Market Update: Kibera’s Bitcoin economy signals new path for financial inclusion – Full Analysis

NAIROBI, Kenya, Apr 3 — A day’s earnings in Kibera can decide whether a family eats, saves, or waits for tomorrow.

For years, that reality has been shaped by cash, and later by M-PESA. But in the muddy alleys of Kibera, where boda bodas weave past vegetable stalls and water vendors, something else is beginning to take hold. Bitcoin.

Across parts of the settlement, residents are using it in everyday transactions. A customer pays for sukuma wiki. Another settles a boda boda ride. At a water point, someone pays for a jerrycan refill. It is still small, but it is happening.

Here, Bitcoin is not about speculation. It is about getting through the day with a little more control over money.

Roney Mdawida, founder of Afribit, says that is exactly why it is catching on.

“We prefer Bitcoin because it is permissionless. Anyone can download a wallet and be their own bank, especially in a community that is largely unbanked,” he said.

In Kibera’s kadogo economy, where people buy in the smallest possible quantities, transaction costs matter. A few shillings in fees can mean less food on the table.

At her vegetable stall, Dotea Anyim says that is what pushed her to adopt Bitcoin.

From vegetable stalls to water points, Bitcoin is finding practical use in Kibera’s narrow alleys. /CHARLES ADEDE

“I have used Bitcoin for three years now, and I prefer it because of its safety. No one can reverse the money after transacting, and it doesn’t have a transaction cost,” she said.

Using the Lightning Network, payments are near instant and cost almost nothing. For traders like her, that difference adds up.

But the shift is not just about buying and selling. It is also changing how people earn.

At the Afribit Women and Girls Empowerment Group, young mothers and girls are turning waste into income. Old sacks become bags. Worn-out jeans are stitched into carpets. The products are sold within the community and paid for in Bitcoin.

“With Bitcoin, young mothers can save and earn from upcycling. We are creating jobs, reducing teenage pregnancies, and helping ourselves,” said group leader Stephanie Obat.

There is also a new incentive in everyday work. Garbage collectors, water vendors and other small-scale workers are now being rewarded in Bitcoin, encouraging more people to take part in keeping the area clean and services running.

Lucie Omondi, founder of LiveGreat Foundation, says the change is visible.

“Every person who collects garbage is incentivised through Bitcoin. Today, in Kibera, it is being used more than money. There is no debt, and the transaction cost is very low,” she said.

Still, cash has not gone anywhere. Most businesses accept both. A customer can pay in Bitcoin or pull out coins and notes, depending on what works at that moment.

There are also challenges. Prices can swing, and for people living day to day, that matters.

“Sometimes we are affected by volatility, but we are in Bitcoin for the long term,” Obat said.

In Kibera, every shilling counts, and Bitcoin is helping some residents stretch it further. /CHARLES ADEDE

Kenya is beginning to put rules around the space. The Virtual Asset Service Providers Act, 2025, sets a framework for crypto services under the Central Bank of Kenya and the Capital Markets Authority. Bitcoin is not legal tender, but it is no longer operating entirely in the shadows.

Adoption has been rising steadily. From just over 10,000 users in 2017, the number has grown to more than 700,000 in 2025, driven largely by young people and those in the informal sector.

In Kibera, though, the story is simpler. It is not about replacing cash. It is about having another option.

For traders, young mothers and community workers, Bitcoin is becoming a way to earn, save and move money without losing a portion of it along the way.

On these streets, money is already changing. Whether it replaces cash or not is almost beside the point.

Visited 41 times, 8 visit(s) today