In Kenya’s Kibera slum, bitcoin is enabling financial inclusion—yet raises concerns over risk, volatility, and overexposure.
In Soweto West, a neighborhood in Kenya’s Kibera slum, bitcoin is quietly becoming a medium of exchange. Around 200 residents now use BTC, including vegetable vendors and motorcycle taxis, thanks to an initiative by AfriBit Africa, a local fintech.
The effort began in early 2022 with crypto-denominated payments to garbage collectors, introducing bitcoin as a banking alternative in one of Africa’s most underbanked areas.
“They don’t need documentation to have a bank account … that gives them the foundation for financial freedom,” said AfriBit Africa co-founder Ronnie Mdawida.
Community Uptake & Benefits
Payments: BTC is used by vendors like Dotea Anyim, who says 10% of her customers pay in bitcoin.
Savings: Users like Damiano Magak and Onesmus Many say bitcoin is safer than cash and cheaper than M-PESA.
Low Fees: With Lightning Network, fees are zero through AfriBit’s chosen platform.
Trust in Growth: Residents are bullish—Magak and Many hold 70–80% of their wealth in BTC.
The Risks of Volatility
Experts like fintech leader Ali Hussein Kassim warn of overexposure:
“You are exposing a vulnerable community to an ecosystem they can’t afford to play in.”
Lack of Regulation: Bitcoin lacks consumer protections.
Volatility: Sharp price drops could wipe out entire savings.
Bitcoin Education as a Buffer
AfriBit says it has invested in financial literacy and crypto courses to prepare the community. Mdawida argues bitcoin’s unregulated nature is a feature, not a flaw, empowering those excluded from formal systems.
Despite legal challenges in Kenya and failed national crypto experiments in El Salvador and Central African Republic, Soweto West’s bitcoin community is growing cautiously—and hopefully.
“Whenever it fluctuates, I know at the end of the day it will just rise,” said Magak.
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