Swypt, a decentralised finance startup, has launched Kenya’s first decentralised stablecoin, cKES, on the Mento platform. Pegged 1:1 to the Kenyan shilling, cKES is positioned as an alternative to traditional mobile money services, offering users a stable and efficient way to conduct digital transactions. However, the country’s evolving regulatory landscape could determine how far Swypt can go.
Founded by Davis Thoyah in May 2023, Swypt aims to streamline peer-to-peer crypto trading and enhance digital payments for businesses and individuals. The platform made its debut at ETHSafari 2023 before officially launching in June 2024, providing stablecoin transactions and SME payment solutions.
By integrating cKES, Swypt is tapping into Kenya’s growing crypto adoption, promising faster and cheaper cross-border transactions. But with new regulations on the horizon, the future of decentralised finance in the country remains uncertain.
Regulations Could Shape Crypto’s Future
Kenya’s government is moving towards stricter oversight of the crypto industry. The proposed Virtual Asset Service Providers Bill (2025) could require cryptocurrency firms to set up local offices and appoint executives subject to regulatory approval. This could create operational hurdles for platforms like Swypt but also provide legitimacy to the industry.
Additionally, the Finance Act of 2023 introduced a 3% tax on income from digital asset sales, including cryptocurrencies and NFTs. While this signals the government’s intent to integrate crypto into the formal economy, it may also increase transaction costs and impact adoption.
If passed, the new regulatory framework would place the Central Bank of Kenya (CBK) in charge of payment-related crypto services, while the Capital Markets Authority (CMA) would oversee exchanges and virtual asset trading. For Swypt, compliance could mean higher administrative costs but also an opportunity to gain credibility in Kenya’s financial ecosystem.
Can Swypt Overcome the Challenges?
As Kenya’s crypto industry evolves, Swypt’s ability to navigate regulations, secure merchant adoption, and convince users of cKES’s advantages over traditional mobile money will be crucial. While the platform offers a promising alternative for SMEs and gig workers, regulatory compliance and taxation could determine how quickly it gains traction.
For now, Swypt is pushing the boundaries of digital payments in Kenya. But will regulations slow it down or set the stage for wider adoption?
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