Stablecoin and Cryptocurrency Adoption: Comparing Kenya and Nigeria
“RZS 16(2) - Stablecoin and Cryptocurrency Adoption” - Our research examines blockchain adoption patterns in Nigeria and Kenya, powered by PeerPesa
The cryptocurrency landscape across Africa is developing at different rates and with distinct characteristics, shaped by regional needs, existing financial infrastructure, and regulatory environments. Our recent survey examining cryptocurrency and stablecoin usage across Nigeria and Kenya reveals fascinating insights into how these markets approach digital assets while maintaining their unique regional characteristics.
Why This Research Matters
Understanding the nuanced differences in cryptocurrency adoption across African markets is critical for several reasons. First, as blockchain-based solutions expand across the continent, region-specific insights help ensure these innovations align with actual user behaviors and needs. Second, the findings can guide cryptocurrency education efforts by highlighting adoption barriers unique to each market. Finally, these insights help bridge the gap between traditional financial systems and emerging blockchain technologies, potentially accelerating adoption while respecting local preferences.
This research specifically examines Nigeria and Kenya—two markets with different financial ecosystems and at various stages of cryptocurrency adoption. By comparing these contrasting landscapes, we gain valuable insights applicable to digital financial service development in other emerging markets worldwide.
Understanding the Markets
Respondent distribution across three African markets provides balanced insights into West and East African cryptocurrency adoption, with Nigeria (50%) and Kenya (47.2%) representing the majority of the sample.
Our analysis draws from a comprehensive survey of 36 individuals, with 50% from Nigeria, 47.2% from Kenya, and 2.8% from South Africa. While Nigeria and Kenya represent the larger samples with nearly equal representation, providing valuable insights into West and East African cryptocurrency markets, respectively.
Cryptocurrency Knowledge and Adoption
Nigerian respondents demonstrate significantly higher active cryptocurrency familiarity (77.8%) compared to Kenya (52.9%), suggesting a more mature crypto ecosystem in West Africa despite both countries showing strong awareness.
Cryptocurrency familiarity shows interesting variations between Nigeria and Kenya. Nigerian respondents demonstrate significantly higher active cryptocurrency familiarity (77.8%) compared to Kenya (52.9%), suggesting a potentially more mature cryptocurrency ecosystem in West Africa. While all respondents had at least some familiarity with cryptocurrencies, the higher percentage of “Very familiar” responses in Nigeria indicates a potentially deeper integration of crypto into their financial activities.
Nigeria shows higher daily cryptocurrency activity (38.9% vs Kenya’s 29.4%), while Kenya has proportionally more monthly users (29.4% vs Nigeria’s 11.1%), revealing distinct transaction habits across these African markets.
Transaction frequency data further supports this difference in adoption maturity. Nigeria shows higher daily cryptocurrency activity (38.9% vs Kenya’s 29.4%), with 66.7% of Nigerians transacting at least weekly compared to 52.9% in Kenya. The higher percentage of monthly users in Kenya (29.4% vs Nigeria’s 11.1%) suggests a different pattern of usage, potentially more tied to specific monthly needs rather than everyday financial activities.
Primary Financial Services
Kenya shows overwhelming preference for mobile money (70.6% vs Nigeria’s 27.8%), while Nigeria has significantly higher crypto wallet usage for daily transactions (44.4% vs Kenya’s 17.6%), highlighting fundamental differences in regional financial infrastructure.
Perhaps the most striking difference between the markets emerges in preferred financial services for daily transactions. Kenya shows an overwhelming preference for mobile money (70.6% vs Nigeria’s 27.8%), reflecting the deep entrenchment of M-Pesa in Kenya’s financial ecosystem. In contrast, Nigeria has significantly higher crypto wallet usage for daily transactions (44.4% vs Kenya’s 17.6%), representing a fundamental difference in digital financial infrastructure integration.
Traditional banking remains similarly important in both markets (22.2% in Nigeria, 11.8% in Kenya), while cash-based transactions appear minimal among respondents (5.6% in Nigeria, 0% in Kenya), suggesting this particular sample represents a digitally-engaged segment of both populations.
Cryptocurrency Use Cases
While investment remains important in both countries, striking differences emerge in use cases: Kenya prioritizes remittances while Nigeria emphasizes domestic P2P transactions, revealing market-specific cryptocurrency adoption patterns.
While investment remains important in both countries (44.4% in Nigeria, 41.2% in Kenya), striking differences emerge in other use cases. The most notable difference is that 41.2% of Kenyan respondents primarily use crypto for remittances (compared to 0% in Nigeria), while 27.8% of Nigerians use it for domestic P2P transactions (compared to 0% in Kenya).
These contrasting priorities reflect different market needs - Kenya’s strong focus on remittances suggests cryptocurrency is viewed as a solution for cross-border payments, potentially offering advantages over traditional remittance services. Nigeria’s emphasis on domestic P2P transactions may reflect currency volatility concerns or regulatory restrictions on traditional financial services, with cryptocurrency providing an alternative payment rail within the country.
Stablecoin Awareness and Adoption
Nigeria shows complete stablecoin adoption among respondents (100%), while Kenya has a strong but not universal 82.4% adoption rate, suggesting stablecoins may be more essential in Nigeria’s crypto ecosystem.
Stablecoin awareness is universal across both markets, with 100% of respondents familiar with stablecoins like USDT, USDC, and cUSD. However, adoption patterns differ slightly: Nigeria shows complete stablecoin adoption among respondents (100%), while Kenya has a strong but not universal 82.4% adoption rate.
This difference suggests stablecoins may be more essential in Nigeria’s crypto ecosystem, potentially due to the country’s history of currency volatility and inflation challenges. The Naira’s fluctuations may drive Nigerians toward stablecoins as a store of value, while Kenya’s more stable currency environment might make stablecoins slightly less crucial for some users.
Nigeria shows higher daily stablecoin usage (44.4%) with 77.7% of Nigerians transacting at least weekly compared to 70.6% in Kenya, indicating more regular stablecoin engagement in the West African market.
Transaction frequency data for stablecoins mirrors the general cryptocurrency patterns, with Nigeria showing higher daily stablecoin usage (44.4% vs Kenya’s 35.3%) and 77.7% of Nigerians transacting at least weekly compared to 70.6% in Kenya. The presence of “Never” responses in Kenya (5.9%) versus none in Nigeria further supports the observation that stablecoins play a more essential role in Nigeria’s cryptocurrency ecosystem.
Stablecoin Preferences and Benefits
Price stability emerges as the primary benefit across both markets, but Kenyan users value transaction fees significantly more (85.7% vs Nigeria’s 33.3%), suggesting different priorities in stablecoin utility between East and West Africa.
When examining why users prefer stablecoins over other cryptocurrencies, price stability emerges as the primary benefit across both markets. However, significant differences appear in other preferences: Kenyan users value lower transaction fees significantly more (85.7% vs Nigeria’s 33.3%), suggesting different priorities in stablecoin utility between East and West Africa.
The relatively similar ratings for “Hedging against local currency devaluation” in both countries (38.9% in Nigeria, 42.9% in Kenya) is somewhat surprising given Nigeria’s greater currency volatility challenges. This may indicate that Kenyan users are equally concerned about potential currency risks, despite the Kenyan Shilling’s relative stability compared to the Naira.
Cash-out Methods and Challenges
Kenya strongly favors mobile money for cash-outs (82.4% vs Nigeria’s 50.0%), while Nigeria relies more heavily on P2P exchanges (61.1% vs Kenya’s 41.2%), reflecting distinct financial infrastructure preferences in these markets.
How users convert cryptocurrency to local currency reveals significant infrastructure differences. Kenya strongly favors mobile money for cash-outs (82.4% vs Nigeria’s 50.0%), reflecting the country’s extensive mobile money ecosystem. Nigeria relies more heavily on P2P exchanges (61.1% vs Kenya’s 41.2%), potentially indicating a more peer-driven conversion approach.
Bank transfers play a significant role in both markets (44.4% in Nigeria, 35.3% in Kenya), suggesting traditional banking institutions remain important for the crypto-to-fiat bridge. The absence of physical kiosk/agent usage in both markets highlights the predominantly digital nature of the cash-out process for respondents.
Nigerian users face distinct cash-out challenges with KYC verification (55.6%) and withdrawal limits (50.0%) emerging as primary pain points, reflecting the country’s regulatory approach to cryptocurrency.
Kenyan users uniquely struggle with slow processing times (58.8%) and limited liquidity (47.1%) when cashing out cryptocurrency, creating a challenge profile distinctly different from Nigeria’s regulatory hurdles.
Cash-out challenges reveal perhaps the most striking differences between the markets. Nigerian users face distinct challenges with KYC verification (55.6% vs Kenya’s 11.8%) and withdrawal limits (50.0% vs Kenya’s 35.3%), reflecting the country’s stricter regulatory approach to cryptocurrency. Kenyan users uniquely struggle with slow processing times (58.8% vs Nigeria’s 16.7%) and limited liquidity (47.1% vs Nigeria’s 11.1%).
These different challenge profiles suggest fundamentally different market constraints - Nigeria’s challenges appear more regulatory and compliance-focused, while Kenya’s issues center on operational and market depth limitations. This distinction has important implications for platforms seeking to improve the cash-out experience in each market.
Remittance Patterns and Preferences
A striking contrast emerges in remittance preferences with Nigeria embracing crypto remittances (77.8%) while Kenya heavily favors mobile money for overseas transfers (82.4%), highlighting each market’s unique approach to cross-border payments.
Remittance preferences reveal another dramatic contrast between markets. Nigeria shows remarkably high crypto adoption for remittances (77.8%) while Kenya heavily favors mobile money for overseas transfers (82.4%). This striking difference highlights each market’s unique approach to cross-border payments, with Nigerians leveraging cryptocurrency’s borderless nature while Kenyans utilize their well-established mobile money infrastructure.
Traditional remittance services like Western Union/MoneyGram remain significantly more important in Nigeria (50.0%) than Kenya (17.6%), potentially reflecting different legacy remittance patterns. Bank wire transfers play a small but similar role in both markets, suggesting they’re less competitive on cost or convenience for most users.
Nigerian respondents report higher remittance costs, with 38.9% paying 6-10% fees (compared to 23.5% in Kenya), while more Kenyans (41.2%) experience moderate 3-5% fees, suggesting Kenya’s remittance market may offer slightly better pricing.
Remittance costs reveal important differences in market efficiency. Nigerian respondents report higher remittance costs, with 38.9% paying 6-10% fees (compared to 23.5% in Kenya), while more Kenyans (41.2%) experience moderate 3-5% fees. This suggests Kenya’s remittance market may offer slightly better pricing, potentially due to greater competition or more efficient infrastructure.
The percentage of respondents unaware of their remittance costs is similar in both markets (22.2% in Nigeria, 29.4% in Kenya), indicating a significant portion of users who may benefit from greater fee transparency.
Crypto Remittance Experience and Future Preferences
Nigeria shows significantly higher frequency of crypto remittances with 50.0% receiving them regularly (vs Kenya’s 23.5%), while Kenyan users show more experimental usage with 52.9% having tried once or twice.
Crypto remittance experience further highlights market differences. Nigeria shows significantly higher frequency of crypto remittances with 50.0% receiving them regularly (vs Kenya’s 23.5%), while Kenyan users show more experimental usage with 52.9% having tried once or twice (vs Nigeria’s 22.2%).
Overall adoption is similar (72.2% in Nigeria, 76.4% in Kenya having used crypto remittances at least once), but the usage patterns differ substantially - Nigeria shows more committed, regular users while Kenya shows more experimental, occasional usage. This difference in usage patterns suggests different stages of adoption maturity between the markets.
Nigerian respondents show much stronger enthusiasm for crypto remittances with 88.9% definitely preferring them (vs Kenya’s 47.1%), while Kenyans are more cautious, with 52.9% requiring easier conversion options.
Future preferences for crypto remittances reveal an enthusiasm gap between markets. Nigerian respondents show much stronger enthusiasm with 88.9% definitely preferring crypto remittances (vs Kenya’s 47.1%), while Kenyans display more caution, with 52.9% requiring easier conversion options (vs Nigeria’s 11.1%).
This difference in enthusiasm may reflect Nigeria’s more challenging traditional remittance environment or greater regulatory constraints on conventional cross-border payments. Alternatively, it could indicate Kenya’s existing mobile money remittance channels provide sufficiently satisfactory service that crypto’s advantages appear less compelling without easier conversion options.
Barriers to Crypto Adoption
Both countries identify awareness/education as the primary barrier, though it’s more pronounced in Nigeria (88.9% vs Kenya’s 70.6%), highlighting the need for educational initiatives to increase cryptocurrency literacy across African markets.
Understanding barriers to broader adoption reveals both similarities and differences between markets. Both countries identify awareness/education as the primary barrier, though it’s more pronounced in Nigeria (88.9% vs Kenya’s 70.6%). This suggests educational initiatives remain crucial for increasing cryptocurrency literacy across both markets, with potentially greater urgency in Nigeria.
Nigerian respondents perceive significantly more challenges with platform limitations (61.1% vs Kenya’s 41.2%) and regulatory issues (50.0% vs Kenya’s 41.2%), suggesting a more complex adoption environment despite higher current usage. Volatility concerns are present in both markets but relatively minor compared to other barriers, likely reflecting the stabilizing role of stablecoins in users’ cryptocurrency portfolios.
Looking Ahead
These findings suggest several key considerations for cryptocurrency providers and stakeholders in African markets:
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Market-Specific Approaches: One-size-fits-all cryptocurrency solutions are unlikely to succeed across all African markets. Nigeria’s emphasis on P2P transactions and crypto wallets versus Kenya’s mobile money integration requires tailored strategies.
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Infrastructure Integration: Solutions should prioritize integrating with the dominant financial channels in each region - mobile money in Kenya, and potentially more direct crypto options in Nigeria.
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Regulatory Navigation: The different regulatory challenges faced in each market, especially Nigeria’s stronger KYC and withdrawal limit issues, require market-specific compliance approaches.
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Education Focus: While educational efforts are important across both markets, Nigeria’s stronger identification of awareness as a barrier suggests potentially greater need for crypto literacy initiatives there.
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Remittance Positioning: Crypto remittance solutions need different positioning strategies - highlighting cost and speed advantages against traditional services in Nigeria, while emphasizing mobile money integration and conversion ease in Kenya.
The cryptocurrency landscape across Africa continues to evolve, with Nigeria and Kenya showing different but equally valid paths to adoption. Understanding these differences and similarities is crucial for any organization looking to contribute to Africa’s financial future through blockchain-based solutions.
Methodology and Data Collection
This analysis draws from survey data collected specifically from respondents in Nigeria, Kenya, and South Africa, with a sample size of 36 individuals (18 from Nigeria, 17 from Kenya, 1 from South Africa). The survey focused on understanding current cryptocurrency behaviors, preferences, and needs across multiple dimensions of digital financial service usage.
Please note that this particular survey was conducted between Monday 31st March and April 4th, 2025, and it was collected from MiniPay users with active Celo wallet addresses. They were compensated 2,000 G$ token each, and the address to the smart contract distributing the rewards was/is 0x4ab46c87262cd34a878835e5597adc5ace259524.
This blog post was developed using AI based on comprehensive survey data and was reviewed and edited by us.