Bitcoin ATMs Pop Up in Kenya Amid Regulatory Uncertainty

Introduction

Shortly after Kenya implemented its first comprehensive cryptocurrency law, Bitcoin ATMs have begun appearing in major shopping malls across Nairobi. This presents an immediate stress test for regulators who claim that no crypto provider is yet authorized to operate.

Emergence of Bitcoin ATMs

Local media outlet Capital News reported that several major malls across Nairobi have new machines branded “Bankless Bitcoin” installed beside traditional banking kiosks, offering cash-to-crypto services to locals.

Historical Context

This isn’t the first time Kenya has seen Bitcoin ATMs. In 2018, The East African reported that ATM provider BitClub installed Bitcoin ATMs in Nairobi, although adoption remained minimal and the devices did not reach mainstream retail spaces. CoinATMradar data indicates that there are currently only two reported Bitcoin ATMs in Kenya.

New Law and Regulatory Warnings

The arrival of new Bitcoin ATMs comes just weeks after Kenya’s Virtual Assets Service Providers Act of 2025 came into effect. On Nov. 4, Kenya implemented its first formal licensing framework for wallet operators, exchanges, custodians, and other crypto platforms. Under the new law, the Central Bank of Kenya (CBK) will be responsible for overseeing payment and custody functions. In contrast, the Capital Markets Authority (CMA) will regulate investment and trading activities. The Central Bank of Kenya warns that no VASP is licensed yet.

Regulatory Challenges

While the law is in effect, the regulations required to initiate licensing of VASPs have not yet been issued. This means that providers are currently operating without the necessary licenses. In a joint notice issued on Tuesday, the CBK and the CMA stated that neither regulator has licensed any VASP under the new laws to operate in or from Kenya. The regulators warned that companies claiming authorization are doing so illegally. “Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the central bank said, adding that the National Treasury is already developing and will issue regulations that will determine when the licensing can start. The situation creates a mismatch. On one hand, visible crypto infrastructure is entering mainstream retail spaces while regulators are warning the public that no operator has the proper authorization. It raises questions about enforcement and the compliance of crypto businesses in the country.

Bitcoin in Kenya

The arrival of Bitcoin ATMs in high-end malls signals that Kenya’s informal crypto ecosystem is expanding despite operating in regulatory gray areas. Capital News reported that while Bitcoin ATMs are only just starting to reach more upscale malls, Bitcoin usage has flourished in lower-income neighborhoods, such as Kibera, where people use BTC as a form of banking. AfriBit Africa co-founder Ronnie Mdawida told the local outlet, “In many cases, people in Kibera do not have an opportunity to secure their lives with normal savings.” He said that with Bitcoin, residents can hold value without documentation and banking paperwork, which he said was “financial freedom” for people living on a dollar a day.

Conclusion

The new Bitcoin ATMs are a catalyst for crypto growth in Kenya, but a great deal of effort needs to be made to ensure that they fully comply with Kenyan regulations.