Bitcoin News

Story: Bitcoin Gains Ground in Kenya’s Slums as New Crypto Tax Threatens Growth

By Steven Anderson

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Bitcoin is gaining traction in one of the least expected places—Kibera, Kenya’s largest slum.

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However, this wave of grassroots adoption may soon face serious challenges. A proposed tax on digital assets in Kenya threatens to slow down momentum, raise transaction costs,…

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Bitcoin Finds Purpose in Informal Economies

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In recent months, community members in Kibera have started to accept Bitcoin for goods and services.

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One vendor explained the switch by saying, “I like it because it’s cheap, fast, and has no transaction costs.

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This shift isn’t just about convenience—it’s about inclusion. In places where access to banks and mobile money services like M-Pesa can be unreliable or expensive, Bitcoin offers…

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The Regulatory Threat: Kenya’s Crypto Tax Proposal

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As Bitcoin adoption grows, the Kenyan government is taking notice—and considering tighter regulations.

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After public criticism, a revised version suggests reducing the tax to 1.5%, but that may still be too high for most retail users and traders.

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Experts argue the flat tax could hurt the very communities that are starting to benefit from crypto adoption.

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This approach could drive users away from regulated platforms toward less secure peer-to-peer or offshore services, reducing the government’s ability to monitor and benefit from…

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Kenya’s situation mirrors that of India, where a 1% tax on crypto trades led to a near 90% drop in trading volume across centralized exchanges.

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Kenya, with approximately 6 million crypto users—roughly 10% of its population—could suffer a similar fate.

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One of the key reasons Bitcoin has gained popularity in Kenya is the high cost of mobile money services. Platforms like M-Pesa typically charge 0.

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This cost difference is a game-changer for low-income earners who live paycheck to paycheck. A 1.

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