When it comes to crypto adoption in Africa, the story is no longer “if” but “when” – and that when is happening now in Nairobi and Lagos. These tech hubs are buzzing with startups and developers who feel the urgency: they see inflation, slow banks and pricey remittances every day, and they’re coding their way to solutions.
According to Chainalysis, Nigeria is ranked #2 globally in grassroots crypto adoption, while Kenya has seen a surge in usage, even doubling its crypto transaction volume in 2024 . A 2022 UN report found nearly 10% of Kenyans already owned crypto , and Nigeria’s on-chain volume between July 2022–June 2023 was over ₦56.5 trillion . In short, Africa’s next tech giants are growing out of real demand.
The New Frontier: Crypto Adoption in Nigeria and Kenya
Africa is fast becoming a crypto frontier. In this race, Nairobi and Lagos are in the lead. Chainalysis’s 2023 Global Adoption Index shows Nigeria trailing only India worldwide, and even beating Russia, Brazil and Japan. Kenya is also ranked among the top 30 countries globally for crypto usage. These figures aren’t a fluke: Nigerians are famously crypto-aware, “nearly all” have heard of Bitcoin, and Kenyans are catching up in a big way.
- Nigeria #2 globally: Chainalysis ranks Nigeria second in crypto adoption, and a recent report highlights over N56.5 trillion ($124B) in digital-asset transactions in just one year . Stablecoins now make up about 43% of Sub-Saharan Africa’s crypto volume , reflecting the search for dollar-pegged value in the face of Naira volatility.
- Kenya’s leap: TRM Labs reports Kenya’s crypto use doubled in 2024 . Almost half of Kenyan adults are unbanked, so mobile money (remember M-Pesa?) and crypto naturally blend. By 2022, an estimated 10% of Kenyans held crypto.
These stats illustrate a simple fact: when local currencies wobble or banks shut you out, everyday Africans turn to crypto for solutions. Across the continent, Bitcoin and stablecoins are being used for business payments, saving, and smaller retail transfers. In other words, “crypto adoption Africa” isn’t hype – it’s happening in living rooms and phone screens from Lagos to Kisumu, and it’s real.
From Regulation to Empowerment: Building a Friendlier Landscape
Gone are the days of outright bans and warnings – both Kenya and Nigeria are moving toward pragmatic crypto policies. In Kenya, regulators have shifted from “just say no” to active exploration.
A 2018 taskforce started investigating blockchain and AI , and by 2023 Kenya completed a money-laundering risk assessment for virtual assets. By late 2024, the Treasury released draft rules for virtual assets, proposing licensing for exchanges and AML safeguards. As Baker McKenzie notes, Kenya’s goal is now “to become a leader in Africa of the digital financial revolution”.
Meanwhile in Nigeria, after years of mixed signals, new laws are paving the way. In early 2025 the government passed a bill that, for the first time, defines and legitimizes crypto assets, recognising them in law as “digital representations of value” used for payment or investment.
New regulations will protect platforms and traders, effectively giving exchanges legal backing. Even the Securities Exchange Commission has introduced an “Accelerated Regulation Incubation Program” (ARIP) requiring virtual-asset service providers (VASPs) to register and be vetted. These steps, from Nigeria’s Digital Economy Act to Kenya’s crypto task force, signal a startup-friendly swing.
In short, African policymakers are asking “how do we regulate crypto” more than “should we ban it?” The result is a clearer path for innovators, not dead ends.
Homegrown Heroes: Nairobi and Lagos Startups
On the ground, Africa’s builders are seizing the moment. From cap table platforms to stablecoin wallets, local startups are tailoring Web3 tech to African realities:
Raise (Nairobi):
A startup simplifying fundraising and cap table management for African companies. After making its debut at Africa Tech Summit, Raise won backing from Binance Labs and even US platform Carta . It’s an example of Nairobi talent linking into global crypto and VC networks.
Fonbnk (Nairobi):
This fintech bridges Kenyan mobile money and crypto. Fonbnk “pairs prepaid mobile payments with stablecoins to eliminate fraud, reduce FX costs, and deliver real-time, chargeback-free global settlements,” according to its website . In practice, Fonbnk lets users swap airtime or M-Pesa balance for USD-pegged coins. The result? Kenyans without bank accounts can send value internationally through crypto, tapping into Africa’s biggest mobile money market.
Finna Protocol (Lagos):
Built by former FTX Nigeria and Kylin officers, Finna is rolling out a stablecoin-backed lending and remittance network. It aims to combat Nigeria’s runaway inflation by letting people borrow in dollars (via stablecoins) at low rates. Nigerian media explain that Finna “builds a multi-utility ecosystem for stablecoins in payments, collateralization, and remittances ” , essentially making USD-denominated digital finance part of daily life.
Kotani Pay (Nairobi):
A remittance fintech connecting crypto to M-Pesa. With a recent $2M pre-seed round, Kotani uses blockchain to cut fees for African workers sending money home. By integrating stablecoins with local networks (even supporting USSD on feature phones), Kotani bridges wallets and real cash. In fact, Kotani’s founders highlight one impact: a $5 transfer from the US to Kenya that would cost 111% of its value with a normal money transfer, can go through at just 2% fee when routed via stablecoins.
Web3Bridge (Nigeria-wide):
Not a product startup but a bootcamp, Web3Bridge is building the builders. This Lagos-based training platform runs a 16-week blockchain dev bootcamp to “build sustainable Web3 economy in Africa” . By equipping hundreds of African students with Solidity, Ethereum and crypto skills, Web3Bridge is growing the developer ecosystem itself.
Kotani Pay’s Nairobi team (above) exemplifies Africa’s grassroots Web3 boom. These founders and engineers are literally wearing their mission: they’re building crypto remittance rails (Kotani T-shirts and all).
These names are just a sample. From Nairobi’s Melanin Kapital (tokenized carbon credits for climate impact) to Lagos’s PayFaster (crypto payroll) to Accra’s Yellow Card exchange, Web3 startups in Africa are springing up everywhere.
A new report finds 80+ Nigerian Web3 startups have already raised $130M – which is remarkable for an ecosystem that’s only just maturing. Nigeria even churned 4% of all new global Web3 developers in 2024. Meanwhile Kenya’s fast-growing venture scene (the country raised $638M in 2024 – 88% of it for Web3!) means Nairobi is no backwater.
In both cities, innovation vibes are high: co-working spaces fill up with hackathons and code-sprints, and casual meetups (often served with jollof rice or mandazi) turn into impromptu brainstorms on DeFi.
Real-World Web3: Payments, Remittances, Identity, Lending
What are Africans actually doing with blockchain? The use cases hit home hard:
- Cross-Border Remittances: Africa relies on migrant workers and diaspora, sending home about $55 billion per year . Traditional remittance fees are sky-high (often 10–20% per transfer). Web3 innovators are slashing that. Kotani Pay’s stablecoin remittance model is one example, as noted above (2% vs 10% fee) . Other platforms like Yellow Card and Binance P2P similarly enable Nigerians and Kenyans abroad to buy crypto and send it home cheaply. As one Yellow Card exec put it, “People don’t care about crypto” – they care about saving family from extortionate remittance charges. Stablecoins have become a dollar-proxy for traders and small importers, letting them pay overseas suppliers directly without chasing physical USD.
- Mobile Payments & Digital Cash: In Africa’s “mobile-first” economies, even those without bank accounts use phones to pay for everything. Crypto solutions plug into this. For example, Fonbnk and Kotani use existing mobile rails (like Kenya’s ubiquitous M-Pesa) to on-ramp and off-ramp stablecoins. This means a shopkeeper can accept a digital USD payment in a wallet, and instantly cash out in local currency via mobile money. Crucially, many systems work via SMS/USSD so you don’t even need an internet smartphone. The result is that blockchain wallets are becoming almost as easy to use as sending airtime to a friend – just faster and cheaper.
- Lending & Finance: With high inflation in Naira and Kenyan Shilling, ordinary people want savings and loans in dollars. This gap is closing with crypto DeFi. Pezesha (Kenya) issues microloans via Celo stablecoins, matching SMEs to global investors. Finna Protocol (Nigeria) has just launched “stablecoin-backed fiat loans,” letting users collateralize crypto for naira loans, hedging inflation. Meanwhile, farmers and traders are exploring blockchain-based cooperatives and credit records (some pilot projects tie identity to creditworthiness on-chain), making small loans faster than any bank could.
- Identity & Inclusion: Across Africa, millions lack formal ID and banking. Some startups are experimenting with blockchain identity solutions and “Web3 wallets for everyone.” For instance, projects like Nigeria’s Myna Wallet (and others in East Africa) tie phone SIMs or digital IDs to crypto wallets, so even informal entrepreneurs can build credit. While still early-stage, this hints at a future where your digital identity and financial life live in one (crypto) app, unlocking mobile banking for the 1.7 billion underbanked people in emerging markets.
These use cases aren’t sci-fi – they’re happening today. Mercy Corps hires Kenyan gig workers paid in dollar stablecoins, who then convert to shillings with virtually no fee. Street merchants in Lagos are testing apps that let customers pay in crypto (and get instant naira). Even Nairobi’s matatu (minibus) drivers are piloting crypto payrolls. In short, everyday finance is going Web3 on the ground.
The Future is Being Built Here
It’s easy to romanticize “crypto in Africa” as just a buzzword, but the reality is concrete and local. From Nairobi’s bustling innovation hubs to Lagos’s tech parks, a new generation of Africans is building for themselves. They work late nights on laptops under 3G dongles, and meet for chai-based hackathons. They’re solving problems like remittance fees, volatile currencies, and financial exclusion with code and creative deal-making. In doing so, they’re teaching the world a lesson: sometimes the best frontier markets for blockchain are the ones that need it most.
To the African builders reading this: we see you. The hustle of Lagos and the jua kali (outdoor work) spirit of Nairobi are alive in every smart contract you ship. The world’s old narratives said Africa must catch up – but as we’ve seen, Nigeria and Kenya are leapfrogging straight into Web3 leadership. Across the continent, “Web3 startups Africa” is trending from tech press to reality. Governments are starting to back you with new laws, investors are starting to look your way, and customers are already adopting digital money solutions by the millions. So keep coding, keep innovating, and keep that famous African energy blazing. The future is being built here – by the very people who live with the problems, and are designing the solutions.
Whether you’re a dev in Mombasa or a founder in Oshodi, remember: the giant’s footprints you leave will be the map for others. Nairobi and Lagos aren’t just consuming the narrative – they’re writing it. The rest of the world should watch; Africa’s next crypto giants are being born under the equator’s sun, and they’re aiming high.
