Bitcoin ATMs are beginning to appear in Nairobi’s major shopping malls, marking a visible expansion of Kenya’s informal cryptocurrency ecosystem. Branded machines such as Bankless Bitcoin now sit alongside traditional banking kiosks, allowing locals to convert cash into crypto. This development reflects growing interest in digital assets among Kenyans, especially in areas where conventional banking remains limited. For many, including residents of lower-income neighborhoods like Kibera, Bitcoin offers financial inclusion and a way to store value without documentation, providing a sense of security and independence that traditional banking cannot always deliver.
These ATMs, however, operate in a regulatory gray area. Kenya’s Virtual Assets Service Providers (VASP) Act of 2025 recently introduced licensing requirements for crypto operators, but no providers have yet received approval. The Central Bank of Kenya (CBK) oversees payment and custody functions, while the Capital Markets Authority (CMA) regulates trading and investment. Both regulators have issued warnings that any VASP operating without a license is doing so illegally. Despite the law, implementing the required regulations for licensing has not yet occurred, creating a mismatch between visible crypto infrastructure and formal compliance.
The arrival of Bitcoin ATMs highlights the tension between innovation and regulation in Kenya’s crypto market. While these machines could drive adoption and accessibility, regulators face the challenge of enforcing compliance while supporting innovation. The situation underscores the importance of clear rules and effective oversight to ensure that crypto services operate safely and legally. For now, Bitcoin ATMs act as both a catalyst for digital currency growth and a test of Kenya’s ability to integrate cryptocurrency into its financial system responsibly.