New App Targets Cash-Heavy Tourist Spending in Kenya

Tourists visiting Kenya may soon find it easier to pay for everyday purchases without carrying wads of cash. Despite generating KES 452 billion ($3.5 billion) in 2024, much of Kenya’s tourism economy still runs on cash transactions, a challenge for visitors who face high ATM fees, poor card acceptance and cash-only traders.

To tackle this gap, Kenyan fintech Craft Silicon has rolled out a Tourist App, supported by the Ministry of Tourism, the Kenya Revenue Authority (KRA), KCB Bank Group, and Mastercard. The app transforms merchants’ smartphones into contactless payment terminals, enabling visitors to make direct digital payments with foreign cards. Funds are routed into mobile wallets such as M-PESA or Airtel Money, or into traders’ bank accounts, bypassing the need for a local SIM card.

According to Craft Silicon CEO Kamal Budhabhatti, the service is aimed at low-value payments like souvenirs or park entry fees, where tourists often get frustrated by limited payment options. The company will charge a 5% transaction fee, which it argues is a fair trade-off compared to the costs of using ATMs or currency exchange services.

Regulators see added benefits. By shifting informal cash spending into digital channels, the app could help improve tax compliance across the sector. Still, barriers exist including reliance on NFC-enabled phones, tourists’ willingness to download a new app, and the need for trust-building features like recipient-name confirmation.

Craft Silicon is positioning the Tourist App as a regional solution, with its long-term success resting on whether small traders in busy tourist zones embrace the technology.