Nairobi Startup Uses Bitcoin to Deliver Banking Alternatives in Slums

A Nairobi startup is reshaping how money moves in one of Africa’s largest informal settlements. AfriBit Africa, founded in 2022 by community organiser Ronnie Mdawida, has facilitated more than 2,000 Bitcoin transactions in Kibera, a slum home to nearly a quarter of a million people.

The project was created to bridge financial exclusion in communities where over 80% of residents lack access to formal banking, despite Kenya’s reputation as a leader in mobile payments through platforms like M-Pesa. Banks have traditionally avoided operating in Kibera due to poor infrastructure and regulatory hurdles, leaving locals heavily dependent on cash and informal financial systems.

Mdawida’s vision started with modest grants in Bitcoin to garbage collectors and casual labourers. What began as a grassroots experiment has grown into a budding ecosystem: over 40 small businesses in Kibera now accept Bitcoin payments, and training programs have empowered more than 120 women and youth to earn income through upcycling projects denominated in Bitcoin.

“We’re not here to evangelise about Bitcoin,” Mdawida explained. “This is about proving that communities normally left behind can take charge of their financial future using tools they can directly control.”

For many in Kibera, Bitcoin is becoming a gateway to global financial networks. Residents can bypass strict banking requirements, receive cross-border remittances, and store value in digital form. Advocates say this provides dignity and autonomy to people locked out of the formal economy.

Still, experts warn that the approach comes with risks. Edward Kusewa, an economist at St. Paul’s University in Nairobi, notes that cryptocurrencies remain highly volatile. “Sharp fluctuations in Bitcoin’s value could hit vulnerable populations hardest, undermining purchasing power and creating new forms of financial insecurity,” he cautioned.

Even so, AfriBit Africa continues to attract attention as a model for decentralised finance in underserved communities. The project’s treasury and transaction activity may be small by global standards, but its social impact in Kibera suggests Bitcoin’s utility can extend beyond speculation—offering financial lifelines in places long ignored by traditional systems.