Kenya is rapidly emerging as one of Africa’s fastest-growing stablecoin markets, according to a new report released by Yellow Card, an African cryptocurrency exchange.
The surge in adoption is being fueled by multiple factors, including inflationary pressures, currency volatility, and Kenya’s world-renowned mobile money ecosystem. With M-Pesa already deeply embedded in everyday financial transactions, integration with stablecoins has been seamless.
“The country’s strong mobile money ecosystem, especially M-Pesa, allows for smooth stablecoin adoption,” said Peter Mwangi, Yellow Card’s Country Manager for Kenya.
“A tech-savvy youth population is also embracing stablecoins for cheaper remittances and protection against currency swings, making them practical financial tools.”
The Yellow Card study tracked adoption across emerging markets and found that Kenya is part of a broader wave of growth in sub-Saharan Africa, joining Nigeria, South Africa, Ghana, Zambia, Ethiopia, and Uganda. In 2024, stablecoins made up 43 percent of total crypto transaction volumes in the region.
Nigeria remains Africa’s largest stablecoin market, recording nearly $22 billion in transactions between July 2023 and June 2024.
South Africa has experienced a 50 percent month-on-month growth in stablecoin use since October 2023, with stablecoins overtaking Bitcoin as its most widely used digital asset.
In East Africa, adoption has moved beyond hype, with stablecoins increasingly used in daily payments, remittances, and cross-border trade.
Globally, the stablecoin sector has ballooned from $5 billion in early 2020 to $230 billion by May 2025, despite setbacks such as the collapse of Terra’s UST in 2022. This year alone, transaction values have reached $15.6 trillion—surpassing Visa and Mastercard combined.
On Yellow Card’s own platform, stablecoins account for 99 percent of all transactions. Among these, Tether (USDT) dominates at 88.5 percent, followed by USD Coin (USDC) at 9.9 percent.
Policy and Regulation
Kenya’s growing crypto economy is also being shaped by regulatory reforms. The Finance Act, 2025 repealed the three percent Digital Asset Tax (DAT) and introduced a 10 percent excise duty on fees charged by virtual asset providers, effective July 2025.
At the same time, Parliament has tabled the Virtual Asset Service Providers (VASP) Bill, 2025, which will bring exchanges and service providers under the supervision of both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). The bill also introduces anti-money laundering (AML) and counter-terrorism financing (CFT) obligations to align Kenya with international standards.
Kenya’s unique mix of youthful demographics, fintech innovation, and regulatory evolution positions the country as a key player in the next phase of Africa’s digital finance transformation. Stablecoins are no longer just speculative assets—they are becoming real-world financial tools, reshaping how Kenyans save, send, and spend money.
