency economy. The figures point to a market where stablecoins have a prominent role, with Bitcoin accounting for only 2% of Kenyan crypto transactions.

South Africa led the regional rankings with $39.3 billion (about KSh5.1 trillion) in cryptocurrency activity, followed by Nigeria at $38.1 billion (about KSh4.9 trillion). Kenya’s $5.7 billion placed it ahead of Ethiopia, which recorded $3.7 billion (about KSh480 billion), an 8% decline over the period, according to Chainalysis.

The difference in asset composition is one of the more notable features of Kenya’s position. Chainalysis reported that Bitcoin accounted for 2% of transactions in Kenya, compared with 92% in Nigeria, 59% in Ghana and 22% in South Africa. That places Kenya among the markets where stablecoins have a particularly prominent role in cryptocurrency activity, reflecting demand for digital dollar-denominated value in payments and business transactions.

The figures add a market-size dimension to a pattern already visible in Kenya’s digital finance sector. Stablecoins have featured in discussions about cross-border payments, access to foreign currency and the movement of money between businesses operating across different markets. Their appeal lies partly in the ability to transfer dollar-denominated value through blockchain networks, with local currency conversion and payment services connecting those transfers to conventional financial systems.

TechTrendsKE’s May reporting on African payment infrastructure examined how firms such as PawaPay and Kotani Pay were positioning stablecoins within existing payment networks. PawaPay’s Freddie Omany described settlement delays of up to four days in some markets before the use of stablecoin infrastructure, while Kotani Pay’s Felix Macharia discussed the role of stablecoins in giving small businesses and importers access to dollar liquidity.

That activity also extends beyond specialist crypto exchanges. TechTrendsKE reported in May that African exchanges including Luno, Bitget, Busha and OKX were placing greater attention on payments, business services and compliance alongside trading. Busha’s business transfer services were among the examples of how cryptocurrency platforms were pursuing commercial use cases beyond individual buying and selling.

For Kenyan businesses, the demand for dollar-linked payment options sits within a wider market shaped by foreign-currency needs. Kenya’s foreign-currency deposits reached KSh1.52 trillion, with deposits rising by KSh240.57 billion year on year, according to figures covered by TechTrendsKE on October 27. The banking data points to the scale of dollar holdings within the formal financial system, where companies and households maintain foreign-currency balances for trade, payments and other obligations.

Stablecoins offer another route for moving dollar-denominated value, particularly where businesses need to settle transactions across borders. TechTrendsKE’s July reporting on Verto described a payment model combining local currency collection, stablecoin transfers and final settlement in the recipient’s currency. Verto’s Mark Mwaniki said the company had moved more than $20 billion across African borders since its launch.

The same demand has drawn interest from companies building payment connections between crypto wallets and local financial services. In September, TechTrendsKE reported on a partnership between DCSPay and Kotani Pay that would connect USDT and USDC-funded payouts to local currency payments through mobile money and USSD channels, with Kenya among the markets targeted for expansion.

The use of stablecoins for international payments has also featured in reporting on multinational operations. Starlink was cited as an example of a company using stablecoins to repatriate payments collected in Kenyan shillings to the United States. The example illustrates how the technology can serve corporate treasury and settlement needs, in addition to remittances and smaller business transfers.

Kenya’s licensing rules reshape the operating environment

The growth in transaction activity is taking place as Kenya builds a formal regulatory framework for virtual asset businesses. The Virtual Asset Service Providers framework gives the Central Bank of Kenya and the Capital Markets Authority roles in supervising different parts of the sector, bringing crypto exchanges, wallet providers and other service operators into a licensing structure.

The regulatory framework also reaches into the stablecoin market. Kenya’s VASP rules provide for CBK approval of stablecoin issuers, alongside requirements covering reserves and redemption. The rules also prohibit providers from paying remuneration simply for holding stablecoins, a provision that shapes how issuers can structure products and attract users.

Capital requirements are another part of the framework. Kenya’s proposed thresholds include minimum paid-up capital of KSh300 million for stablecoin issuers, KSh150 million for wallet providers, KSh100 million for exchanges, KSh20 million for virtual asset managers and KSh10 million for payment processors. The requirements place a substantial financial obligation on firms seeking to operate locally, particularly smaller companies entering the market.

TechTrendsKE reported in August that the capital rules had prompted concerns about the cost of remaining in Kenya, with some industry participants warning that startups could consider other jurisdictions, including South Africa and Mauritius. The Africa Digital Assets Association also called for an extension of the licensing timetable, seeking an additional eight months to prepare for compliance.

The regulatory debate has extended to reporting obligations. In March, TechTrendsKE reported on draft stablecoin disclosure rules from the CMA that proposed regular reporting on holder numbers, transaction volumes, circulating value and reserve assets. The proposals also included daily transaction data, placing greater emphasis on how stablecoin activity is monitored and reported.

For businesses, licensing is only one part of the operating equation. TechTrendsKE’s September coverage of the VASP framework examined how access to banking, foreign exchange, liquidity and payment networks would remain important to crypto companies seeking to serve customers. A licence provides a regulatory basis for operating, while the ability to connect digital asset services to established financial infrastructure determines how those services reach businesses and consumers.

Compliance and financial crime remain part of the market’s story

The expansion of crypto activity has also brought greater attention to transaction monitoring and financial crime controls. Stablecoin transfers can move across blockchain networks, creating a need for firms to monitor wallet activity, verify customers and assess the origin and destination of funds.

In July, TechTrendsKE reported on an investigation involving suspected transactions worth more than KSh300 million, with authorities seeking to freeze KSh115 million linked to a network of shell firms, Binance wallets and USDT transfers. The Asset Recovery Agency was involved in the case, which also highlighted the use of blockchain analytics in investigations into suspected financial crime.

The issue has implications for exchanges, wallet providers and payment companies as Kenya implements its licensing framework. TechTrendsKE’s May reporting on transaction monitoring examined how firms including Verto, Busha, Fonbnk and Choice Bank were investing in systems for fraud detection, customer onboarding, liquidity monitoring and compliance. These controls form part of the infrastructure required to handle larger transaction volumes while meeting financial services obligations.

Security risks also extend to the platforms holding or processing digital assets. TechTrendsKE reported in October that Binance had suspended withdrawals following a $6.3 billion hack, bringing attention to the operational risks facing large crypto exchanges and the role of asset freezes in responding to security incidents.

Kenya’s KSh740 billion in reported cryptocurrency transactions therefore sits within a market with several connected developments: demand for digital dollar payments, commercial use of stablecoins, a growing regulatory framework and greater scrutiny of how crypto transactions are handled. Chainalysis’ figures place the country among Africa’s largest crypto economies, while the small share attributed to Bitcoin points to a market whose activity has a distinct composition. The next stage of Kenya’s crypto market will be shaped by how payment providers, businesses and licensed virtual asset firms operate within that environment.

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