Kenya’s government has extended an invitation to Marathon Digital Holdings to discuss the country’s energy requirements and the possibility of establishing operations in the country. Despite efforts by the central bank to discourage cryptocurrency investments, Kenya has emerged as one of Africa’s leading crypto markets and has consistently ranked first globally for peer-to-peer trading.
A number of African countries have embraced cryptocurrencies, deviating from Western approaches and adopting Bitcoin. Kenya is the latest country in the region to actively promote adoption, seeking to attract some of the world’s largest Bitcoin miners to establish operations within its borders.
According to local reports, the Kenyan government has reached out to BTC miners to engage in discussions regarding their energy needs and the necessary support required to establish operations in the country.
President William Ruto, speaking at a recent investment summit in the capital city of Nairobi, expressed his support for global investors interested in setting up Bitcoin mining operations in Kenya. This support includes the creation of special zones where energy costs will be subsidized, aimed at attracting more miners, especially given the challenges posed by escalating power rates within the sector.
The President stated, “The special economic zones program represents a comprehensive package of highly attractive fiscal, infrastructural, procedural, and regulatory incentives, leading to a consistent increase in Kenya’s global appeal as an investment destination.”
Kenya’s pursuit of Bitcoin miners marks a significant shift in the country’s thriving crypto ecosystem. The Central Bank of Kenya (CBK) has historically discouraged the public from investing in cryptocurrencies, citing their unregulated nature, lack of underlying assets, and speculative value.
In a statement, the apex bank urged investors to refrain from transacting in Bitcoin and similar products, as they are not considered legal tender and are not regulated in Kenya. However, Kenyans have disregarded these warnings, with the country ranking among 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 trading volume, surpassing countries like the US, the UK, Argentina, and Turkey in the latter category.
Kenya is just one of several African countries that have embraced cryptocurrencies. Nigeria remains the continental leader, despite its well-publicized crackdown on Binance. Nigeria ranked second for crypto adoption globally last year, placing behind India, the global leader. However, Nigeria took the top spot for peer-to-peer exchange trade volume.
The growing trend of Bitcoin mining in Africa is gaining momentum, as the continent continues to embrace the potential of cryptocurrencies.