Swypt, a pioneering decentralised finance (DeFi) platform, has integrated cKES, Kenya’s first decentralised stablecoin, into Mento Labs.

Pegged 1:1 to the Kenyan shilling, cKES represents a significant milestone in Kenya’s evolving fintech landscape, offering an alternative to traditional mobile money and banking systems.

However, as Swypt expands its reach, it faces new opportunities and challenges shaped by Kenya’s emerging regulatory framework.

The Rise of Swypt and Its Vision for Decentralized Finance

Founded in May 2023 by Davis Thoyah, Swypt was created to streamline peer-to-peer (P2P) cryptocurrency trading and enhance digital payments for small and medium-sized enterprises (SMEs) and cross-border transactions.

After debuting at ETHSafari 2023, the platform officially launched in June 2024, offering an extensive suite of financial solutions, including stablecoin-based transactions designed to improve financial accessibility and efficiency.

The integration of cKES allows users to conduct seamless and cost-effective transactions across borders, catering to Kenya’s growing community of crypto-savvy individuals and businesses.

However, the country’s regulatory landscape is rapidly evolving, and upcoming legislative changes could significantly impact Swypt’s operations and adoption rate.

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Regulatory Shifts and Their Impact on Crypto Businesses

The Kenyan government is actively working on formalising cryptocurrency regulations, with two major legislative reforms set to shape the industry:

1. The Virtual Asset Service Providers Bill (2025): This proposed legislation mandates that cryptocurrency firms establish local offices in Kenya and have executives vetted and approved by regulators. If enacted, the bill would empower the government to license and oversee crypto service providers, ensuring greater accountability but also increasing compliance costs for companies like Swypt.
2. The Finance Act of 2023: This act introduced a 3% tax on income generated from digital assets, including cryptocurrencies and non-fungible tokens (NFTs). While the move integrates digital assets into Kenya’s formal tax framework, it could discourage adoption due to higher transaction costs for users.

Under these new regulations, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) will share oversight of the cryptocurrency sector.

The CBK will regulate service providers dealing with payment and currency transactions, while the CMA will oversee crypto trading platforms and exchanges.

Although these measures could lend legitimacy to the industry, they may also impose new bureaucratic hurdles on decentralised platforms like Swypt.

Navigating the Challenges and Opportunities

For Swypt, these regulatory changes present both opportunities and challenges. Official recognition and oversight could enhance trust in the platform, encouraging wider adoption of cKES and other digital payment solutions.

However, compliance with new local office requirements and executive vetting may introduce additional administrative burdens and operational costs.

The 3% tax on digital assets poses another challenge. As transaction costs increase, crypto-based payment solutions may become less attractive to cost-sensitive users.

Swypt must navigate these concerns by optimising transaction efficiency and demonstrating the unique value proposition of cKES as a stable, decentralised alternative to traditional banking and mobile money services.

Exploring Opportunities and Insights on Mento Labs

For those interested in the blockchain industry, Mento Labs reviews provide valuable insights into the company’s performance and employee experiences.

If you are considering a role at the company, Mento Labs salary details can help you understand compensation expectations.

Aspiring professionals can explore Mento Labs careers, which offer various opportunities to join a leading blockchain firm. A key innovation from the company is Mento crypto, which plays a crucial role in decentralized finance.

Leadership at the company is spearheaded by Mento Labs CEO, who drives its vision and growth. For the latest updates and discussions, you can follow Mento Labs Twitter for real-time announcements.

Additionally, users can engage with the Mento app, a platform designed for seamless crypto transactions. At the core of its technology lies the Mento protocol, which underpins the company’s blockchain operations and innovations.

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The Road Ahead for Swypt and Kenya’s Crypto Market

Despite regulatory challenges, Swypt remains committed to advancing decentralised finance in Kenya. By positioning itself as a reliable alternative payment rail for SMEs, gig workers, and cross-border traders, the platform aims to drive adoption and integrate cKES into mainstream financial ecosystems.

As Kenya’s fintech sector continues to evolve, Swypt’s success will depend on its ability to adapt to regulatory shifts, foster trust among users, and prove the practicality of decentralised stablecoins. With the right approach, it could play a key role in shaping the future of digital payments in Africa.