Kenyans Bypass Banks, Transact Ksh426B Through Crypto

Hello and welcome to the Money News Roundup, where we cover the adoption of stablecoins by Kenyans. We also cover the Posta Kenya's plans to sell multi-billion assets to settle debt.

Kenyans Bypass Banks, Transact Ksh426B Through Cheaper Crypto

Stablecoins are gaining rapid traction in Kenya, with cross-border traders, multinationals, and diaspora communities increasingly adopting them for faster and cheaper payments. 

According to Chainalysis, Kenya transacted Ksh426.4 billion ($3.3 billion) in stablecoins in the year to June 2024, making it the fourth-largest recipient in Africa.

As reported in the Business Daily, Stablecoins, cryptocurrencies backed by reliable assets like the US dollar, offer a cost-effective alternative to traditional payment systems, especially for cross-border transfers.

Local traders use them for imports, diaspora Kenyans for remittances, and multinationals for repatriating profits, often bypassing banks. 

Crypto firm Yellow Card, a key player in Africa’s stablecoin infrastructure, says adoption began with remittances but has now expanded to businesses and gig workers. Firms like Starlink also use stablecoins for faster currency conversion and repatriation.

Transaction costs average 0.5% to 1%, far lower than banks and remittance firms which charge between 4-7%. Integration with mobile money platforms further eases access.

 Despite their unregulated status in Kenya, stablecoins are increasingly seen as mainstream alternatives.

Globally, stablecoins have surged following supportive U.S. legislation. As banks feel the pressure, some financial institutions such as including JPMorgan and Visa are developing their own versions. 

Posta to Sell Ksh7.9B Land Ahead of Investor Takeover, Mulls NSE Listing

The Postal Corporation of Kenya (PCK) is planning on selling dormant assets, mainly land, to clear liabilities totaling Ksh7.2 billion to attract a strategic investor.

As reported by the Business Daily, the corporation has land worth Ksh7.9 billion across the country, including a prime land parcel in Yaya Center, Nairobi.

The total assets of the corporation are valued at Ksh11.2 billion. PCK CEO John Tonui revealed that the institution was in the process of seeking approval from the National Treasury as it prepares to implement the planned sale.

Posta is planning a 15-year public-private partnership for its courier and financial services. Once an investor recoups their investment, the corporation may revert to government control or list on the Nairobi Securities Exchange (NSE).

The planned sale of the assets has been necessitated by the lack of funds by the government.

Kenya to Use Eurobond Surplus for Budget, Raise Domestic Funds to Repay Loans – Mbadi

Treasury Cabinet Secretary John Mbadi has announced that Kenya will use leftover funds from the recent refinancing of its 2028 Eurobonds to support the national budget.

The country raised Ksh193 billion( through new seven- and 12-year Eurobonds) and is expected to use Ksh129B to buy back USD1 billion  Eurobond which matures in 2028 notes. The remainder will help fund the 4.7% deficit in the budget. 

As reported by Bloomberg, the government also plans to repay Ksh122 billion (USD952 million) in syndicated loans maturing in September and October using domestic resources, having already cleared Ksh60 billion (USD470 million). 

With Ksh3.3 trillion in foreign debt repayments due over the next decade, Mbadi stated that  Kenya is reorganizing its debt and exploring alternative financing, including a $1 billion debt-for-food swap, samurai and sustainability-linked bonds, World Bank support, and funding from Abu Dhabi.

Kenya Power Announces Ksh24.24 Billion Profit After Tax

Kenya Power has announced a Ksh24.24 billion profit after tax for the financial year ending June 2025, down from Ksh30.08 billion announced last year

The utility firm announced that it will be paying a final dividend at Ksh0.80 per share.

Kenya announced that its electricity revenue decreased by Ksh11.84 billion from Ksh231.12 billion in FY2023/24 to Ksh219.28 billion. 

This decline was mainly due to reduced foreign exchange recoveries following the sustained stability of the Kenyan Shilling and the application of a lower base tariff aligned to the approved tariff reduction path.

"The Board remains committed to delivering value to shareholders as the Company's financial performance strengthens. In recognition of this continued improvement, an interim dividend of Ksh0.20 per ordinary share was paid during the year," the company announced.

"Building on this momentum, the Board is pleased to recommend a final dividend of Ksh0.80 per ordinary share for the year ended 30 June 2025, subject to applicable withholding tax, to shareholders on the register at the close of business on 2 December 2025. If approved by shareholders, the dividend will be paid on or about 30 January 2026."

Kenya Power Launches New App to Buy Tokens and Monitor Electricity Use in Houses 

Kenya Power has launched a revamped MyPower app, which can now be used to purchase tokens and monitor the electricity consumption of a household.

During the launch on Monday, October 6,  Kenya Power stated that the revamped app also allows for users of post-paid meters to pay electricity bills, self-read their postpaid meters, lodge billing complaints, and access scheduled power interruptions.

"The Company’s MyPower App has been redesigned with a modern interface, making it more user-friendly with additional features such as managing multiple accounts (for landlords), monitoring monthly token use, as well as a direct chat support via the WhatsApp Channel,” read the statement in part. Read more coverage Money254.co.ke.