Uganda Unleashes $5.5B Tokenization Push and CBDC Pilot as Kenya Finalizes Crypto Bill

Uganda has launched one of Africa’s most ambitious blockchain initiatives to date, a $5.5 billion real-world asset tokenization project paired with the country’s first central bank digital currency (CBDC) pilot.

The new initiative, led by the Global Settlement Network (GSN) and Uganda’s Diacente Group, will bring $5.5 billion worth of physical infrastructure assets on-chain. The tokenized portfolio will span sectors such as food production, mining, renewable energy, and trade.

The rollout includes a pilot of Uganda’s digital shilling, a CBDC backed by Ugandan treasury bonds and deployed on GSN’s permissioned blockchain.

The move comes as neighboring Kenya advances its Virtual Asset Service Providers (VASP) Bill, marking a significant moment for digital finance regulation and infrastructure development across East Africa.

From Kampala to Nairobi: East Africa Accelerates Toward a Regulated Digital Economy

According to GSN co-founder Ryan Kirkley, the initiative represents a major step toward linking blockchain technology with tangible development outcomes.

“We’re building infrastructure that goes beyond theory — a programmable economy grounded in real assets, regulatory collaboration, and mass accessibility,” he said.

The CBDC is designed to operate in a regulated environment and comply with international standards, including Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols.

It will be accessible through smartphones and USSD technology, allowing over 40 million Ugandans to transact using a secure, mobile-first digital currency for the first time.

The partnership supports Uganda’s Vision 2040 and aligns with the African Union’s Agenda 2063, as well as the African Continental Free Trade Area (AfCFTA) framework.

The Karamoja Green Industrial and Special Economic Zone (GISEZ), managed by Diacente, is at the core of this rollout and has been designated a national flagship under Uganda’s Karamoja Regional Development Plan (2025–2035).

The project is expected to create over one million jobs and could generate up to $10 billion in annual exports, reinforcing Uganda’s position as a regional digital and industrial hub.

Diacente Group Chairman Edgar Agaba added that the partnership “goes beyond infrastructure,” emphasizing that integrating tokenization and CBDCs into Uganda’s economic roadmap will help attract new capital, empower local industries, and drive sustainable growth.

Meanwhile, Kenya is making progress on its own crypto regulation efforts. The country’s National Assembly has advanced the Virtual Asset Service Providers (VASP) Bill (N.A. Bill No. 15 of 2025) to the third reading stage.

The legislation, which grants oversight powers to the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA), seeks to regulate digital assets and combat risks such as money laundering and terrorism financing.

Kuria Kimani, Chair of the Finance and National Planning Committee, emphasized the bill’s role in protecting Kenya’s monetary system while fostering innovation.

The Treasury will have the authority to issue additional regulations covering stablecoins, tokenization, exchanges, ICOs, and cybersecurity requirements.

If approved, the bill will move to President William Ruto for signature.

Local industry group VACC noted that the legislation places Kenya among Africa’s top five nations advancing comprehensive crypto regulations, opening doors for innovation and investment in the region’s growing digital economy.

Sub-Saharan Africa Emerges as a Global Crypto Growth Leader With $205B in Transactions

Sub-Saharan Africa has emerged as one of the fastest-growing regions for digital asset adoption, according to a September report from blockchain analytics firm Chainalysis.

The region, which includes countries such as Uganda and Kenya, received $205 billion in on-chain value between July 2024 and June 2025, ranking third globally for growth.

Nigeria remains the continent’s leader in digital currency innovation, having launched Africa’s first central bank digital currency (CBDC) in 2021. Ghana and South Africa have completed pilots, while Egypt plans a rollout by 2030.

Kenya and Rwanda are still conducting public consultations. Statista projects that Africa’s crypto user base could surpass 75 million by 2026, generating an estimated $5.1 billion in revenue.

Stablecoins now account for 43% of Sub-Saharan Africa’s total crypto transaction volume, driven by Nigeria, South Africa, Ghana, Kenya, and Zambia.

Ripple recently expanded its U.S. dollar-backed stablecoin, RLUSD, across the continent through partnerships with Chipper Cash, VALR, and Yellow Card. The token is being tested in remittance, treasury, and climate-insurance applications.

In June, Visa also partnered with Yellow Card to expand stablecoin payments across Africa, starting with pilot programs this year.

Regulatory momentum continues to build. Kenya’s proposed Virtual Asset Service Providers Bill is viewed as a potential model for regional frameworks, while Mauritius, Botswana, and several Central African nations have already passed formal crypto laws.

Despite rapid growth, over 80% of intra-African payments still rely on foreign banks, showing the demand for local digital payment infrastructure.

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