Kenya earned about KES 452 billion ($3.5 billion) from inbound tourism in 2024. A large chunk of that cash changes hands in markets where people buy souvenirs, lodges for sleep or entertainment, and on tours because many of those transactions rely on cash. Tourists who do not buy a local SIM face high ATM costs and poor card acceptance.
So, on Monday, I passed by Craft Silicon, a Kenyan fintech startup (its main product is Little Cab, an e-taxi company that thrives in corporate rides), to understand how the company managed to bring together the tourism ministry, the Kenya Revenue Authority (KRA), Kenya Commercial Bank (KCB), and Mastercard at an event that looked more like a plan to appeal to visitors who want to test M-PESA, but want to transact from their debit or credit cards.
The presence of those institutions makes the project more than a product launch since it touches, to some extent, on a private interest in how tourists pay.
Why is this important?
Tourists travelling from abroad (outside Kenya, in this case) often plan to use debit or credit cards. They expect small purchases to work like at home. In Kenya, many small traders still prefer cash, or in most cases, mobile money payments.
That forces visitors into one of three options: buy a local SIM and use mobile money, withdraw cash from an ATM, or haggle over exchange rates at a bureau. Each choice has a cost.
During his presentation at the Monday launch, Craft Silicon CEO Kamal Budhabhatti clarified that its latest app, Tourist App, wants to cut that friction. It targets low-value transactions: think of a KES 500 ($4) souvenir or a $43 entry fee to Nairobi National Park—moments when tourists look for quick payments. If those payments can happen digitally, traders keep more sales, and tourists spend less time hunting for cash.
How the app works
The Tourist app is available on both iOS and Android, and uses a single interface for tourists and merchants. This means merchants do not have to install a separate app or learn a new system.
A merchant with an NFC‑enabled phone can prompt a tourist to tap and pay, while the tourist uses a contactless card or phone wallet. Payments can also be routed to mobile money wallets, till numbers, or bank accounts, reducing the need for cash entirely.
NFC is at the centre of the experience, since both the merchant and the tourist need devices to support it. In effect, the app turns the merchant’s smartphone into a point‑of‑sale terminal. Tourists do not need a Kenyan SIM card to complete a payment, which removes a common barrier to adoption.
Craft Silicon says the service connects to M‑PESA and Airtel Money as local settlement rails. A payment from a foreign card can land in a merchant’s wallet balance in near real time.
Budhabhatti told that the company is working with Safaricom, Kenya’s biggest telco, to add recipient‑name confirmation before money is sent, a feature that mirrors the standard M‑PESA experience and is key to building trust for one‑off transactions.
Who is backing the product?
Craft Silicon is the software house behind Little Cab, a Kenyan ride-hailing and delivery service (I have spoken to over 20 Little Cab drivers, who say they prefer corporate rides).
I spent over three hours at the launch event, and that mix mattered, per my assessment, for two reasons. First, it shows regulators and private firms are watching how tourist spending is tracked. Second, KCB will be a key payments partner, and the bank runs in-house processing capacity in the region, meaning the card flows and the acquiring logic can be routed and settled locally.
Craft Silicon positions the Tourist app as a local solution. The company will charge a 5% fee on each transaction, which is a trade-off. Tourists avoid ATM and exchange costs, and merchants avoid buying new hardware, so it makes sense why Craft Silicon takes a cut.
Business model and numbers
Craft Silicon will charge 5% on each transaction. That rate sits against two common alternatives. ATM withdrawals come with per‑withdrawal charges and exchange spreads. Card acceptance through merchants often involves monthly fees or hardware costs. For small traders, the choice to accept a new payment method depends on cost and simplicity.
A model that sends incoming card funds straight into a local mobile wallet reduces the need for complex merchant acquiring setups. It also moves payment records into systems that are easier to audit. That is likely part of the reason KRA was present at the launch.
Adoption hurdles
There are three immediate obstacles. First, both merchant and tourist phones need near field communication (NFC) tech.
Many basic smartphones do not have it. Second, tourists must download and register on a new app. A short trip reduces the incentive to do that.
Third, trust matters. Tourists want to see the recipient’s name before they send money.
I felt like Budhabatti didn’t have the right answer. Yet he said the app is working with Safaricom to bring name pull into the flow. That is a practical request. M-PESA already displays a recipient name in standard person-to-person transfers. Extending the same confirmation into an app flow for card-to-mobile money transfers will matter for trust and adoption.
Regulatory and tax implications
The launch drew a tax authority presence for a reason (Hon Ndiritu Muriithi was there, image attached). Moving tourist spending from cash into traceable digital records changes how revenue is tracked.
For KRA, that shift can improve visibility of informal sales and help close compliance gaps.
A system that converts card payments into mobile wallet balances touches on card scheme rules and on anti‑money laundering checks. Any solution that moves funds across rails must meet KYC and AML requirements for both the card scheme and the mobile wallet operator. That is likely why the presence of local partners matters. A bank that processes transactions locally can ease some cross‑border friction.
Competition and context
Card schemes and banks are already exploring tap-to-phone products. Quick response (QR) code solutions are also common in other markets. What separates the Tourist app is the focus on converting foreign card payments into local mobile money and doing it with minimal hardware.
That focus is tactical because it assumes the best path to wider acceptance is to fit into existing local habits rather than force merchants to install new terminals. Craft Silicon could scale to other African destinations where mobile money is common if the Tourist app works in markets and tour circuits.
Open questions
Who pays for customer support when a tourist disputes a charge? Budhabbati said the Craft team will handle it.
How are refunds handled when a merchant is not reachable? How will chargebacks move across card rails into mobile wallets?
These are the technical and operational issues that matter more than the demo, but I got the sense that Craft’s partnership with Airtel and Safaricom is not fully done.
Another open question is whether tourists will pay the fee. A 5% charge is higher than typical merchant fees for card acceptance. Tourists may accept the fee when convenience and safety matter, but price-conscious visitors may prefer cash or ATMs.
What success looks like
A useful baseline would be merchant uptake in high tourist footfall areas. Markets, cultural centres, and safari lodges are obvious tests. If the app reduces cash handling and settles into merchant workflows, it could widen digital payment footprints.
On the public policy side (makes sense why a ministry representative attended the event), success will be measured by whether more tourist spending enters formal channels. That matters for tax receipts and for better planning in the tourism sector.
Mark your calendars! Moonshot by is back in Lagos on October 15–16! Meet and learn from Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Get your tickets now: moonshot..com
