Blockchain and Crypto: Stimulants for Transforming Kenya’s Economic Landscape

By Victor MUJIDU

Kenya has exhibited a rising interest in blockchain technology and cryptocurrencies, with projects targeted at investigating potential uses.

From blockchain-based property registries to cryptocurrency remittance solutions, Kenyan entrepreneurs and organizations are looking for new ways to use these technologies to address societal concerns and propel economic development.

Earmarking the second edition of the Kenya Blockchain and Cryptocurrency 2024, Emmanuel Kata Kimeu, the Secretary, ICT-Security and Audit Control, highlighted the impactful strategies the government contributes to blockchain technology as it seeks to unlock new opportunities for economic development, improve governance, and enhance the overall well-being of its citizens.

“What the government is bringing is ensuring connectivity across Kenya by rolling out 100,000 kilometers of fiber.

Then, we are looking at putting digital hubs up to the world level of 1450 digital hubs for the country and putting 25,000 Wi-Fi spots across the country in different markets and public places so that people can have access to the internet first,” he said.

Kenya’s thriving tech sector, known as the “Silicon Savannah,” fosters blockchain innovation and entrepreneurship.

Startups and developers are looking into blockchain-based solutions for a variety of industries, including agriculture, healthcare, identity management, and supply chain logistics.

“I think in terms of the innovation space in Kenya, there are enough innovators, software developers, as well as venture capitalists that are looking to fund local startups that are engaged in this space, and Kenya is looked at now as the gateway to East Africa, and no one will even argue Africa when it comes to matters of innovation, so we really need the government and we need support from policymakers to make this industry a viable one in this country, said Felix Macharia, the CEO of Kotani Pay.

As a champion of digital innovation, the Nairobi County government is setting up comprehensive strategies to ensure that people have the knowledge and understanding they need to navigate the complex landscape of blockchain, AI, and cryptocurrency effectively.

“Nairobi city being like the hub pretty much the hub of Africa in the technology space, we are having such events as the innovator Nairobi week to get our ideas together, and you know there’s a lot of human resources in the technology, technological setup, that is not being harnessed properly and we’re not taking advantage of it.

So, just like yesterday, we had a group of youth, a hackathon on different people bringing their ideas on how we can help improve our services to Nairobi and making it easier for end-to-end from the government to the actual citizen,” said Michael Gumo, the executive committee member for innovation and digital economy in Nairobi City County.

While blockchain and cryptocurrency hold immense promise for Kenya in areas such as financial inclusion, supply chain management, and government transparency, several challenges must be addressed to unlock their full potential.

Overcoming regulatory uncertainty, securing government support, addressing infrastructure challenges, mitigating resistance from traditional sectors, and addressing security concerns are crucial steps in fostering the adoption and development of blockchain technology in Kenya.

Collaborative efforts between the government, industry stakeholders, and the blockchain community are essential to overcoming these challenges and realizing the transformative potential of blockchain technology in Kenya’s economy and society.