Kenya equips a dedicated team to fight cryptocurrency scams

crypthub

3 days ago

Specialised Crypto‑Fraud Unit

The Directorate of Criminal Investigations announced a new unit to combat crypto scams after investors lost up to KES5.6 billion ($43.3 m) in 2024. The unit will focus on fraud and related cyber offences that exploit anonymous online platforms. Officials describe the move as a “ruthless” crackdown to stay ahead of criminal syndicates.

Rising Losses and Enforcement

Crypto‑fraud losses jumped 73 % year‑on‑year, and early 2025 figures already exceed the entire 2024 total. The DCI has handled more than 500 crypto cases in three years and made dozens of arrests, including scams of $119 k, $100 k and $30 k in Nairobi and Nakuru. Authorities also pursued a few cases linking digital assets to terrorism financing.

Political and Regulatory Response

President William Ruto warned that crypto misuse threatens Kenya’s digital economy and national security. In October parliament passed the Virtual Asset Service Provider (VASP) Bill, legalising crypto activity and introducing licensing requirements. The Central Bank of Kenya has yet to issue licences under the new framework.

Capacity Building and Future Outlook

The EU co‑funded a Blockchain and Crypto Investigation Training Module to equip investigators with forensic and cross‑border skills. Training covers tracing blockchain transactions, analysing wallets and applying international best practices. The initiative aims to supervise innovation rather than ban it.