Kenyans turn to digital currency for faster, cheaper cross-border transfers

For many Kenyans, sending money across borders has always been expensive and slow. With high fees and unpredictable exchange rates, it’s a struggle to get the best deal.

As the value of the Kenyan shilling weakens, many are looking for better, more reliable financial solutions.

One option gaining traction is stablecoins, digital currencies like USD Tether (USDT), which are pegged to the value of the US dollar.

Unlike cryptocurrencies which can be volatile, USDT offers a stable and cost-effective solution for sending money. According to recent studies, USDT accounts for nearly half of all stablecoin transactions in Kenya, reflecting its growing popularity.

“USDT is not just a cryptocurrency; it’s a lifeline to the global economy,” said Kibiru Muthaka, CEO of TapSwap Exchange.

“It offers stability and lower costs compared to traditional remittance methods, which are up to 60 per cent more expensive.”

The rise of USDT comes at a crucial time. In 2023, Kenya faced a severe shortage of US dollars, which pushed businesses and individuals to explore alternatives. USDT provided a reliable and fast way to send and receive money when traditional options were limited.

However, accessing USDT is not without its challenges. Many Kenyans rely on informal peer-to-peer (P2P) networks, which can expose users to scams.

 But change is on the horizon. The Kenyan government is set to introduce the Virtual Asset Service Providers (VASPs) bill in 2025, which promises to bring more regulation and protection to the growing digital currency space.

TapSwap Exchange is already working to make USDT safer and easier to use.

The platform supports over 20 cryptocurrencies and will soon allow users to purchase USDT directly through mobile money, bank cards, and other payment methods.

For Kenya’s young, digital-savvy population, USDT represents more than just an alternative to traditional banking—it’s a gateway to the global economy, offering a faster, cheaper, and more secure way to manage money.