Blockchain analytics firm Chainalysis says Kenya’s crypto market recorded KSh740 billion ($5.7 billion) in transaction volume for the year ending June 2026, a 38 percent rise from the previous period.

Stablecoins account for the bulk of activity, while Bitcoin contributed only about 2 percent of Kenyan crypto transactions, contrasting sharply with the Bitcoin‑heavy mix in Nigeria and Ghana.

The dominance of dollar‑linked stablecoins reflects demand for digital dollar value in payments and cross‑border business settlements, offering an alternative to traditional foreign‑currency channels.

For Kenyan firms, stablecoins provide a route to obtain dollar liquidity for imports and regional trade, complementing the KSh1.52 trillion of foreign‑currency deposits held in banks.

Payment platforms such as Verto have already moved more than $20 billion across African borders by combining local collection, stablecoin transfers and final settlement in the recipient’s currency.

Kenya’s Virtual Asset Service Provider (VASP) framework, approved by the Central Bank of Kenya and the Capital Markets Authority, now requires licences for exchanges, wallet providers and stablecoin issuers, with capital thresholds ranging from KSh10 million for payment processors to KSh300 million for stablecoin issuers.

The rules also mandate CBK approval of stablecoin issuers, set reserve and redemption standards, and bar remuneration solely for holding stablecoins, shaping product design for firms entering the market.

Industry groups have warned that the capital requirements could push smaller startups toward other jurisdictions, while the Africa Digital Assets Association has asked for an eight‑month extension to meet licensing deadlines.

Regulatory scrutiny also extends to anti‑money‑laundering controls; a recent investigation involving over KSh300 million in suspected illicit transfers highlighted the role of blockchain analytics and the Asset Recovery Agency in freezing assets linked to USDT movements.

Overall, the surge in transaction volume, the stablecoin‑centric market structure, and the emerging licensing regime together define the practical landscape for Kenyan households and businesses considering crypto‑based payments.