Kenya sets up special unit to combat growing ‘crypto’ fraud

Kenya’s criminal intelligence agency has established a new special unit to crack down on digital asset crime, which cost local investors over $43 million in 2024 and is on track to hit a new record in 2025.

The Directorate of Criminal Investigations (DCI) recently announced the new unit, which it says will conduct a “ruthless” crackdown on ‘crypto’ fraudsters.

“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,” stated Rosemary Kuraru, who heads the forensic lab at the DCI.

The agency also recently launched a new program that seeks to equip investigators with the skills required to pursue ‘crypto’ criminals. Dubbed the “Blockchain and Cryptocurrency Investigation Training Module,” the course was co-funded by the European Union.

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 stated.

The course brought together officials from more than 10 African nations to learn the latest techniques in blockchain forensics and gain practical experience with some of the most advanced tools used to track digital assets.

Kenya’s ‘crypto’ crime skyrockets

DCI’s efforts come amid a continued rise in digital asset crime in the East African nation. An internal report, seen by local newspaper Daily Nation, revealed that Kenyans lost Sh5.6 billion ($43.3 million) in 2024 to ‘crypto’ fraudsters, a 73% spike from the year prior.

In the first ten months of 2025, Kenyans have already surpassed last year’s total, one detective told the paper. The figures are likely even higher, given that most of the crimes go unreported.

Overall, Kenyans lost $231.5 million to cybercrimes last year, placing Kenya among Africa’s biggest hubs for digital crime, Kuraru says.

“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,” she stated.

Authorities have stepped up their clampdown on digital asset fraudsters, with dozens arrested this year.

Two months ago, two men were arraigned in a Nairobi court for scamming $119,000 from a local businesswoman under the guise of a digital asset investment. Just weeks earlier, four suspects were arraigned in the same court for defrauding a Nairobi businessman of $100,000. The fraud is expanding beyond the capital, with one man arrested for a $30,000 scam in Nakuru, 100 miles northwest of Nairobi.

In the past three years, the DCI has dealt with over 500 digital asset-related cases.

‘Crypto’ crime is expanding beyond scamming. Last month, a businessman from Northern Kenya was arrested on suspicion of using digital assets to finance terrorism. Weeks earlier, a lawyer from the coastal town of Mombasa had been arrested on similar charges.

This wave of ‘crypto’ crime has become a concern for national security agencies. In his State of Security report, President William Ruto singled ‘crypto’ out as one of the key threats to the digital economy.

“Cybercriminals have been exploiting cryptocurrency platforms for fraud, ransomware payments and anonymous transactions, thereby fuelling cybercrime — a threat to our national security,” he told lawmakers.

$40 billion lost

The rise in ‘crypto’ crime has mirrored Kenya’s skyrocketing digital asset adoption, with over six million Kenyans reportedly owning digital tokens. The scammers target novices with claims of being trading experts who can deliver outsized profits.

It also comes despite the inauguration of a comprehensive virtual asset service provider (VASP) Bill that finally legalizes digital asset activity in the country. The bill requires all VASPs to be licensed, but the central bank says it has yet to issue any new licenses under the regime.

Globally, digital asset criminals stole over $40 billion in 2024, an investigation by Chainalysis revealed. The loot accounted for 0.14% of all ‘crypto’ transactions.

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