Kenyan SMEs to accept crypto as fintechs eyes mass adoption

Kenyan customers may soon be able to buy goods and services from their local duka using cryptocurrency as fintechs look to ride on Kenya’s key economic system.

The payment landscape in the country has over the years been dominated by cash payments and Mpesa, especially with the small retailers who serve 70 per cent of Kenya’s fast-moving goods.

Kenyan enterprises have been wary of adopting new payment channels for fear of being tracked by tax authorities.

For instance, in 2024, rising transaction charges and increased scrutiny by government authorities, including the Kenya Revenue Authority (KRA), prompted more merchants to shift to cash.

According to Financial Sector Deepening Kenya, cash accounts for 80 per cent of daily transactions in Kenya.

However, a new deal between global issuer of stablecoins, Tether, and Kenyan-based fintech Nuzo is now eyeing bringing crypto payment channels to this retail space.

According to Tether Africa spokesperson George Mosomi, the collaboration represents a step towards financial inclusion and exposes the small retailers to becoming a part of what’s happening globally.

“By leveraging a cryptocurrency designed to provide a stable price point at all times (USDT) and Nuzo’s innovative approach, we’re empowering small businesses to participate in the global digital economy like never before,” said Mosomi.

Kenya has in recent times emerged as a leader in cryptocurrency adoption in Africa, with the number of users projected to reach 733,300 by the end of 2025.

Mobile-based platforms and peer-to-peer trading have driven this expansion, particularly among young, urban Kenyans seeking financial inclusion and investment opportunities.

However, despite low digitisation and lack of proper ledger keeping for the shops, recent trends show that there is a rising number of these SMEs adopting digital payments.

Visa, in its new report ‘Value of Acceptance: Understanding the Digital Payment Landscape in Kenya,’ says there is a thriving digital payments ecosystem in Kenya, with 84 per cent of surveyed SMEs recognizing that investing in payments technologies is crucial to drive business growth.

 This positive outlook is reinforced by the fact that 68 per cent of SMEs currently accepting digital payments plan to invest further in payment technologies, including contactless solutions.

Nuzo founder and CEO Charles Nichols says that the ease of use of the platform is designed to mirror popular mobile money apps like Kenya’s M-PESA, with simple six-digit Nuzo till numbers used for completing payments.

He notes that this grassroots approach has helped the fintech penetrate markets where traditional financial services often fall short, offering a seamless bridge between digital currencies and everyday commerce. 

 “Our goal is to make cryptocurrency as simple and accessible as mobile money. With Tether’s support, we can bring the benefits of blockchain technology—lower costs, faster transactions, and greater security—to millions of entrepreneurs across the continent,” said Nichols.

Visa says that currently, 56 per cent of surveyed cash-only SMEs report losing business due to customers not carrying cash, while 91 per cent facing cash-related security concerns such as robbery and employee embezzlement.

Combined, these challenges highlight the potential of secure, convenient, and transparent digital payments.

Nuzo, through its Wallet app, currently enables over 200,000 businesses and consumers in Kenya, Tanzania, Uganda, and Nigeria to pay, save, and earn with cryptocurrency.