Kenya’s cryptocurrency market has grown into a $10 billion annual ecosystem, with stablecoins emerging as the dominant force behind transactions.
- •In a recent interview with The Kenyan Wall Street, Felix Macharia, co-founder and CEO of Kotani Pay said Kenya now has an estimated three million active crypto users, but retail peer-to-peer traders account for just 6% of total transaction volume.
- •Instead, institutions moving over $1 million per trade command 60% of the market, with professional traders handling another 30%.
- •Kenya’s 2021–2022 dollar shortages was the turning point as businesses increasingly turned to stablecoins to settle international obligations amid tight forex supply.
At the center of this shift are stablecoins, particularly Tether (USDT), the world’s biggest issuer controlling about 60% of the global stablecoin market, or about $184 billion. Macharia noted that USDT liquidity dominates emerging markets across Africa, Latin America, and Southeast Asia, making it the preferred vehicle for cross-border trade and dollar access.
In a sign of growing institutional confidence, Tether has taken a minority but significant stake in Kotani Pay, reinforcing Kenya’s position as one of Africa’s most active digital asset markets.
USDT is the largest stablecoin, with over $185 billion in circulation. Overall stablecoin supply rose to $304.6 billion in February, from $302.9 billion at the end of January, according to data from Artemis.
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