In Soweto West, a neighborhood of Nairobi’s Kibera slum, around 200 residents now use Bitcoin to buy and sell goods. Local vegetable vendors, motorcycle taxis, and garbage collectors accept the cryptocurrency. This pilot project aims to expand financial services in one of Kenya’s poorest, most underbanked areas.
AfriBit Africa Leads the Initiative
Kenyan fintech firm AfriBit Africa brought Bitcoin to Soweto West through its nonprofit arm. Co-founder Ronnie Mdawida explained that many Kibera residents cannot open bank accounts due to a lack of documentation. Bitcoin requires no paperwork and can offer a path to financial freedom.
How the Program Works
Grants for Garbage Collectors: In early 2022, AfriBit began giving small Bitcoin grants—worth a few dollars—to local waste pickers every Sunday.
Education Efforts: The nonprofit runs community classes on crypto basics and financial literacy.
Zero-Fee Payments: Transactions on the Bitcoin Lightning Network cost nothing when using the platforms AfriBit introduced.
AfriBit estimates it has invested about $10,000 so far. Many participants live on roughly $1 a day, making even small grants meaningful.
Why Residents Prefer Bitcoin
Lower Costs Than M-PESA: Kenya’s popular mobile-money service, M-PESA, charges fees on transactions over 100 KES (about 78 cents). Bitcoin Lightning payments remain free.
Safety: With high crime rates in Kibera, some feel safer storing value in a digital wallet than in cash.
Potential Upside: Bitcoin’s five-year price surge of nearly 1,000% attracts risk-takers. Some users have 70–80% of their net worth in Bitcoin.
Merchant Adoption and Everyday Use
Vegetable vendor Dotea Anyim reports that about 10% of her customers now pay with Bitcoin. She says it is “cheap and fast” and allows her to save crypto while using cash for stock.
Concerns Over Volatility and Regulation
Critics warn that Bitcoin’s wild price swings pose a serious risk for low-income users. Ali Hussein Kassim, head of the Kenya Fintech Alliance, argued that losing 80% of one’s savings would be devastating. He also pointed out the lack of legal protections in Kenya’s still-evolving crypto regulations.
Mdawida counters that the unregulated nature of Bitcoin is an advantage. He notes AfriBit’s investment in education helps users understand and manage risks.
Global Lessons and Local Outlook
Previous national experiments—such as El Salvador’s brief stint with Bitcoin as legal tender—show the challenges of large-scale crypto adoption. In Kenya, regulators have even cracked down on some cryptocurrency promotions. However, AfriBit’s small-scale project in West Soweto has received local approval.
As Bitcoin weaves its way into Kibera’s economy, its long-term impact on financial inclusion remains to be seen. For now, residents like 23-year-old garbage collector Damiano Magak watch Bitcoin price alerts with hope. “Every time it went up and down, I knew it would eventually go up,” he said.
