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Kenya’s Directorate of Criminal Investigations has established a specialized unit to combat cryptocurrency fraud after local investors lost KES 5.6 billion ($43.3 million) over the past year, marking a decisive shift in the country’s approach to digital asset regulation.
The new crypto crime team will focus on investment scams, fake exchanges, and cyber-enabled fraud as authorities struggle to contain a 73% year-over-year surge in reported losses, according to DCI officials.
According to the DCI, the newly created unit will focus on cryptocurrency scams, cyber-enabled fraud, and related digital offences.
Investigators say the rise of online investment schemes, fake exchanges, and impersonation scams has overwhelmed traditional policing methods.
We are forming a specialised unit to crack down on cryptocurrency fraud, said Rosemary Kuraru, head of the DCI’s forensic laboratory.
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.
Her remarks underline how Kenya crypto regulation is no longer theoretical but operational, with enforcement agencies now receiving specialised mandates.
The urgency behind Kenya crypto regulation reforms is underscored by alarming figures. In 2024, reported crypto-fraud losses jumped 73% year-on-year, reaching $43.3 million.
Total cybercrime losses across Kenya hit $231.5 million, placing the country among Africa’s hardest-hit digital economies.
The proliferation of digital assets has brought both opportunity and peril, Kuraru said. While many Kenyans use cryptocurrency for remittances and alternative financial solutions, thousands have fallen victim to fraudsters, losing billions of shillings.
Although final figures for 2025 have yet to be audited, a senior Kenyan detective disclosed that losses in the first 10 months of 2025 have already surpassed the 2024 total—raising further pressure on Kenya crypto regulation enforcement.
Authorities insist the crackdown is already producing results. Police statements and court filings show dozens of arrestslinked to crypto fraud this year.
High-profile cases reported by Kenyan media include alleged scams worth $119,000, $100,000, and $30,000 in Nairobi and Nakuru.
The DCI revealed it has handled more than 500 crypto-related cases over the past three years.
A smaller subset of investigations has involved alleged use of digital assets in terrorism financing—cases treated separately as national security threats under Kenya crypto regulation protocols.
Digital-asset misuse has now reached the highest levels of government. In his State of Security address to Parliament, President William Ruto warned that crypto-related crime poses a growing danger 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.
The warning has added political weight to Kenya crypto regulation efforts, reinforcing the need for coordinated oversight and enforcement.
For years, Kenya’s crypto market expanded without a dedicated statute. Exchanges, wallets, and peer-to-peer platforms—many operating offshore—served millions of users.
Lawmakers estimate Kenyans processed nearly $2 billion via decentralised protocols last year, involving around 6.1 million users, ranking Kenya third in Africa by on-chain volume.
That legal vacuum began closing in October, when Parliament passed the Virtual Asset Service Provider (VASP) Bill, formally legalising crypto activity and introducing licensing requirements.
The Central Bank of Kenya has confirmed that licences will be issued once implementation guidelines are finalised.
Complementing legislation, Kenya has rolled out a Blockchain and Crypto Investigation Training Module, co-funded by the European Union.
The programme equips investigators with skills in blockchain forensics and cross-border digital probes.
It delved into tracing and analysing blockchain transactions, investigating crimes related to digital wallets and cryptocurrency exchanges, and enhancing cross-border cooperation, Kuraru said.
The message is clear: Kenya crypto regulation aims to supervise innovation—not suffocate it—while drawing a firm line against fraud.
