-
Blockchain has emerged as a disruptive force promising decentralisation, transparency and efficiency across various sectors.
- ICT-Security and Audit Control Secretary Emmanuel Kata Kimeu said the government aims to establish a conducive regulatory environment.
Image: HANDOUT
Stakeholders in the blockchain and crypto currency industry have said better regulatory frameworks will unlock the potential of the sector in Kenya.
The industry has emerged as a disruptive force promising decentralisation, transparency and efficiency across various sectors.
The stakeholders spoke during a two-day Kenya Block Chain and Crypto Conference, 2024, in Karen.
The conference sought to address the regulatory framework challenges that continue to hinder the growth of the industry.
ICT-Security and Audit Control Secretary Emmanuel Kata Kimeu highlighted the impactful strategies government contributes to blockchain technology as it seeks to unlock new opportunities for economic development.
“We are working to establish a clear guidelines for initial coin offerings (ICOs), exchanges and trading practices, regulators can instill confidence in the market, attracting institutional investors and fostering long-term growth," Kimeu said.
He said the government aims to establish a conducive regulatory environment that balances innovation with compliance.
Kimeu said regulators can nurture the growth of blockchain and cryptocurrency startups, driving technological advancements and economic prosperity with the right environment.
In Kenya, the thriving tech sector known as the 'Silicon Savannah' fosters blockchain innovation and entrepreneurship.
Startups and developers are looking into blockchain-based solutions for a variety of industries, including agriculture, healthcare, identity management and supply chain logistics.
Kotani Pay CEO, Felix Macharia, said one of the key drivers behind the rise of cryptocurrencies in Africa is the continent's large unbanked population.
Macharia said traditional banking services have struggled to reach remote areas leaving millions without access to basic financial services.
"Cryptocurrencies offer a decentralised alternative allowing individuals to participate in the global economy without relying on traditional banking infrastructure,” Macharia said.
He said blockchain technology holds the potential to revolutionise various sectors across the African continent.
Macharia said among the sectors that will benefit are agriculture, healthcare and supply chain management.
"By providing transparent and immutable record-keeping, blockchain can help combat corruption, streamline processes and ensure fair distribution of resources," he said.
Nairobi Innovation and Digital Economy Executive Committee member, Michael Gumo, said the county government is setting up comprehensive strategies to ensure people have the knowledge and understanding they need to navigate the complex landscape of blockchain and AI effectively.
Gumo said there is a lot of human resources in the technological set-up that is not being harnessed properly.
"This industry in Africa is poised for exponential growth, fueled by a young and tech-savvy population, as well as the pressing need for financial inclusion and innovation," he said.
Gumo said despite the promising outlook, the cryptocurrency and blockchain industry in Africa still faces hurdles.
He said regulatory uncertainty, cybersecurity concerns and lack of awareness remain significant barriers to widespread adoption.
Gumo said with the right policies and infrastructure in place, Africa has the potential to harness the transformative power of blockchain technology to drive sustainable development and economic prosperity.