Blockchain is changing how African assets can be represented, with legal ownership at the heart of the debate

Real-world asset tokenisation could give more African investors access to property, shares and other assets, but the rights represented by each token must be clearly defined, speakers at the Africa Blockchain Festival 2026 in Nairobi said.

Gideon Gitonga of Block Op Sacco described tokenisation as a way of representing ownership rights on a blockchain ledger. He said the process builds on earlier methods of recording ownership, from physical possession and paper registries to electronic records and shared digital ledgers.

The panel examined how blockchain-based records could widen access to investments while addressing questions about legal ownership, asset verification and investor protection. Gitonga, Eddie Kagho of Untugrow, Dagem Derese of Fanus Markets and Sarah Wahinya of Zcash discussed the structures needed to connect digital tokens with assets in the physical economy.

Tokenisation moves ownership records onto blockchain

Gitonga said a real-world asset can be anything a person owns, including land, shares, bonds or gold. Tokenisation represents the relevant ownership rights digitally, allowing the record to be maintained on a blockchain ledger.

Dagem Derese said an immutable ledger can reduce forgery by making recorded information more difficult to alter. The technology can therefore change how ownership records are maintained and accessed, particularly where several parties need to refer to the same record.

However, Sarah Wahinya said blockchain developers who tokenise an asset do not automatically establish that the underlying asset is real. She called for independent audits and clearer policies defining what token ownership means, alongside broader engagement with people outside the cryptocurrency community.

The distinction is central to the panel’s discussion. Recording a claim on a blockchain and establishing the rights behind that claim are different parts of an asset transaction. For tokenisation to support investment, the digital record must be connected to an identifiable asset and a clear ownership arrangement.

Legal rights matter as much as the token

Gitonga said property used in a tokenisation arrangement can be transferred to a trust, allowing token buyers to become beneficial owners. He said this structure addresses the question of how token holders’ interests in an underlying asset are recognised.

The panel’s discussion placed legal ownership alongside the technical features of blockchain. A digital record can make it easier to track transactions, but investors also need to understand the rights they acquire, how those rights are held and how they relate to the underlying property or other asset.

Wahinya called for clearer ownership policies and independent audits, while Kagho urged investors to conduct basic due diligence before committing money to a project.

Kagho said prospective investors should check whether a project has a physical office, establish who is behind it, examine relevant licences and verify the contract address associated with the token. He stressed that these checks remain important when assessing a real-world asset project.

Derese argued that regulation helps create stability, which in turn supports trust and liquidity. The discussion connected the development of tokenised markets to the legal and institutional arrangements governing the assets themselves.

M-PESA could simplify access to tokenised assets

Gitonga said Block Op Sacco’s tokenised shares, which he called “blocks”, can be purchased through M-PESA. He said users do not need to understand cryptocurrency wallets or interact directly with blockchain technology because the underlying system is abstracted from the customer.

That approach is intended to make the process more familiar to people who already use mobile money but have limited experience with digital asset infrastructure. Instead of requiring every investor to learn how blockchain wallets work, the transaction can take place through a payment method they already recognise.

Gitonga also described tokenisation as part of a wider evolution in how ownership records are maintained, pointing to the possibility of financial institutions operating accounts on-chain behind the scenes.

The example illustrates one of the panel’s main themes: access depends not only on the availability of an asset, but also on how easily people can participate. Familiar payment methods and simpler interfaces could reduce the technical steps involved in buying a tokenised interest.

Fractional ownership and agricultural finance offer new possibilities

Gitonga used the example of a KSh5 million house to explain how tokenisation could allow an investor to participate with a smaller amount of capital. He said a person could own an interest associated with the property using KSh100,000 and receive rental income.

The example formed part of a broader discussion about fractional ownership and ways of opening investment opportunities to people who might not be able to buy an entire asset. The structure of the investment determines the rights held by each participant and how income associated with the asset is distributed.

Kagho cautioned against unrealistic expectations around owning very small fractions of assets. He argued that collective ownership arrangements could be more practical in some cases and pointed to agricultural invoice financing as an area where tokenisation could create opportunities within about three years.

Agricultural invoice financing can connect capital to payment obligations arising from commercial transactions. The panel’s discussion presented tokenisation as a possible way to represent such interests digitally, linking blockchain infrastructure to financing needs in the real economy.

Derese said the potential market for tokenised assets could reach $2 trillion or even $10 trillion by 2030. He linked the development of the market to regulation, stability, trust and liquidity.

Regulation and due diligence remain central to trust

The panel returned repeatedly to the relationship between technical infrastructure and investor protection. Blockchain can provide a shared record of transactions, but the asset, ownership structure and rights represented by a token remain important to the investment.

Gitonga said Kenya’s virtual asset regulatory framework addresses concerns around the market, while his explanation of trust-based ownership focused on how token holders can hold beneficial interests in property. Wahinya called for independent audits and clearer ownership policies, and Kagho emphasised checking the people, premises, licences and contract address associated with a project.

These points reflect the different responsibilities involved in tokenisation. Developers build the technology and represent assets digitally, while the underlying ownership structure determines what investors receive. Investors, meanwhile, must understand the project and the rights attached to the token they buy.

The panel’s message was that tokenisation could widen access to African assets, from property to agricultural finance, while the development of trusted markets depends on clear ownership arrangements, due diligence and regulation.

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