Kenya Overtakes Ethiopia to Become Africa’s 3rd-Largest Crypto Economy

Hello and welcome to the Money News Roundup. Today, we cover Kenya overtaking Ethiopia among Africa’s top crypto economies and the latest projections for the country’s economic growth.

Kenya Overtakes Ethiopia as Crypto Transactions Hit Record Ksh740 Billion

Kenyans transacted a record Ksh740 billion (USD5.7 billion) in cryptocurrencies in the year to June 2026, representing a 38% increase from Ksh505 billion (USD3.89 billion), according to global crypto analytics firm Chainalysis.

As reported by the Business Daily, the growth saw Kenya overtake Ethiopia to become Africa’s third-largest cryptocurrency market, behind South Africa and Nigeria, as digital currencies gain popularity for investments, trade and cross-border payments.

Stablecoins, which are pegged to relatively stable assets such as the US dollar, account for a significant share of Kenya’s crypto transactions.

Traders increasingly use them to pay foreign suppliers, while diaspora remittances and multinational companies are also driving adoption.

Ethiopia recorded Ksh480 billion (US$3.7 billion) in transactions, compared to Ksh5.1 trillion (US$39.3 billion) in South Africa and Ksh4.9 trillion (US$38.1 billion) in Nigeria.

Other African markets included Ghana (Ksh662.8 billion), Ethiopia (Ksh480.85 billion), Senegal (Ksh298.91 billion), Angola (Ksh155.95 billion), Côte d’Ivoire (Ksh142.96 billion), Namibia (Ksh116.96 billion) and Uganda (Ksh103.97 billion).

Kenya’s growing crypto market coincides with increased regulation, with rules governing virtual asset service providers taking effect on July 22, 2026. The sector is supervised by the Central Bank of Kenya and the Capital Markets Authority.

34% of Kenyan Household Businesses Make Ksh5,000 or Less Monthly

More than a third of household businesses in Kenya generate monthly revenue of Ksh5,000 or less, according to a new Kenya National Bureau of Statistics (KNBS) survey.

As reported by the Business Daily, he 2025–26 Kenya Mini Demographic and Health Survey found that 34% of these enterprises fall into the lowest revenue category, equivalent to about Ksh167 in daily sales.

Rural businesses face greater challenges, with 43.1% earning below Ksh5,000 monthly, compared to 27.5% in urban areas.

Women operate 58.5% of household enterprises, while 63.3% of urban and 68.9% of rural businesses remain unregistered.

World Bank Raises Kenya’s Economy Growth Forecast to 4.6%

The World Bank raised its 2026 growth forecast to 4.6% from 4.3%, citing stronger-than-expected economic performance in the first half of the year.

As reported by Reuters, the lender further cautioned that the August 2027 General Election could increase uncertainty, discourage investment and tourism, and put further pressure on government spending.

The World Bank also warned that corruption and collusion cost Kenya an estimated 2% of GDP annually, increasing government borrowing needs and limiting economic growth.

in its latest Kenya Economic Update, the lender identified corruption as the biggest obstacle to faster and more inclusive economic growth, noting that governance weaknesses also increase borrowing costs.

The warning comes as Kenya struggles with heavy debt repayments and repeated fiscal deficit overruns.

Kenya, China Sign Deal to Install 80 Solar Power Systems in Remote Areas

Kenya and China have signed an agreement to install 80 off-grid solar power systems in underserved communities, expanding access to clean energy.

As reported by Citizen Digital, the Africa Solar Belt Project will prioritise public facilities, including health centres, schools and community water supply systems.

The initiative, supported by UNICEF through technical expertise, resources and matching funds, will also power digital learning infrastructure in schools.

Potential installation sites include Kilifi, Tana River and Maasai Mara University.

The project is expected to strengthen rural electrification, improve essential services and support Kenya’s renewable energy and climate resilience targets.

Kenya Bankers Launches Roadmap to Accelerate Sustainable Financing

The Kenya Bankers Association has unveiled the Banking Industry Sustainable Finance Roadmap, a new framework aimed at accelerating sustainable financing and strengthening the sector’s role in Kenya’s economic and environmental priorities.

The roadmap seeks to help financial institutions integrate sustainability into governance, risk management, lending decisions, reporting and capital allocation.

It will also guide banks in managing climate and nature-related financial risks while directing capital towards green and sustainable investments.

The roadmap was developed through a partnership of  Kenya Bankers Association (KBA),  the International Finance Corporation (IFC) and WWF-Kenya.

NCBA Cuts Kenya’s 2026 Economic Growth Forecast to 4.8%

NCBA Group has lowered Kenya’s 2026 economic growth forecast to 4.8% from 5.1%, citing geopolitical tensions, volatile commodity prices and domestic pressures.

As reported by Capital Business, the bank expects growth to remain between 4% and 5% in 2027, warning that the upcoming General Election could further weigh on economic activity.

Speaking at the NCBA Economic Forum 2026, CEO John Gachora said the economy remained resilient but had limited capacity to absorb additional shocks.

Treasury CS John Mbadi said the government was targeting 5.1% growth in 2027, supported by fiscal discipline, improved revenue collection and increased investment.

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