As the cost of living in Kenya continues to rise and the shilling remains under pressure, more households are turning to stablecoins as a way to protect their savings and manage everyday financial transactions.
A report by crypto exchange firm Bybit shows that repeated currency depreciation and high import costs have eroded purchasing power, making it increasingly difficult for households and small businesses to preserve value in local currency.
In response, digital dollar–pegged currencies such as USDT, USDC and DAI are gaining popularity as alternative stores of value and payment tools.
Freelancers and online workers in Kenya are among the fastest adopters, with many preferring to receive cross-border payments in stablecoins due to faster settlement times and lower fees compared to traditional remittance platforms.
Small traders and importers are also increasingly using stablecoins to manage international payments and hedge against exchange rate volatility, the report notes.
Unlike traditional banking channels, stablecoins allow users to access funds around the clock, move money across borders quickly and avoid sudden foreign exchange restrictions.
For some Kenyans, they are increasingly functioning as informal digital savings accounts, offering exposure to the US dollar without the need for foreign bank accounts.
Kenya’s experience mirrors a wider African trend. In countries such as Nigeria and Ghana, high inflation has pushed individuals to seek alternatives to local currencies, while in Zimbabwe and Ethiopia, stablecoins are being used to cope with currency instability and tight foreign exchange controls.
The report notes that USDT currently dominates usage across the region due to its liquidity and relatively low transaction costs, while USDC is gaining traction among businesses seeking greater transparency. More experienced users are also exploring decentralised stablecoins such as DAI.
Crypto exchanges operating in Kenya, including Bybit, have expanded access to stablecoins through peer-to-peer trading platforms that allow users to buy and sell digital dollars directly with one another.
These platforms have significantly lowered entry barriers, particularly for individuals without access to international banking services.
According to the report, stablecoin adoption in Kenya is largely driven by necessity rather than speculation.
“This is about protecting school fees, rent and business capital from losing value,” it notes.
However, Bybit cautions that stablecoins remain part of the broader crypto ecosystem and still carry risks, advising Kenyans to conduct due diligence and only commit funds they can afford to lose, even as digital assets play a growing role in helping households cope with economic uncertainty.
