the people from the commercial industry to farmers in the countryside. Sarafu a community currency system operated in Kenya, is the most popular, particularly among farmers, who use the currency to buy seeds, fertilizer and supplies as well as to sell their crops.
An attractive feature of this digital currency is that any Kenyan with a mobile phone line can access the system. Sarafu coins are similar to vouchers which can be exchanged for goods and services. Initially a user if given 50 coins for free. Subsequently, they may earn more coins by selling a product or service to another user.
The system was created by American economist Will Ruddick through his non-profit foundation Grassroots Economics. He has been keen in introducing the currency to rural areas such as the town of Kilifi, where farming is a popular source of employment. “I think that’s where there is the most chronic lack of national currency. So, I think what’s happening, we’re filling a gap. People say look, the national ledger system, the national currency it is not available for us. We can’t measure our trade in this thing,” Ruddick said.
According to some experts, such community-focused digital currencies have the potential to expand beyond Kenya, to other parts of the African continent, and across different industries. Nevertheless, in Kenya, at the moment, Sarafu coins will be limited to agriculture production across the nation, particularly away from urban areas.
