In the heart of Kibera, Kenya’s largest informal settlement and one of Africa’s most densely populated slums, a quiet financial revolution is unfolding. Long excluded from mainstream financial systems, residents are turning to Bitcoin and other digital assets as tools of empowerment — a means to earn, save and transact outside the constraints of cash and bureaucracy. 

“I have been using Bitcoin for like one and a half years,” says Onesmas Manning, a waste collector in Kibera.

“Since I have known Bitcoin, it has been good. It helps not to carry bulky cash in the pocket — when you have cash, you become a target for thieves.”  

The adoption of Bitcoin here is not driven by speculation or hype, but by practicality. For Manning and many others, it’s a safer, more flexible alternative to physical currency in a neighbourhood where banking infrastructure is scarce and cash theft is a daily threat. 

The movement began in 2022 through Afrobit Africa, a Kenyan fintech startup, which launched a Bitcoin-based grant programme targeting Kibera’s garbage collectors.

The idea was simple: pay workers in Bitcoin rather than shillings, and empower them to transact digitally without the need for bank accounts or mobile money services that require IDs and impose transaction fees. 

“We collect waste door to door,” says another waste worker. “After sorting and recycling, we get paid in Bitcoin. I just scan and receive the payment on my phone. Then I can go shower, eat, and relax.” 

What started as an experiment has quietly expanded. Today, even vegetable vendors and tea sellers in Kibera accept Bitcoin alongside cash.

All one needs is a smartphone — no identification, no paperwork — to open a digital wallet and start transacting. 

“In many cases, people in Kibera do not have an opportunity to secure their lives with normal savings,” says a representative from Afrobit Africa.

“They are excluded from the main financial systems, but Bitcoin is trusted, permissionless, and gives them a sense of control.” 

Diyam, a vegetable vendor who started accepting Bitcoin in 2023, says it has brought her closer to a new kind of customer — younger, tech-savvy residents who prefer digital transactions. 

“Around 9 to 15 customers a day pay with it when business is good,” she explains. “I like it because it’s cheap, fast, and doesn’t have transaction costs. I save in Bitcoin and use cash to restock.” She was speaking in an interview with the Associated Press. 

Kenya’s embrace of cryptocurrency has been steadily growing. The country ranked among the top 20 globally in Chainalysis’ 2023 crypto adoption index and continues to be one of Africa’s most active crypto markets.

High inflation, a large population of unbanked individuals, and widespread mobile phone usage have created fertile ground for digital financial tools. 

This shift has not gone unnoticed by policymakers. As part of the Finance Bill 2025/26, Kenya is set to halve the digital asset tax—a move seen as a sign of growing institutional acceptance of the crypto economy.  

The tax rate, initially set at 3 per cent on the transfer of digital assets, will be reduced to 1.5 per cent, signalling the government’s interest in nurturing innovation while still keeping the sector within regulatory reach. 

The reduction is expected to lower transaction costs and encourage more informal traders and tech-savvy youth to embrace digital currencies.

Analysts believe the decision could also stimulate local blockchain startups and attract more foreign investment into Kenya’s fintech space. 

“Lowering the digital asset tax is a welcome development for the ecosystem,” says FinTech consultant Joshua Mwangi.

“It shows the government is starting to understand that overtaxing innovation can kill it before it matures. For the people in Kibera and beyond who are just starting to benefit from crypto, it makes their participation more sustainable.” 

Still, the road to widespread adoption is not without its hurdles. Crypto’s notorious volatility poses a risk to individuals with no safety nets.

In addition, digital literacy levels remain low, and smartphones — though more available than ever — are still a luxury for many households. 

Critics warn that without adequate consumer education, marginalised communities could be exposed to scams or lose their savings during market downturns. 

“There needs to be strong education and awareness,” says Irene Wafula, a financial inclusion advocate.  

“Digital money is powerful, but if poorly understood, it can hurt the very people it aims to help.” 

Nonetheless, for many residents of Kibera, the risk is worth the reward.

Bitcoin offers more than just a new way to pay—it provides financial inclusion, dignity, and autonomy in a world that often leaves them behind. 

As Manning puts it, “I may not have a bank account, but with Bitcoin, I have something that is mine. I can save, send, and spend. That’s more than I had before.” 

With grassroots adoption growing and a friendlier tax environment on the horizon, Kibera’s crypto story may just be a glimpse of a broader financial transformation across Kenya—and perhaps the continent.