After a decade-long absence, Luno, the UK-based cryptocurrency exchange, has officially returned to Kenya—one of East Africa’s most active crypto markets. First launching in 2013 under the name BitX, Luno exited just a year later in 2014 due to regulatory barriers. Now, with over 15 million global users and licensed operations in South Africa, the company is staging a strategic comeback in Nairobi, aiming to offer safer alternatives to Kenya’s risk-laden peer-to-peer (P2P) platforms.
Why Kenya, Why Now?
Kenya’s crypto ecosystem has grown tremendously. As of 2024, the country is ranked among Africa’s top three crypto markets, alongside Nigeria and South Africa, with an estimated $20 billion in annual transaction volume, according to Chainalysis. The growth has been driven largely by youth adoption, M-Pesa’s mobile money dominance, and the rise of informal P2P trading platforms.
However, these P2P platforms—like Paxful and Binance P2P—while popular, are often unregulated and prone to fraud, price manipulation, and delayed settlements, causing loss of trust among everyday users.
That’s where Luno sees an opportunity.
“We’re not here to compete on hype. We’re focused on safety, transparency, and compliance,” said Apollo Sande, Luno’s Country Manager for Kenya and Uganda. “There’s a generation of users in Kenya who want access to crypto but don’t trust anonymous P2P deals. That’s who we’re building for.”
Betting on Regulation and Safety
While Kenya still lacks a formal crypto licensing framework, a new Virtual Asset Service Providers (VASP) Bill is currently under review by the Capital Markets Authority (CMA) and Central Bank of Kenya (CBK). Luno, having exited during the regulatory uncertainty of 2014, is now confident that engagement with regulators and transparent operations will create a sustainable business model.
Unlike decentralized P2P networks, Luno offers a custodial exchange, meaning assets are held securely, with trades executed instantly and visibly on the platform. The company also provides educational resources, portfolio tracking, and automated recurring buys—all tailored for emerging market users.
With strong competition from Binance, OKX, and local startups, Luno is banking on trust, compliance, and user education to differentiate its offering.
“Kenya is not just another African market—it’s a regional crypto hub. But it needs safer rails,” added Sande.
Luno’s re-entry could signal a new chapter of safer, more inclusive digital finance in East Africa.
