Bitcoin ATMs in Kenya Expand as New Crypto Law Takes Effect

TLDR:

• Bitcoin ATMs in Kenya now operate in major malls, offering direct cash-to-Bitcoin transactions.
• Virtual Assets Service Providers Act empowers CBK and CMA to license and supervise VASPs.
• No VASPs have been licensed yet; operating without approval remains illegal in Kenya.
• Bitcoin adoption in Kibera predates ATMs, with small grants and merchant payments using crypto.

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Bitcoin ATMs have begun appearing in prominent Nairobi malls, creating fresh public access points for cryptocurrency. Their launch aligns with Kenya’s new Virtual Assets Service Providers Act, which became effective on 4 November. 

The machines allow direct cash-to-Bitcoin transactions in high-traffic retail locations. Regulators warn that no provider has been licensed yet under the law.

Bitcoin ATMs in Kenya Reach Retail Malls

The new orange “Bankless Bitcoin” kiosks currently sit in malls at Two Rivers, Westlands, and locations along Ngong Road. 

They operate beside traditional bank ATMs, offering shoppers instant buy-and-sell features for Bitcoin. Their presence marks a shift from niche crypto activity to visible retail access. Crowds in these centres create a natural testing ground for everyday transactions.

The appearance of these ATMs comes only days after the Virtual Assets Service Providers Act, 2025, took effect. According to a joint notice from the Central Bank of Kenya and the Capital Markets Authority, the law establishes a licensing and supervisory framework for all VASPs operating in or from Kenya. 

The Act also places service providers under strict anti-money-laundering and counter-terrorism-financing rules. Regulators say licensing will begin after the National Treasury publishes detailed regulations.

Officials caution that no VASP has been approved so far. Any operator claiming licensing does so illegally, according to reports. This reminder underscores the gap between public interest in crypto platforms and the formal process required for legal operation. The new machines highlight that tension as the regulatory system prepares to take shape.

While the retail installations attract attention, Bitcoin activity has long been visible in lower-income areas. In Kibera’s Soweto West, Afrobit Africa introduced Bitcoin-denominated grants in 2022 for garbage collectors. 

The project pays workers small amounts of Bitcoin after community cleanups, replacing cash transfers. About $10,000 has circulated through the initiative, based on figures shared by the organization.

The experience has introduced digital currency to residents without formal banking options. Some merchants and riders now accept Bitcoin using the Lightning Network, enabling quick and inexpensive payments. 

Users report switching to BTC when M-PESA fees or delays make transactions difficult. These early adopters formed a grassroots base long before the first mall installations appeared.

From Informal Settlements to Regulated Markets

Kenya’s new digital asset law aims to bridge informal experimentation with structured oversight. The Act assigns joint regulatory authority to CBK and CMA, placing VASPs under a framework designed to reduce financial crime risks. 

It also outlines categories such as exchanges and custodial wallets that require approval before operating. These provisions position Kenya for a more organized crypto landscape.

The contrast between Kibera’s street-level adoption and Nairobi’s mall-based Bitcoin ATMs shows the wide range of local use cases. 

Bitcoin moves between informal savings, small business payments, and new retail machines attracting mainstream shoppers. Public visibility is rising even as regulation tightens. Kenya now stands at a point where grassroots usage meets formal governance.

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