In a bold and unconventional financial experiment, residents of Kibera—Africa’s largest informal settlement—are diving headfirst into the world of cryptocurrency. With no banks and few financial services, a growing number of locals are turning to Bitcoin as a lifeline, sparking both hope and heated debate.
Highlights
- Over 200 Kibera residents now use Bitcoin for everyday transactions.
- A fintech initiative called Afribit Africa is behind the rollout.
- Locals earn Bitcoin through trash collection and community service.
- The project operates via the Lightning Network to bypass high fees.
- Experts warn of volatility and lack of regulation as key risks.
Main Story
In the heart of Kibera, specifically the Soweto West area, a grassroots movement is revolutionizing how locals interact with money. A pilot project by Afribit Africa has introduced Bitcoin to around 200 residents, many of whom are unbanked and previously excluded from Kenya’s formal financial systems.
Through innovative programs like “Sats-for-Waste,” youth collect garbage and are paid in small amounts of Bitcoin—called satoshis. These earnings can then be used to buy basic goods from local vendors who accept crypto, creating a circular, digital economy.
Unlike M-PESA, Kenya’s dominant mobile money service which charges transaction fees, Bitcoin payments via the Lightning Network are virtually free and instant. This makes it an attractive option for day-to-day use, especially for low-income earners who rely on every shilling.
Afribit’s approach doesn’t require formal ID or a bank account, making it especially accessible in a community where these are often barriers to entry.
Despite its promise, the project isn’t without critics. Many residents now hold up to 80% of their earnings in Bitcoin, exposing them to massive price swings. And with the Central Bank of Kenya maintaining that Bitcoin is not legal tender, there’s a looming cloud of uncertainty over its long-term viability.
There’s also the issue of scalability—whether this can grow beyond a few hundred participants and truly transform the broader Kibera economy remains to be seen.
To support the shift, Afribit runs crypto education programs aimed at teaching locals how to safely use and store their Bitcoin. For now, enthusiasm seems high, with some traders already adopting Bitcoin as a tool for financial planning.
But as this digital revolution unfolds in Kenya’s largest informal settlement, the world is watching closely to see whether Bitcoin can be a force for inclusion—or yet another risk in a volatile system.
Is Bitcoin the key to financial freedom for marginalized communities—or just a high-stakes gamble? The answer might be unfolding in Kibera.
