- Bitcoin has become a safer, cheaper and faster payment alternative in Kenya’s largest slum district
- Proposed 3% crypto tax on transactions can influence this approval
Bitcoin [BTC] The adoption in Kenya has risen, even in informal settlements, with a growing acceptance in the largest slum in the country – Kibera. However, his traction is now confronted with a risk for an important regulatory framework.
According to a recent ABC news reportSelect local traders and community workers now accept BTC payments. When asked the reasons behind choosing Bitcoin, said a supermarket seller,
“I like it because it is cheap, fast and has no transaction costs.”
Another community worker who helps with waste management added that he prefers BTC payments because it is safer, with reference to the high crime percentage in the slum.
This summarizes the BTC and Crypto’s financial inclusion -USE Case, especially in regions with low bank access.
Unfortunately, this enthusiasm and growth can falter with a crypto tax proposal of 1.5% in the Virtual Asset Service Providers (Vasp) Bill 2025.
Does the Crypto account of Kenya influence the adoption of BTC?
According to regulators, the bill would offer the necessary clarity in the sector that has seen an inflow of global players such as Binance, Bybit and Bitget.
However, the bill also refers to a flat 3% digital activist (that) on all crypto transactions, regardless of whether you make a profit or loss.
Although there has been a proposal of 50% tax reduction to 1.5%, experts have warned that the tax traders could push offshore and suppress innovation, could push parallels to India and Indonesia.
In a CNBC interview, Rufas Kamau, main market analyst at a regional broker FXPESA, criticized the bill as untenable. He explained,
“If you do 10-20 transactions daily and pay 3% with every transaction, you will not earn money because the government will take almost everything.”
A comparable crypto load of 1% in India saw the trade volume fall by almost 90%. In fact, the Indian crypto industrial players Reportedly reached for supervisors to reduce the tax to 0.1% to increase the sector.
The same fate can happen to Kenya, a country with 6 million crypto users (10% of the population). According to the adoption of chainalysis indexKenya is in 21st place from 155 countries, making it one of the largest BTC and cryptom markets in Africa next to Nigeria and South Africa.
However, these users can opt for peer-to-peer (P2P) and non-registered offshore platforms if the tax of 1.5% -3% is assumed. In addition, the substantial tax surpasses the local mobile payment, M-Pesa, which charges 0.04% to 1% of the total amount sent.
Bitcoin has offered Kenians a safer, cheaper and direct payment alternative. However, the proposed crypto account of the country could influence approval.