Kenya’s government has extended an invitation to Marathon Digital Holdings to discuss its energy requirements and establish operations in the country, according to local reports. Despite efforts by the central bank to discourage cryptocurrency investment, Kenya has emerged as one of Africa’s leading crypto markets and consistently ranks first worldwide for peer-to-peer trading.
Cryptocurrencies have gained traction in Africa, with several countries in the region diverging from Western approaches and embracing Bitcoin. Kenya is the latest country to push for adoption, actively seeking the participation of major Bitcoin miners to establish operations within its borders.
Reports suggest that the Kenyan government has reached out to BTC miners to engage in discussions regarding their energy needs and the necessary support for setting up operations in the country. Speaking at an investment summit in Nairobi, Kenyan President William Ruto expressed his support for global investors interested in establishing BTC mining operations in Kenya. The government plans to create special zones where energy costs will be subsidized to attract more miners, especially with rising power rates posing challenges to the sector.
President Ruto highlighted the benefits of the special economic zones program, which offers a comprehensive package of fiscal, infrastructural, procedural, and regulatory incentives. This initiative has significantly increased Kenya’s appeal as an investment destination on the global stage.
Kenya’s approach marks a significant shift for its thriving crypto ecosystem. The Central Bank of Kenya (CBK) has previously discouraged the public from investing in crypto due to its perceived risks, including lack of regulation, absence of underlying assets or backing, and speculative nature. The apex bank has explicitly stated that Bitcoin and similar products are not legal tender and are not regulated in Kenya, urging the public to refrain from transacting in them.
Despite these warnings, Kenyans have defied the CBK’s stance, making the country one of the top three in Africa for crypto adoption, alongside Nigeria and South Africa. In 2022, Kenya ranked 19th globally for crypto adoption and fifth for peer-to-peer volume, surpassing countries like the US, the UK, Argentina, and Turkey in the latter category.
Kenya is just one of several African nations that have embraced cryptocurrencies. Nigeria remains the continental leader, despite its well-publicized crackdown on Binance. The West African country ranked second in terms of crypto adoption last year, coming in second only to global leader India. However, Nigeria topped the charts for peer-to-peer exchange trade volume.
The growth of Bitcoin mining in Africa has gained considerable momentum, as demonstrated by the increasing interest and participation of various countries in the region.