Kenya is rapidly establishing itself as one of Africa’s fastest-growing stablecoin markets, according to a new report by Yellow Card. The surge is being driven by inflationary pressures, currency volatility, and the country’s strong mobile money infrastructure. With platforms like M-PESA Africa enabling seamless integration of stablecoins, Kenya is emerging as a hub where digital assets are not just speculative investments but practical financial tools.
The report highlights how Kenya’s tech-savvy youth population is embracing stablecoins for affordable remittances and protection against currency fluctuations. This trend aligns with a broader wave of adoption across sub-Saharan Africa, where countries such as Nigeria, South Africa, Ghana, Zambia, Ethiopia, and Uganda are also experiencing rapid growth. In 2024, stablecoins accounted for 43 percent of total crypto transaction volumes in the region, with Nigeria leading at nearly $22 billion in transactions and South Africa recording 50 percent month-on-month growth since late 2023.
Globally, the stablecoin market has expanded significantly, growing from $5 billion in early 2020 to $230 billion by May 2025. Transaction values have now surpassed $15.6 trillion—exceeding the combined totals of Visa and Mastercard. On Yellow Card’s platform, stablecoins dominate at 99 percent of transactions, with Tether (USDT) taking the lion’s share at 88.5 percent, followed by USD Coin (USDC) at 9.9 percent. This dominance underscores how stablecoins are transitioning from niche usage to mainstream financial utility both locally and globally.
Kenya’s crypto ecosystem is also receiving a boost from progressive regulatory developments. The Finance Act, 2025 repealed the three percent Digital Asset Tax and replaced it with a 10 percent excise duty on fees charged by virtual asset providers. Additionally, the proposed Virtual Asset Service Providers Bill, 2025 seeks to strengthen oversight under the Central Bank of Kenya and the Capital Markets Authority- Kenya, ensuring compliance with anti-money laundering and counter-terrorist financing measures. Together, these shifts are laying the foundation for a more structured, secure, and scalable digital asset market in Kenya.
Report Shows Kenya Rising as Africa’s Stablecoin Market
