Bitcoin Offers Banking Alternative in Nairobi’s Largest Slum

• Africa is catching up fast to the Web3 economy, and Kenya, which is considered a third-world country, is first in line.
• Bitcoin is beginning to take hold in Nairobi’s Kibera slum, thanks to Afribit.

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In Nairobi’s sprawling Kibera slum, one of Africa’s most densely populated and underserved urban settlements, an unconventional solution is taking root. Bitcoin (BTC), a decentralized digital currency, is offering residents a fresh path to financial inclusion where traditional banking simply doesn’t reach.

The work in Kibera is being driven by AfriBit Africa, a Nairobi-based startup that’s trying to open up financial access where banks rarely reach. The project, launched in early 2022 by former community organizer Ronnie Mdawida and his team, isn’t framed as high finance but as a grassroots experiment, using Bitcoin as a practical tool for everyday empowerment.

In his BBC interview, Ronnie Mdawida explained that for Bitcoin to work in Kibera, it couldn’t just be about individuals holding it; merchants also had to be willing to accept it as payment. “For the merchants to exist, we also needed people who are willing to accept Bitcoin as a means of payment,” he said.

To him, Bitcoin isn’t some foreign idea parachuted into the community; it’s a system that makes sense in the daily lives of Kibera’s residents.

Ruth, a local shopkeeper, shared her experience:

Why Bitcoin and Why Kibera?

What makes Bitcoin so attractive in Kibera is how simple it is to use. All you need is a smartphone and a digital wallet, no paperwork, no official ID, no bank account. That’s a big deal in a community where many people are locked out of traditional banking and even mobile-money services like M-PESA.

M-PESA itself has become expensive, with fees that climb higher as transfers get larger. By contrast, Bitcoin transactions, especially over the Lightning Network, are almost free. It’s also safer. In a place where carrying cash can make you a target, keeping money in a digital wallet reduces the risk of theft.

A few garbage collectors in Kibera say they’ve put as much as 70–80% of their savings into BTC, hoping the value will rise over time.

The progress in Kibera is promising, but experts warn that Bitcoin’s wild price swings can be especially risky for low-income users who don’t have much room to absorb losses. On top of that, everyday obstacles like unreliable internet, frequent power cuts, and the high cost of quality smartphones limit how far these programs can reach.

There’s also the question of regulation. The upcoming Virtual Asset Service Providers (VASP) Bill, 2025, could prove to be a turning point. It’s heavily focused on anti-money laundering (AML) and counter-terrorism financing (CTF), part of Kenya’s effort to get off the Financial Action Task Force’s “grey list.”

But some experts, like Rosellyn Wanjiru, a Nairobi-based blockchain Analyst, worry that the government might be getting the balance wrong. “If taxation and layers of compliance are put ahead of growth,” she cautions,

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