There is a need to introduce new payment methods as a way of supporting development in Kenya

The Financial sector in Kenya has evolved drastically over the last decade. New payment options are being introduced as a way to merge traditional payment methods with modern technological advancements. In this article, we will seek to identify the need for the central bank of Kenya to embrace and regulate crypto currency as an alternative payment method in an evolving Kenya.

Kenya has seen a lot of development in infrastructure both in the public sector and in the private sector. The infrastructural growth includes the construction of new roads, buildings and hospitals. In the private sector, international and multinational companies have moved or are planning to relocate their headquarters from Europe and Asia and are seeking to expand their business to Kenya and Africa.

The attraction to do business has been created by the fact that Kenya has a stable business environment, there are laws protecting companies, the availability of raw materials and “young” labor. Multinational companies are seeking to employ local labor but as most of them are startups they are also relying on “mother” countries for funding. If crypto currencies are legalized and regulated for use, these multinational companies will opt to pay their staff using crypto currency to avoid double taxation and high inflation rates of local currency.

Thinking about companies or individuals who are interested in the import and export business, the use of crypto currency will ensure that supplied goods and services are paid for quickly and there is no delay in the importation of goods and services.

The most current Infrastructural developments in Kenya include the new parking fees collection apps introduced by the National Metropolitan Services and the 27 KM, Nairobi Expressway which will soon be open to the general public for use. The road is a toll road meaning drivers and users of the road will be required to pay to allow them to use the road. So far, the company managing the toll road has introduced a new payments method that will require users to use Card (visa) or also pay via cash. An alternative way of topping up the cards other than M-pesa or cash payment can be through the use of Crypto Currencies.

With these recent developments, new revenue collection avenues can be introduced for the government to earn revenue through road levies and taxes.

The government cannot, therefore, rely on the collection of physical money and direct banking as a way of ensuring that the revenue is collected and accounted for. It’s therefore a high time that the government through the CBK regulates Crypto Currency for use as an alternative avenue to collect revenue.

Crypto currencies are digital coins that are stable and are not affected by inflation or political instability. In an event that the road users are unable to top up their cards or their ETC devices and want to urgently use the road, they can top up using their crypto coins via P2P platforms that are readily available and easy to use.

With many available payment methods, the government will be able to ensure that it has bridged the gap in payments, ensure that payments are done efficiently, there is traceability of funds and that all revenue is accounted for.