Kenya's Directorate of Criminal Investigations has established a dedicated unit to tackle surging cryptocurrency scams. This initiative comes amid investor losses reaching $43.3 million in 2024. The move aligns with recent regulatory reforms to foster a safer digital asset environment.
Kenya's authorities are ramping up efforts to curb cryptocurrency-related crimes as fraud losses escalate. The Directorate of Criminal Investigations (DCI) announced the creation of a specialized crypto fraud unit, driven by a 73 percent rise in investor losses to KES 5.6 billion ($43.3 million) in 2024. Criminals are increasingly leveraging the anonymity of online platforms, prompting this focused response on scams and cyber offenses. Officials described the crackdown as "ruthless," aiming to match the evolving tactics of digital crime networks.
Rosemary Kuraru, head of the DCI's forensic laboratory, highlighted the need for law enforcement to innovate alongside criminals. She stressed the importance of specialized skills and advanced tools to address these threats effectively. This announcement follows a Blockchain and Cryptocurrency Investigation Training Module, co-financed by the European Union and involving officials from more than ten African countries. The program covered transaction tracing, wallet investigations, exchange-related crimes, and cross-border cooperation, emphasizing international best practices.
Enforcement has intensified this year, with dozens of arrests linked to crypto fraud, including cases involving alleged losses of $119,000, $100,000, and $30,000. Most prosecutions remain pending. Broader cybercrime losses in Kenya totaled $231.5 million in 2024, with investigators handling over 500 digital asset cases in the past three years.
These measures coincide with key regulatory developments. The Virtual Asset Service Providers Act of 2025 took effect on November 4, following presidential assent on October 15. Overseen by the Central Bank of Kenya and the Capital Markets Authority, the law clarifies that cryptocurrencies are legal but not legal tender, establishing a licensing and supervision framework. No licenses have been issued yet, as regulators prepare implementation. Taxation has also shifted: a 3 percent digital asset transaction tax was replaced by a 10 percent excise duty on exchange service fees, effective July 1, 2025, to promote fairer market participation. Authorities believe this clarity will build trust and support safer growth in the sector.
