Swypt, a decentralized finance platform, has integrated cKES, Kenya’s first decentralized stablecoin on Mento, a separate decentralized platform, pegged 1:1 to the Kenyan shilling. This move reflects a growing trend in Kenya’s fintech landscape, where stablecoins are seen as an alternative to traditional mobile money and banking systems. However, the country’s evolving regulatory frameworks may influence the platform’s growth.
Founded in May 2023 by Davis Thoyah, Swypt seeks to address inefficiencies in peer-to-peer (P2P) crypto trading. The platform debuted at ETHSafari 2023 and officially launched in June 2024. It offers a suite of payment solutions, including stablecoin transactions and SME payments, to enhance accessibility and efficiency in the digital payments ecosystem.
Swypt’s integration of cKES allows users to make cross-border transactions, addressing the need for faster and more affordable payment options in a growing crypto-savvy market. However, regulatory changes in Kenya could pose challenges. The National Treasury’s Virtual Asset Service Providers Bill (2025) proposes that cryptocurrency firms establish local offices in Kenya and appoint executives subject to regulatory approval. If passed, this bill would allow the government to license and regulate crypto service providers within the country, potentially creating new operational hurdles for companies like Swypt.
In addition, the Finance Act of 2023 introduced a 3% tax on income generated from the sale of digital assets, including cryptocurrencies and non-fungible tokens (NFTs). This tax policy indicates the Kenyan government’s intent to incorporate digital assets into its formal tax framework, signaling both an opportunity for revenue generation and potential friction with users who may face higher transaction costs.
Under the proposed Virtual Asset Service Providers Bill, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) would jointly regulate the crypto sector. The CBK would oversee service providers offering payment and currency-related solutions, while the CMA would regulate entities involved in crypto trading, exchanges, and initial public offerings of virtual assets. These regulations could legitimize the industry but also create new compliance burdens for decentralized platforms like Swypt.
While these developments suggest both opportunities and challenges for Swypt, the company will need to carefully navigate the regulatory landscape. Adhering to local office requirements and executive vetting could enhance operational transparency, but it could also increase administrative costs. Furthermore, the 3% digital asset tax could impact user adoption, particularly if it raises the cost of transactions or limits the appeal of crypto-based solutions to price-sensitive users.
For now, Swypt offers an alternative payment rail for SMEs, gig workers, and cross-border traders. Its success will rely on navigating the evolving regulatory landscape, achieving merchant adoption, and convincing Kenyan users of cKES’s viability as an alternative to traditional mobile money services.
