2024

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Security

Kenya’s Directorate of Criminal Investigations (DCI) has announced the establishment of a specialised unit to investigate crypto fraud. The decision was made due to increased criminal activity and mounting losses of up to KES5.6 billion ($43.3 million) among local investors in the past year.
According to the DCI, the new unit will focus on crypto scams and related cyber offences due to criminals increasingly exploiting online platforms that offer anonymity. The agency described the initiative as a “ruthless” crackdown on <a href="https://www.cryptopolitan.com/chinas-yadi-pleads-guilty-to-5bn-crypto-scam/" rel="noopener noreferrer nofollow">crypto fraud</a>.
Rosemary Kuraru, head of the DCI’s forensic laboratory, stated, “We are forming a specialised unit to crack down on cryptocurrency fraud. The DCI is committed to staying ahead of criminal syndicates. As criminals migrate to digital spaces that offer anonymity, law enforcement must innovate with equal speed.”
<h3 id="span-style-font-weight-400-kenya-s-crypto-fraud-in-2025-surpasses-the-2024-total-span">Kenya’s crypto fraud in 2025 surpasses the 2024 total</h3>
The so-called crackdown comes amid a sharp rise in reported crypto-fraud losses. The $43.3 million loss in 2024 represented a 73% year-on-year increase. Overall, Kenyans lost $231.5 million to cybercrime in 2024, ranking the country among Africa’s most affected markets in terms of digital crime losses.
“The proliferation of digital assets has brought both opportunity and peril. While many Kenyans use cryptocurrency for remittances and as an alternative financial solution, thousands have also fallen victim to fraudsters, losing billions of shillings,” Kuraru <a href="https://bits.media/vlasti-kenii-sozdali-spetspodrazdelenie-dlya-borby-s-kriptoprestupnikami/" rel="noopener noreferrer nofollow" target="_blank">said</a>.
Meanwhile, although the DCI has not yet published audited or finalised figures for 2025, a Kenyan detective reported losses in the first 10 months of 2025 to have already exceeded the 2024 total.&nbsp;
On the other hand, authorities say enforcement activity has increased. There have been dozens of <a href="https://www.cryptopolitan.com/spain-detains-crypto-guru-alvaro-romillo/" rel="noopener noreferrer nofollow">arrests linked to crypto</a> fraud this year, as per police statements and court arraignments. Recent cases cited by Kenyan media include alleged scams of $119,000, $100,000 and $30,000 in the main cities of Nairobi and Nakuru.
The DCI said it has handled more than 500 crypto-related cases over the past three years. Separately, investigators have also pursued a small number of cases involving alleged use of digital assets in terrorism financing, which authorities have treated as national-security matters distinct from fraud investigations.
Digital-asset crime has drawn attention at the highest political level. In his State of Security report to parliament, President William Ruto identified misuse of crypto platforms as a growing threat to Kenya’s digital economy.
“Cybercriminals have been exploiting cryptocurrency platforms for fraud, ransomware payments and anonymous transactions, thereby fuelling cybercrime — a threat to our national security,” Ruto stated.
<h3 id="span-style-font-weight-400-kenya-s-shift-to-crypto-regulation-span">Kenya’s shift to crypto regulation</h3>
Over the years, Kenya’s crypto activity grew for years without a dedicated statute. Exchanges, wallets and peer-to-peer platforms served Kenyan users, often from abroad. Volumes rose through retail trading, remittances, merchant acceptance experiments, gaming and token projects.&nbsp;
According to figures presented to Parliament, Kenyans processed close to $2 billion via decentralised protocols last year, with approximately 6.1 million users. This placed Kenya third in Africa in terms of chain volume.
The country has also made huge steps in terms of regulation. As <a href="https://www.cryptopolitan.com/kenya-parliament-approves-crypto-bill/" rel="noopener noreferrer nofollow">reported</a> by Cryptopolitan, in October, the lawmakers passed a Virtual Asset Service Provider (VASP) Bill. It legalised crypto activity and introduced licensing requirements. The Central Bank of Kenya has said it has not yet issued licences under the new framework, pending implementation.
Additionally,&nbsp; the country welcomed the launch of a Blockchain and Crypto Investigation Training Module, co-funded by the European Union. It is equipping investigators with specialist skills in blockchain forensics and cross-border digital investigations.
“It delved into tracing and analysing blockchain transactions, investigating crimes related to digital wallets and cryptocurrency exchanges, applying international best practices in digital forensics and enhancing cross-border cooperation to tackle transnational digital crimes,” Kuraru said. This is to encourage innovation that is supervised rather than outlawed.
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Kenya arms specialized unit to combat crypto fraud

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