Kenyan banks are positioning themselves to offer cryptocurrency-related services in the future, a new survey by the Central Bank of Kenya (CBK) has revealed.
The findings mark a significant shift in the financial sector’s approach to digital assets, even as the CBK maintains its long-standing caution over crypto adoption.
The survey, conducted among licensed commercial banks, microfinance institutions, and payment service providers, indicates that a number of institutions are exploring the feasibility of providing crypto services, including custodial services and crypto-backed loans.
This interest comes despite the CBK’s current directive barring regulated entities from dealing in cryptocurrencies.
“There is a clear indication of interest from some banks to offer crypto services once the regulatory environment is clarified,” noted the CBK in its report.
The push appears to be driven by rising demand from Kenyan consumers and businesses, who are increasingly using cryptocurrencies—especially stablecoins like Tether (USDT)—to settle cross-border transactions. This trend has been fueled by persistent dollar shortages and the depreciation of the Kenyan shilling, which have made traditional foreign exchange transactions more difficult.
In recent months, Business Daily reported that several Kenyan importers have turned to digital currencies to pay suppliers abroad, bypassing the delays and complexities of the formal banking system.
However, the CBK has warned that crypto assets pose significant risks, including potential use for illicit activities, lack of consumer protections, and threats to financial stability.
The bank has previously cautioned the public against investing in or trading digital currencies such as Bitcoin and Ethereum, citing their volatility and unregulated nature.
Still, the rising popularity of crypto in Kenya—a country often ranked among the global leaders in peer-to-peer crypto trading—suggests that financial institutions are preparing for a future where digital assets play a larger role in the economy.
What’s Next?
The CBK survey concludes by urging a measured approach, calling for comprehensive research and stakeholder engagement before any regulatory overhaul is considered. Industry analysts believe that the growing interest from banks may eventually pressure the regulator to formulate clear guidelines for the integration of crypto in the formal financial system.
Until then, Kenyan banks remain in a holding pattern—ready to act, but waiting on the green light from the country’s top financial regulator.
