By Benadeta Mwaura - Reporter
Kenya, May 18, 2026 - Kenya’s fast-growing blockchain and cryptocurrency industry is intensifying calls for quicker adoption of stablecoins, arguing that the technology could significantly reduce the cost of cross-border payments, improve financial inclusion and position the country as Africa’s leading digital finance hub.
The push comes even as Kenyan regulators move closer to implementing stricter rules governing cryptocurrencies and other digital assets under the proposed Virtual Asset Service Providers (VASP) framework.
Industry players, fintech executives, regulators and blockchain startups made the case during the Kenya Blockchain and Crypto Conference (KBCC) 2026 held in Nairobi, where discussions largely centered on stablecoins, digital payments and the future of financial systems across Africa.
Stablecoins are digital currencies pegged to stable assets such as the US dollar or other fiat currencies, making them less volatile than cryptocurrencies like Bitcoin.
Supporters say they offer faster and cheaper international transactions, particularly in regions like Africa where remittance fees and cross-border payment delays remain among the highest globally.
According to participants at the conference, some cross-border transactions within Africa can still take days or even weeks to settle through traditional banking systems, while blockchain-powered stablecoin systems can complete transfers almost instantly at lower costs.
“The addition of stablecoin flows is a natural extension of what has always become commonplace with African consumers,” said Dave Evans, Chief Technology Officer at PawaPay, referring to Africa’s rapid adoption of mobile money platforms such as M-Pesa.
Kenya’s deep penetration of mobile money and digital payments is now being viewed as a major advantage in the race to become Africa’s blockchain and crypto innovation center. Industry stakeholders argue that the country already possesses the digital culture necessary to support wider adoption of blockchain-powered financial systems.
VALR Country Manager Peter Mwangi described Kenya as one of Africa’s most promising virtual asset markets because of its strong digital payment ecosystem and tech-savvy population.
“Kenya is increasingly becoming a very important market for virtual assets. Kenyans are very conversant with digital payments and online investments. That puts the country in a very unique position,” Mwangi said.
He added that Kenya has the potential to become “the capital of virtual assets” not just in Africa but globally if regulators create balanced and innovation-friendly rules.
The growing enthusiasm around stablecoins and digital assets is however unfolding alongside increased regulatory scrutiny.
Kenya is currently implementing the Virtual Asset Service Providers Act, 2025, the country’s first major legal framework governing cryptocurrencies and blockchain-related businesses. The law gives oversight powers to both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
Under proposed regulations published by the National Treasury earlier this year, all virtual asset service providers operating in Kenya will be required to obtain licences, establish local offices and comply with stricter reporting obligations aimed at improving accountability and combating money laundering.
Capital Markets Authority Deputy Director for Market Development Justus Agoti said regulators are seeking to balance innovation with consumer protection and financial stability.
“We are looking at how best we can support this market to grow in an orderly, safe and efficient manner while ensuring consumer protection and market integrity,” Agoti said during the conference.
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Agoti defended the push for tighter oversight, noting that every functioning market requires rules and accountability mechanisms. “Without a local presence, licensing will not be granted. This gives us a foothold on accountability,” he stated.
The tighter controls are partly linked to Kenya’s efforts to strengthen anti-money laundering systems after the country was placed on the Financial Action Task Force (FATF) grey list over weaknesses in monitoring financial crimes.
Despite supporting regulation in principle, some blockchain firms and startups have warned that excessive licensing costs and compliance requirements could slow innovation and push smaller firms into informal peer-to-peer markets.
“There is what we call a fear tax in new sectors,” Agoti acknowledged while responding to concerns over proposed taxes and compliance costs in the digital assets industry. Industry stakeholders argue that poorly designed rules could reduce Kenya’s competitiveness at a time when global investment in digital assets and blockchain infrastructure is accelerating.
Globally, stablecoins have become one of the fastest-growing segments in digital finance, with worldwide stablecoin markets now valued at more than $300 billion according to international industry estimates.
Countries including the United States, the United Kingdom and members of the European Union are also reviewing or revising stablecoin regulations as governments attempt to balance innovation with financial stability concerns.
For Africa specifically, stablecoins are increasingly being viewed as a possible solution to some of the continent’s most persistent financial barriers. Cross-border payments within Africa remain expensive, fragmented and heavily dependent on foreign intermediary banks. Many African businesses also struggle with currency volatility and limited access to international payment systems.
Stablecoins potentially offer an alternative by allowing businesses and individuals to move money digitally across borders with fewer intermediaries and lower transaction costs.
Several participants at the Nairobi conference noted that blockchain-based payments could especially benefit freelancers, exporters, remittance recipients and small businesses engaged in regional trade.
Kenya’s youthful population and high mobile phone penetration are also seen as major drivers behind the country’s rapidly growing interest in virtual assets. Reuters previously reported that Kenyan lawmakers viewed digital assets as an important tool increasingly used by young people for payments, investments and business.
As Kenya moves closer toward formal regulation of cryptocurrencies and digital assets, the country now finds itself at a critical crossroads. Regulators are attempting to tighten oversight, improve transparency and reduce financial crime risks, while the private sector is pushing for rules that encourage innovation and allow Kenya to capitalize on its already strong fintech reputation.
The outcome could determine whether Kenya emerges as Africa’s leading blockchain and stablecoin hub or whether heavy regulation slows momentum in one of the continent’s fastest-growing digital sectors.