Kenya has overtaken Ethiopia to become Africa's third-largest cryptocurrency economy, after recording KSh740 billion (5.7 billion US dollars) in digital currency transactions in the year to June 2026, according to blockchain analytics firm Chainalysis.

The latest figures represent a 38 per cent increase from KSh505 billion (3.89 billion dollars) recorded in the preceding 12-month period. The growth was driven by the growing use of digital assets for cross-border payments, remittances and business transactions.

Kenya behind South Africa and Nigeria

South Africa and Nigeria retained the top two positions in Africa, recording cryptocurrency activity worth 39.3 billion dollars and 38.1 billion dollars respectively. Ethiopia, which previously ranked ahead of Kenya, recorded an 8 per cent decline to 3.7 billion dollars during the review period.

In its October 2026 regional analysis, Chainalysis observed that Sub-Saharan Africa's cryptocurrency economy grew by 13.4 per cent to 101 billion dollars, making it the fastest-growing cryptocurrency region in the world.

Stablecoins drive the growth

Stablecoins dominate Kenya's cryptocurrency activity. These are digital currencies whose value is pegged to relatively stable assets, particularly the US dollar. Bitcoin, the world's best-known cryptocurrency, accounted for just 2 per cent of transactions in Kenya, compared with 92 per cent in Nigeria, 59 per cent in Ghana and 22 per cent in South Africa.

Kenyans increasingly use stablecoins to pay for goods and services, settle cross-border transactions, send remittances and hedge against depreciation of the shilling. Chainalysis said stablecoins provide an alternative for people and businesses seeking access to foreign currency without opening dollar-denominated bank accounts. In East Africa, Kenya remained the leading cryptocurrency market, followed by Uganda, with 780 million dollars in activity, and Rwanda, with 441 million dollars. Read the reports from People Daily and Vivid Voice News.