TL;DR
- Thanks to new regulations, Bitcoin is arriving in Kenyan shopping malls with ATMs that allow buying and selling BTC with cash.
- The new law takes effect on November 4 and requires exchanges and custodians to obtain authorization from the Central Bank and the CMA.
- The government is still finalizing complementary regulations, meaning no company can legally operate under the new framework yet.
Bitcoin has arrived in Nairobi shopping malls just days before Kenya’s first comprehensive crypto law officially comes into force. The bright orange Bankless Bitcoin ATMs appeared in Two Rivers Mall, Westlands, and Ngong Road, operating in full public view and installed alongside traditional banking ATMs.
These machines allow users to buy and sell BTC with cash, but no company has yet received formal authorization to operate under the new legal framework. The deployment of these ATMs reflects a transition period as the sector moves from largely unregulated activity to a state-supervised regime with licensing requirements.
The Virtual Assets Service Providers Act was approved in October and took effect on November 4. It introduces, for the first time, a regulatory structure for exchanges, custodial wallets, and crypto platforms in Kenya, including obligations related to anti–money laundering and counter–terrorism financing.
Kenya Is Finalizing the Definitive Rules
The Central Bank of Kenya and the Capital Markets Authority will act as joint regulators and will be responsible for licensing providers operating in or from the country. However, the National Treasury is still preparing the complementary regulations required to implement the law, meaning no licenses will be issued until that process is complete. Authorities have warned that any company claiming to operate with official approval is doing so illegally.
While mall-based ATMs represent the first visible presence in formal commerce, Bitcoin has circulated for years in low-income neighborhoods. In Soweto West, inside Kibera, fintech Afrobit Africa began in 2022 paying waste collectors in BTC instead of shillings because many lack ID, a bank account, or access to mobile money.
The Economic Impact of Bitcoin
The company estimates it has distributed around $10,000 in payments and that roughly 200 people in the area use BTC. Several shops and drivers accept Lightning payments, with transactions costing virtually nothing. Some users prefer Bitcoin over M-PESA due to higher fees and occasional network delays on the mobile operator’s system.
Kenya is attempting to bring order to a market that operated for years in a regulatory vacuum. The government aims to protect the financial system, establish clear rules, and enable the industry to grow under transparent and secure standards.
