Kenya ranks fifth globally in crypto use as stablecoins power payments boom

Kenya’s embrace of digital currencies has positioned it among the world’s leading crypto markets, with stablecoins driving a surge in remittances, retail payments and cross-border transactions.

According to the 2025 World Crypto Rankings report by global cryptocurrency exchange Bybit, the country now ranks fifth globally in crypto transaction volumes, trailing only Ukraine, the United States, Nigeria and Vietnam.

The ranking is driven by Kenya’s heavy use of stablecoins for everyday payments, peer-to-peer transfers and international settlements. Stablecoins such as Tether (USDT) and USD Coin (USDC) dominate activity because they are designed to maintain relatively stable prices by being pegged to fiat currencies.

Stablecoins, which are convertible into traditional currencies such as the US dollar on a 1:1 basis, account for the bulk of activity.

Kenya follows Ukraine, the United States, Nigeria and Vietnam in overall transactional use, according to the report, which attributes the country’s strong performance to the widespread use of crypto for remittances, merchant payments, cross-border settlements and day-to-day transfers.

Stablecoin transaction volumes

The report notes that global stablecoin transaction volumes reached an all-time high in July 2025, highlighting their growing role in the global financial system.

“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,” reads the report.

Kenya now ranks ahead of several major economies, including the United Kingdom, Pakistan, the Netherlands, India and Indonesia. Bybit, which is headquartered in Dubai, is the world’s second-largest cryptocurrency exchange by trading volume.

The country’s position is reinforced by consistently high peer-to-peer (P2P) crypto transaction volumes, which have seen Kenya rank prominently both globally and across Africa. This activity is largely driven by remittances and the country’s strong mobile money ecosystem.

Data from New York-based blockchain analytics firm Chainalysis shows that Kenya recorded Sh426.4 billion ($3.3 billion) in stablecoin transactions in the year to June 2024. During this period, Chainalysis ranked Kenya as the fourth-largest recipient of stablecoins in Africa, behind Nigeria, South Africa and Ghana. In 2021, the firm ranked Kenya as the world’s top country in P2P exchange trade.

Bybit notes that Kenya’s market shows strong readiness to adopt cryptocurrencies, particularly in retail transactions.

“This activity points to a population that is already comfortable moving value on-chain, a key prerequisite for scaling crypto payroll,” reads Bybit’s report.

On-chain transactions are recorded and verified directly on a blockchain’s main network, a feature that enhances transparency and security.

Despite Kenya’s strong performance in transactional use, the report ranks the country 51st globally in institutional readiness, citing an unclear regulatory environment as a key challenge. That position, however, is expected to improve following the enactment of the Virtual Asset Service Providers (VASP) Act.

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The law requires all crypto service providers, including platforms that facilitate stablecoin salary payments, to be licensed and to comply with anti-money laundering requirements, consumer protection rules and operational security standards.

“It will give employers and payroll platforms a legal pathway to send on-chain payments through regulated intermediaries. This removes one of the biggest barriers for companies: uncertainty over whether using crypto for salaries could trigger compliance or enforcement issues,” Bybit said in the report.

Stablecoins are increasingly viewed as a faster and cheaper payment option, particularly for cross-border transfers, which traditionally take days to settle and attract interchange and other fees.

Locally, traders are increasingly using stablecoins to pay for imports, while Kenyans in the diaspora rely on them to send money to family members back home. Multinational companies are also using stablecoins to repatriate billions of shillings, bypassing local commercial banks.

The report argues that Kenya’s payments ecosystem is uniquely positioned to support regulated crypto payroll at scale. With one of Africa’s highest mobile money penetration rates, the market already supports near-instant conversion of on-chain USDC into Kenyan shillings through platforms such as TransFi, even without a native M-Pesa stablecoin.

“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,” reads the report.

If the VASP law is implemented effectively, Bybit says these capabilities could position Kenya 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,” reads the report.

The findings place Kenya at the centre of what Bybit describes as the next phase of stablecoin adoption, where digital assets have evolved from niche instruments into a foundational element of global digital finance.