The DCI in Kenya has declared that a new specialized unit will be formed to dive into issues of crypto fraud. They’ve taken this step amid rising crime rates and steep losses, totaling around KES5.6 billion ($43.3 million) for local investors just over the past year.
According to officials from the DCI, this innovative unit will focus on scams specifically targeting cryptocurrency users, alongside other cyber-related offenses as they note criminals are increasingly capitalizing on anonymous online platforms. They emphasize this move is part of a robust approach to tackling crypto fraud.
Rosemary Kuraru, who leads the forensic lab at the DCI, commented,“We’re creating this specialized team to effectively reduce cryptocurrency fraud. The agency is focused on staying several steps ahead of these criminal networks. As fraudsters shift their operations into digital realms that provide anonymity, it’s crucial for law enforcement to adapt promptly.”
Crypto Fraud in Kenya: A Skyrocketing Problem
This crackdown on crypto fraud comes as reports indicate that the losses related to such crimes have significantly surged. The $43.3 million reported in 2024 marks a staggering 73% increase from the previous year. Overall, Kenyans faced cybercrime losses totaling $231.5 million in 2024, placing the country among those severely affected by digital crime across Africa.
“With digital assets becoming more common, there are both advantages and dangers. Many Kenyans utilize cryptocurrencies for remittances or alternative financial routes, but unfortunately, a lot have also fallen prey to fraudulent actors and lost enormous sums,”Kuraru said.
Furthermore, DCI hasn’t yet finalized or published ranked figures for 2025, but one detective noted that losses over just the first ten months of 2025 have already outstripped those recorded in all of 2024.
On a more encouraging note, law enforcement has ramped up its crackdown, resulting in multiple arrests tied to crypto fraud this year, as per statements from police and courts. Recent cases reported by Kenyan media include scams reported as $119,000, $100,000, and $30,000 in areas like Nairobi and Nakuru.
The DCI has been active in dealing with over 500 crypto-related cases during the last three years. They’ve also ventured into a small number of cases related to using digital assets to finance terrorist activities, marking them as matters of national security separate from fraud investigations.
Tackling digital asset-related crime has even gotten the attention of Kenya’s highest political ranks, as President William Ruto addressed this in his State of Security report to parliament. He specifically pointed out how misuses of crypto platforms pose an escalating threat to the digital economy in Kenya.
“Cybercriminals utilize cryptocurrency platforms to engage in fraudulent schemes, initiate ransomware payments and carry out anonymous transactions. This poses a pronounced threat to our national security,” Ruto stated.
Kenya’s Move Towards Regulating Cryptocurrency
Cryptocurrency activity in Kenya has flourished without solid regulations over the years. Various exchanges, wallets, and peer-to-peer platforms catered to Kenyans, often based internationally. Transaction volumes surged thanks to retail trading, remittances, and various pilot projects.
Data presented to Parliament revealed that Kenyans completed nearly $2 billion in transactions using decentralized protocols last year, involving about 6.1 million users, officially placing Kenya in third place in Africa for chain transaction volumes.
Significantly, the country appears to be stepping up its regulatory framework. This past October, lawmakers s ded in passing the Virtual Asset Service Provider (VASP) Bill, officially legalizing crypto operations that include licensing mandates. The Central Bank of Kenya has stated they have yet to issue licenses under this new guideline, still in the implementation phase.
Additionally, Kenya has welcomed the introduction of a Blockchain and Crypto Investigation Training Module, backed by the European Union. This initiative aims to equip investigators with vital skills needed for blockchain forensics and global digital investigations.
“This training covers tracing and analyzing blockchain transactions, delving into crimes surrounding digital wallets and cryptocurrency exchanges, applying top practices in digital forensics, and enhancing international cooperation to tackle cross-border digital crimes,”Kuraru emphasized. This approach aims to offer a supervised way to foster innovation rather than restricting it.
