Local Fintech AfriBit Africa Uses Bitcoin to Pay Community Workers in a Kenyan Slum

• Bitcoin enables unbanked Kibera residents to earn and transact without documentation.
• Over 200 locals now use Bitcoin, expanding beyond initial garbage collection groups.
• AfriBit’s model offers lower-cost payments than M-PESA but faces volatility concerns.

In Soweto West, a neighborhood within Kenya’s sprawling Kibera slum, a new initiative is using Bitcoin to bring digital financial services to low-income residents who have long been excluded from the traditional banking system. The project, introduced by local fintech firm AfriBit Africa, is a powerful real-world example of how cryptocurrency can foster financial inclusion.

The operation began in early 2022 by partnering with local garbage collection groups, which are largely composed of young residents. After completing community clean-ups on Sundays, these workers are paid a few dollars’ worth of Bitcoin for their labor.

Related: Kenya’s Crypto Ban Nears End: Legal Framework in Development

According to Ronnie Mdawida, co-founder of AfriBit Africa, garbage collectors serve as major agents of adoption in Soweto West. He said many Kibera residents lack access to basic savings tools due to limited documentation and banking restrictions. Mdawida described the Bitcoin-based approach as offering a practical path toward financial access.

From Garbage Collection to a Local Bitcoin Economy

AfriBit Africa estimates it has invested approximately $10,000 worth of Bitcoin into the local economy through this model. In Kibera, where many residents live on less than one dollar a day, the additional income is major.

Over time, Bitcoin’s use has expanded beyond the original collector groups. Some small merchants and motorcycle taxi operators in Soweto West now accept Bitcoin as a form of payment. ABC News reports that approximately 200 residents in the neighborhood currently use Bitcoin.

Related: Kenya Collected $77.5M in Crypto Taxes — $465M Target Next, Exchanges in Focus

Damiano Magak, a 23-year-old garbage collector and food seller, noted that he prefers receiving payments in Bitcoin over Kenya’s dominant mobile money platform, M-PESA. He cited M-PESA’s higher transaction costs and slower processing speeds as factors influencing his decision.

While M-PESA transactions under 100 Kenyan shillings are fee-free, fees increase with transaction volume. In contrast, Lightning Network transactions are often free when conducted through the platform introduced by AfriBit Africa.

Volatility and Regulation Remain Key Challenges

Despite the project’s grassroots success, significant challenges remain. Bitcoin’s inherent price volatility is a major risk, especially for users in low-income settings where preserving value is critical. The lack of regulatory oversight for cryptocurrencies in Kenya also presents another layer of uncertainty.

While no major issues have been documented so far, the project’s long-term sustainability will depend on navigating these risks as authorities remain cautious about global crypto trends and potential security threats.