Cryptocurrency exchange giant Coinbase is making strategic inroads into Kenya, targeting the country’s vibrant technology and payments ecosystem.
By supporting local developers and exploring partnerships with M-Pesa, Kenya’s leading mobile money service, Coinbase aims to solidify its presence despite the country’s uncertain regulatory landscape.
A delegation from Coinbase, valued at approximately $73 billion on the New York Stock Exchange, recently visited Nairobi. During their trip, they hosted developer-focused events and met with M-Pesa representatives to discuss integrating blockchain technology into Kenya’s mobile payments network.
Kenya, known for its financial technology innovation, has become a key focus for Coinbase’s Base platform, a blockchain network that enables developers to build decentralized applications, including payment tools.
Base is built on Ethereum, the world’s second-largest cryptocurrency network. Blockchain networks like Base offer decentralized systems that facilitate cheaper, more secure, and transparent transactions compared to traditional payment networks. One of their standout applications is enabling cost-effective cross-border transactions using cryptocurrency.
“The adoption of crypto is happening in East Africa and across the African continent faster than anywhere else globally,” said Jesse Pollak, Base’s creator and a senior executive at Coinbase. “Kenya and Nigeria are leading this wave of innovation and excitement.”
Coinbase hosted an event in Nairobi’s Westlands district, attracting hundreds of developers building projects on Base. Pollak announced Coinbase’s support for a Kenya shilling stablecoin, a cryptocurrency pegged to the local currency, aimed at enhancing financial accessibility.
The company is also collaborating with Kenyan universities to introduce blockchain technology into academic curriculums, fostering a skilled workforce for the burgeoning crypto ecosystem.
“The Nairobi developer community is growing, but we need more support to catch up with markets like Nigeria,” said Tiffany Gathoni, a software developer who attended the event. “Government backing or funding for startups could make a significant difference.”
Coinbase has been serving Kenyan users through its international platforms since 2019. However, its limited on-the-ground operations were scaled back in 2022 and 2023 due to regulatory uncertainties. The renewed push, including direct support for local developers, signals a commitment to establishing a deeper footprint in Kenya.
Discussions with M-Pesa could pave the way for incorporating blockchain technology into Kenya’s mobile money network, potentially creating a hybrid system that leverages crypto for enhanced payment solutions.
As Coinbase strengthens its presence in Kenya, it aims to position itself as a catalyst for financial inclusion and blockchain adoption in one of Africa’s most dynamic fintech hubs. However, the success of this initiative may hinge on navigating the country’s evolving regulatory environment and fostering government collaboration.