Better Regulatory Framework Vital to Unlock Blockchain’s Potential, Experts Say

Kenya’s blockchain ecosystem is expanding rapidly, but industry leaders argue that its full potential will only be realized through a stronger and clearer regulatory framework. Speaking at the Kenya Blockchain & Crypto Conference 2024, experts emphasized that while adoption is growing across sectors, the absence of well-defined rules continues to limit investor confidence and long-term innovation. They noted that existing gaps around licensing, exchange operations, initial coin offerings, and consumer protection expose both users and developers to unnecessary risks. For Kenya to cement itself as a regional hub for digital assets, stakeholders believe the government must establish predictable guidelines that support responsible growth rather than stifle it.
A robust regulatory environment, they argued, would not just safeguard the market but also accelerate the practical use of blockchain technology across the country’s innovation landscape. Kenya’s Silicon Savannah already hosts developers experimenting with decentralized solutions in identity verification, supply-chain traceability, healthcare records, agricultural markets, and land administration. Fintech leaders such as Kotani Pay highlighted how cryptocurrencies and stablecoin platforms offer a safety net for unbanked and underbanked populations, especially in rural areas where traditional banking infrastructure remains limited. With streamlined regulations, these solutions could scale more efficiently, boosting financial inclusion and enhancing the transparency of cross-border transactions.
However, experts cautioned that Kenya’s progress depends on striking the right balance between oversight and innovation. Heavy-handed compliance requirements could discourage startups, while weak enforcement might fuel fraud and cybersecurity threats. Public awareness also remains low, meaning many consumers still misunderstand the risks and opportunities associated with blockchain. Industry specialists stressed that Kenya’s path forward requires rules that strengthen accountability but still leave room for experimentation. If the country adopts a forward-looking approach, stakeholders believe it could position itself among Africa’s leaders in blockchain development and unlock new avenues of economic growth powered by decentralized technology.