For thousands of Kenyan freelancers and families relying on diaspora support, the era of waiting days for costly bank transfers is ending, replaced by the instant ping of a digital wallet.

A new report by cryptocurrency exchange Bybit reveals that stablecoins—digital tokens pegged to the US dollar—are rapidly becoming the preferred vehicle for cross-border payments, offering a lifeline against currency volatility and high transaction fees.

The Flight to Safety

The allure of tokens like USDT, USDC, and DAI is not speculative; it is practical. Bybit notes that these assets are serving as a critical hedge for Kenyans seeking to preserve their purchasing power. Unlike volatile cryptocurrencies such as Bitcoin, stablecoins maintain a 1:1 value with the US dollar, making them an attractive option for those looking to shield their earnings from the shilling's fluctuations.

This trend is not unique to Nairobi. The report highlights a pan-African shift where digital assets are evolving from niche investments into essential financial tools. In economies grappling with severe inflation—such as Nigeria, where rates have exceeded 30 percent, and Zimbabwe—holding local currency has become a high-risk strategy.

“As a result, Stablecoins... are now widely used as an alternative store of value,” the report emphasizes. For a Kenyan freelancer earning in dollars, keeping funds in stablecoins avoids the immediate loss of value often seen when converting to local currency during volatile periods.

Why the Shift?

The migration from traditional money transfer operators to blockchain solutions is driven by three distinct economic realities affecting the Kenyan household:

• Cost Efficiency: Traditional remittance corridors can charge upwards of 7 percent in fees. Crypto transactions often cost a fraction of a dollar, meaning more money arrives home for school fees and groceries.
• Speed of Settlement: While bank wires can take up to three business days, stablecoin transactions settle in minutes, regardless of banking hours.
• Inflation Hedging: Holding digital dollars allows users to navigate foreign exchange restrictions and maintain value until the funds are needed.

Regulation on the Horizon

This surge in adoption comes at a pivotal moment for Kenya's regulatory landscape. In October 2025, the government gazetted the Virtual Assets Service Providers Bill, a legislative framework designed to bring order to the crypto sector.

The bill seeks to introduce licensing for exchanges, custodians, and digital-asset brokers. By positioning itself as one of the first African nations to formalize oversight, Kenya is moving to provide clarity on taxation and investor protection—factors that analysts believe will further accelerate institutional adoption.

As the regulatory environment matures, the narrative is shifting. Crypto in Kenya is no longer just about trading; it is about the fundamental restructuring of how value moves across borders, promising a future where financial sovereignty is just a click away.