If you’re in Kenya and interested in buying Bitcoin using M-Pesa, the popular mobile money platform, this guide is for you. Kenya is one of the top markets for buying and selling Bitcoin in Africa.
To buy Bitcoin with M-Mpesa, you’ll basically need: A Kenyan Safaricom line with M-Pesa enabled and a reputable Bitcoin exchange that supports M-Pesa payments, such as the ones we have listed below.
Is Bitcoin Legal in Kenya?
While Bitcoin is not legal tender in Kenya and is not currently regulated, its decentralized nature means it doesn’t require approval from a central bank, unlike the Kenyan shilling.
Kenya is one of the leading countries in Africa in terms of Bitcoin adoption, Bitcoin-related organizations and initiatives, and Bitcoin startups. Moreover, Bitcoin mining giant Marathon Digital’s partnership with the Kenyan government indicates potential growth in the Bitcoin sector in the country.
Buy Bitcoin Using M-Pesa
Popular options for M-Pesa Bitcoin purchases include the following Bitcoin exchanges and apps in Kenya:
Can I buy Bitcoin anonymously with M-Pesa? To address the question of anonymity, it’s important to note that while some exchanges may not require KYC verification, M-Pesa transactions themselves are not entirely anonymous. M-Pesa transactions are linked to your mobile phone numbers and accounts, which may be traceable. Therefore, while you may be able to buy Bitcoin with little or no identity verification on some platforms such as Peach Bitcoin, complete anonymity may not be guaranteed when using M-Pesa. It’s essential to consider the level of privacy you require when purchasing Bitcoin with M-Pesa and choose a platform that aligns with your preferences.
Peach Bitcoin
Peach Bitcoin is a Swiss non-KYC exchange that allows you to buy and sell Bitcoin without providing extensive personal information. This peer-to-peer exchange supports Bitcoin purchases via M-Pesa in Kenya.
The Peach Bitcoin wallet is non-custodial, meaning you retain control of the private keys, enhancing security. Additionally, you can send funds from the Peach app to your external wallet, including hardware wallets. The platform also boasts an escrow system in place that enhances trust and security in transactions between peers.
The integration with the Liquid Network offers cheaper and faster settlement times for trading L-USDT for BTC peer-to-peer. The platform charges a 2% fee on the trading volume to the buyer, with the full fee structure transparently displayed at the end of each trade.
TapSwap
TapSwap is an innovative Kenyan Bitcoin Mpesa app designed for seamless buying and selling of Bitcoin using the popular mobile money service in the country. With TapSwap, you can start your Bitcoin journey with as little as KES 1000, equivalent to approximately USD $5. TapSwap also emphasizes low fees and transparent pricing, providing a cost-effective solution for Bitcoin trading with Mpesa.
While registration is live, please note that the beta product is currently only available in Kenya. A full platform launch is scheduled for September 2024, and it will be available globally.
GoChapaa
GoChapaa is a user-friendly Bitcoin wallet and web app that supports Kenyan Shillings and allows you to buy and sell Bitcoin using M-Pesa. To get started, you need to register into the application and verify your email address and phone number. Although they do not have mobile apps yet, they are currently in the process of developing them. In the meantime, the platform is supported on all major browsers.
With GoChapaa, you can invest by scheduling buys daily, weekly, or monthly. As a fairly new platform, it’s essential to keep an eye on their development and updates.
Bitnob
Bitnob is an African Bitcoin exchange for buying Bitcoin, selling, and withdrawing using M-Pesa. The platform’s payout feature allows you to receive Bitcoin directly into your wallet or split it between your Bitcoin and USD wallets. Bitnob also offers additional features such as automated Bitcoin savings plans, recurring buys, and instant dollar-to-Bitcoin conversion, making it a versatile tool for managing your Bitcoin investments.
You can take out a Bitcoin-collateralized loan without documents for up to a year, provided you have a minimum of $100 in your Bitcoin wallet to access a loan of up to 50% of your wallet’s value. While you won’t pay a fee to sell your Bitcoin on Bitnob, they apply a 1.1% spread, meaning you’ll receive a slightly lower price than their current buy rate.
Processing Bitcoin transactions through Bitnob for Business incurs a standard fee of 1%. For buying Bitcoin, market spreads apply, meaning the price you pay could be slightly higher than the listed market price. The service requires no minimum usage level, monthly or annual fees, or contractual commitment.
NoOnes
NoOnes is a peer-to-peer marketplace that enables Kenyans to use their M-Pesa accounts to purchase Bitcoin. Upon registering for a Noones account, you’ll receive a free custodial Bitcoin wallet.
To verify your account, Noones offers two KYC levels. With level 1 phone verification, you can purchase up to $700 worth of Bitcoin daily, with a lifetime trade and send out limit of $10,000. Reaching level 2 email verification increases your lifetime limits to $50,000. Being a P2P marketplace, it uses Bitcoin escrow system safeguards your funds.
Noones also offers a Partner Program, allowing you to earn passive income. You can earn 15% from your invited friends’ trade fees, 4% from friends’ friends, and 1% from their trades. Fees for selling using Mpesa are set at 1%, and there are no fees for buying. Additionally, the platform introduced a mobile top-up feature in December 2023, enabling you to send airtime and mobile data to friends and relatives directly from your wallets.
Sign up with NoOnes referral code to earn rewards
Paxful
Paxful is another platform that allows Kenyans to use M-Pesa to buy Bitcoin. By signing up for a Paxful account and selecting M-Pesa as your payment method, you can browse a list of vendors accepting it. The platform’s escrow service protects buyers and sellers during transactions, ensuring both parties fulfill their obligations. Paxful holds bitcoin in escrow until the seller confirms receiving payment. Once confirmed, Paxful releases the bitcoin to the buyer. Additionally, Paxful provides a variety of educational resources to help users understand Bitcoin and blockchain technology.
Paxful has zero fees for buying or receiving bitcoin. However, selling bitcoin on the platform attracts fees. Paxful charges 1% for most payment methods, which is competitive compared to other exchanges. At the start of a trade, Paxful deducts the escrow amount from your Paxful Wallet. Upon successful completion, Paxful receives the escrow fee.
Paybis
Paybis is a Polish-registered exchange that offers a streamlined process to buy Bitcoin with M-Pesa in Kenya. Once your Mpesa payment is verified, your Bitcoin is dispatched to your wallet within minutes. Depending on the amount and other factors, you may be asked to complete verification to comply with regulations.
For Paybis fees, when you buy 12752 Kenyan shilling (around 100 USD), you will pay a Service fee of 879.89 KES and a Network fee of 26.37 KES. Paybis is known for its fast processing times and user-friendly interface, making it a convenient option for quick Bitcoin purchases using their mobile app or supported browsers.
Binance
Binance P2P has supported M-Pesa since 2020. You can use M-Pesa to buy Bitcoin through their peer-to-peer (P2P) platform, which offers a secure and user-friendly way for users to trade with each other. Binance’s P2P platform allows you to choose from a variety of offers posted by other users, ensuring you get the best possible rate. To begin trading, you’ll need to complete Level 2 identity verification. Next, add M-Pesa as a payment method.
Note that the fees for Binance P2P transactions start at 0.1% for both makers and takers but can decrease with higher trading volumes. Additionally, P2P transaction fees only apply to makers; there is no fee for takers.
Binance is not licensed to carry on business in Kenya and does not intend to obtain any regulatory authorisations in Kenya. It may be difficult for you to enforce your rights and any claim you may have arising under Kenyan law, since Binance is located outside Kenya.
How to Withdraw Bitcoin to Mpesa
To withdraw Bitcoin to M-Pesa using the Tando app, start by installing the app and registering if you haven’t already. Once set up, you can send Bitcoin directly to any Kenyan phone number, and you or your recipient will receive the equivalent amount in Kenyan Shillings (KES) in their M-Pesa account. The recipient doesn’t need the Tando app to receive the funds, making it easy to transfer money quickly and seamlessly.
To complete the process, enter your phone number in the app, and Tando will generate a Lightning invoice for the amount you wish to send. You can pay this invoice using a compatible Lightning wallet, such as Phoenix, Blink, Machankura, Breeze, Strike, BitKit, Zeus, and Wallet of Satoshi. Once you pay, Tando converts the Bitcoin into KES and deposits it into your M-Pesa account. This feature extends beyond just transfers—it enables you to use Bitcoin to cover everyday expenses like electricity, rent, internet, and groceries in Kenya, adding tremendous convenience to your Bitcoin holdings.
