Kenya has been ranked as the world’s fifth-largest market by cryptocurrency transaction volumes as stablecoin use increases, highlighting the growth of digital asset adoption.
Stable coins are digital currency currencies that are convertible into traditional currencies such as the US dollar on a 1:1 basis.
Kenya follows Ukraine, the United States, Nigeria and Vietnam in transactional crypto use, according to the 2025 World Crypto Rankings report by global cryptocurrency exchange Bybit.
This is attributed to widespread use of the digital assets in remittances, merchant payments, cross-border settlements and day-to-day transfers.
Stablecoins like Tether (USDT) and USD Coin (USDC) are designed to have a relatively stable price by being pegged to a currency.
The report notes that global stablecoin transaction volumes hit an all-time high in July 2025.
“Adoption was led by USD-pegged stablecoins such as USDT and USDC, valued as a hedge against inflation and a gateway to dollar exposure, especially in emerging markets facing currency volatility,” Bybit says.
Kenya is ahead of the United Kingdom, Pakistan, the Netherlands, India and Indonesia, according to the Dubai-based crypto exchange, which is the world's second-largest by trading volume.
With high peer-to-peer (P2P) crypto transaction volumes, Kenya often ranks globally and in Africa, driven by remittances and a strong mobile money base.
Data from the New York-based analytics firm Chainalysis, for instance, shows that the country made Sh426.4 billion ($3.3 billion) stablecoin transactions in the year to June 2024.
Chainalysis placed Kenya as the fourth-largest recipient of stablecoins on the continent during this period behind Nigeria, South Africa and Ghana. In 2021, the firm ranked Kenya the world’s top country in P2P exchange trade.
The Bybit report notes that the Kenyan market has demonstrated readiness to adopt cryptocurrencies, especially in retail transactions.
“This activity points to a population that is already comfortable moving value on-chain, a key prerequisite for scaling crypto payroll,” Bybit’s report says.
On-chain transactions are recorded and verified directly on a blockchain’s main network, providing greater security.
Still, despite Kenya’s strong transactional performance, the report ranks the country at 51st in ‘institutional readiness’ due to an unclear regulatory environment.
This is, however, expected to change with the recently enacted Virtual Asset Service Providers (VASP) Act.
The law requires all crypto service providers, including platforms facilitating stablecoin salary payments, to be licensed and meet anti-money laundering, consumer protection and operational security standards.
“It will give employers and payroll platforms a legal pathway to send on-chain payments through regulated intermediaries,” says the Bybit report.
“This removes one of the biggest barriers for companies: uncertainty over whether using crypto for salaries could trigger compliance or enforcement issues.”
Stablecoins are viewed as a quicker and cheaper payment method, especially cross-border ones, which traditionally take days to settle and are subject to interchange and other fees.
Local traders are increasingly using the crypto to pay for imports, while Kenyans in the diaspora use it to wire cash to family. Similarly, multinationals are using stablecoins to repatriate billions of shillings, bypassing local commercial banks.
Kenya’s payments ecosystem is seen as uniquely positioned to support regulated crypto payroll at scale.
With one of the continent’s highest mobile-money penetration rates, the market already supports near-instant conversion of on-chain USDC to Kenyan shillings through platforms such as TransFi, even in the absence of a native M-Pesa stablecoins.
“This makes it possible for a software developer in Nairobi to be paid by a US-based employer in stablecoins and then cash out locally within minutes, all without touching traditional correspondent banking rails,” the report notes.
If the VASP law is implemented effectively, Bybit says these capabilities could position the country as a leading African hub for regulated on-chain salary payments.
“International companies hiring Kenyan talent could offer salaries in stablecoins with automatic conversion to shillings, ensuring workers can access funds quickly while employers remain compliant,” says the report.
