A Nairobi-based cryptocurrency startup, has facilitated over 2,000 Bitcoin transactions in Kibera, one of Kenya’s largest urban slums. The transfers are a part of an initiative to provide financial services to communities excluded from traditional banking.
AfriBit Africa, a crypto project launched in early 2022 by community organizer Ronnie Mdawida, targets Kibera’s 250,000 residents, where over 80% of the total population lack access to formal banking services despite Kenya’s advanced mobile money infrastructure.
AfriBit Africa began by distributing cryptocurrency-denominated grants to garbage collectors and informal workers in the region. The initiative has since expanded to include over 40 local merchants accepting Bitcoin payments and 120 women as well as youth trained in upcycling programs that generate Bitcoin-denominated income.
“We’re not here to preach Bitcoin. We’re here to show that even the most overlooked communities can lead a financial revolution with tools they truly own,” said Mdawida in a recent interview.
Despite Kenya’s leadership in mobile money through M-Pesa, which serves over 30 million users nationally, significant populations in informal settlements remain underserved by formal financial institutions. Banks typically avoid operating in areas like Kibera due to infrastructure challenges and regulatory constraints.
Bitcoin transactions allow residents to bypass traditional banking requirements while maintaining transaction records and value storage capabilities. The cryptocurrency approach enables cross-border remittances and serves as an alternative store of value for communities with limited banking access.
However, economists warn about cryptocurrency volatility risks for vulnerable populations. Edward Kusewa, an economist at St. Paul’s University in Nairobi, told BBC News that “Bitcoin and other cryptocurrencies are exposed to external shocks, creating significant volatility challenges for people in informal settlements.”
Bitcoin’s price fluctuations can substantially affect the purchasing power of residents who rely on cryptocurrency for daily transactions, potentially exacerbating financial vulnerability rather than providing stability.