How Bitcoin Is Powering Financial Inclusion in Kenya’s Largest Slum

In Nairobi’s Kibera, often called Africa’s largest urban slum, around 200 residents in the Soweto West neighborhood are now using Bitcoin for daily purchases like vegetables, driven by a fintech initiative from AfriBit Africa. 

With limited access to banks, high risks tied to carrying cash, and rising costs in traditional remittance systems, some residents have turned to Bitcoin not as a speculative asset but as a practical financial tool. 

For vegetable vendors, informal workers, and small entrepreneurs, this shift is about safety, autonomy, and inclusion.

This article discusses how Bitcoin is being used on the ground in Kibera, why previous systems like M-Pesa and Sarafu-Credit matter to this story, and what this could mean for the future of digital finance in underserved communities.

Before Bitcoin: How Sarafu-Credit Paved the Way for Community Finance in Kibera

Sarafu-Credit is a mobile-based community currency system used in several Kenyan informal settlements, enabling small businesses, schools, and residents to trade without Kenyan shillings through USSD codes on basic phones. 

Launched in 2015 by Grassroots Economics, Sarafu functioned as a community currency through paper vouchers and USSD mobile wallets. It allowed residents in slum areas like Laini Saba and Soweto West to transact without Kenyan shillings or internet access.

Sarafu mirrored microcredit models like Grameen Bank through trust-based group lending. While Sarafu couldn’t scale beyond its community boundaries, it laid the foundation for Bitcoin’s arrival, offering lessons in local adoption, financial inclusion, and the move toward decentralized systems.

Why Kenyans Adopted Bitcoin for Payments

The Bitcoin protocol requires no central authority, physical branches, or formal credentials. Anyone with a smartphone and internet can store, send, or receive value.

In Kibera, where many Kenyan citizens lack ID documents or permanent addresses, Bitcoin has gained traction. Informal housing, inconsistent incomes, and lack of documentation no longer disqualify individuals from accessing financial tools.

Peer-to-peer remittance is one major use case for Bitcoin. Kenyans working abroad are using Bitcoin to send money home, in Kibera, without facing steep transfer fees. The low transaction costs and borderless nature of Bitcoin make BTC a useful alternative, especially for small amounts.

Local Adoption in Kibera: Ground-Level Shifts

In Soweto West, a sub-region of Kibera, adoption is emerging in real-time. One local vegetable vendor interviewed by ABC News (Australia) explained how she accepts Bitcoin payments from customers:

“I like it because it’s cheap and fast and doesn’t have any transaction costs. When people pay using Bitcoin, I save that money and use cash to restock vegetables. I’d like for Bitcoin rates to continue increasing so I can at least make a profit.”

Meanwhile, garbage collectors were among the first informal workers to be paid in Bitcoin. The same ABC News report quotes one worker:

“When you have cash in your pockets, you become a target for thieves and your life will be in danger. Bitcoin is good. It’s easy to use, you just scan and pay.”

The driving force behind this movement is AfriBit, a Kenyan fintech company that introduced Bitcoin to parts of Kibera three years ago. The company’s mission is to empower financially excluded communities by educating them about how to safely use cryptocurrency.

• Market vendors: Vendors accept Bitcoin via mobile wallets such as Phoenix, Muun, Bitnob, Machankura, reducing reliance on physical cash and increasing security in daily transactions.
• Saving in Bitcoin: Some vendors and workers are choosing to hold onto the Bitcoin they receive, hoping it may grow in value over time. This offers a potential form of savings outside traditional systems.
• AfriBit Africa: AfriBit runs educational sessions in Kibera to teach residents how to use mobile wallets, protect private keys, and navigate the basics of crypto safely.

Bitcoin is not replacing traditional systems overnight, but in specific use cases, it provides a safer and more accessible alternative where conventional banking falls short.

Bitcoin vs. M-Pesa

M-Pesa remains Kenya’s most widely used financial tool, thanks to its simplicity, speed, and extensive agent network. However, it is centrally controlled by telecom companies and regulated by the Central Bank of Kenya. It is possible to buy BTC with M-Pesa using Paybis or Bitvalve.

Bitcoin, in contrast, offers greater autonomy. There are no intermediaries, no ID requirements for direct use, and no centralized oversight, though some centralized exchanges may require ID depending on their KYC/AML measures in place. This distinction is vital in communities where formal systems often restrict people access to financial system.

In practice, the two systems can work together. Many residents use M-Pesa for local needs and Bitcoin for storing value or receiving funds from abroad.

Risks: Volatility and Uncertainty

While Bitcoin is gaining traction in Kibera, it comes with challenges that need to be addressed:

• Price fluctuations: Bitcoin’s value can change drastically within hours, affecting the real income of those paid in BTC.
• Limited financial literacy: Without proper education, users may mismanage funds, fall for scams, or panic during market dips.
• Lack of regulation: Kenya’s crypto sector lacks clear rules, making it harder to legally resolve disputes or protect users.
• Risk of fraud: Residents of areas with low digital literacy are more vulnerable to phishing, scams, and irreversible errors.

These risks highlight the need for safeguards, particularly education and better infrastructure, to ensure crypto use in Kibera remains safe and sustainable.

The Future of Bitcoin Adoption in Kenya

For Bitcoin adoption in Kibera to move from small-scale experimentation to lasting impact, key areas need focused support:

• Education: Groups like AfriBit and other local NGOs offer workshops on wallet safety, private key management, and crypto basics to bridge the digital knowledge gap.
• Technology: Tando enables anyone in Kenya to easily spend bitcoin by integrating the Lightning Network with existing fiat and mobile money payment systems. This provides a fast, seamless, and cost-free way to use Bitcoin, as Tando does not charge any transaction fees. In general, Kenya’s tech landscape is set to advance through increased adoption of AI, blockchain, and improved digital infrastructure to support innovation and financial inclusion.
• Policy clarity: Clear guidelines on taxation, fraud, and user protections are essential. Official recognition of crypto-based businesses could support broader adoption.

Continued collaboration between the public, private, and nonprofit sectors will be important to ensure that Bitcoin remains a tool for empowerment, not confusion or exploitation.

Conclusion

In Kibera, Bitcoin is not a Silicon Valley trend but a practical tool. For many lacking access to traditional banking, BTC provides autonomy, storage, and a means to transact digitally.

As a vegetable vendor in Soweto West put it, “I hope Bitcoin’s price keeps going up.” In places like Kibera, where cash is risky and banking is out of reach, Bitcoin could reshape financial participation not with hype, but through necessity.

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About the Author

Andrew Kamsky

Andrew Kamsky is a chart analyst and writer with a background in economics and ACCA certification. He has held roles at a Big Four firm, a fintech bank, and a listed bank specializing in currency hedging. His work explores Bitcoin, macro trends, and market structure. Outside finance, he's passionate about music, travel, and neon design.

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