Kenya’s DCI Takes Action Against Crypto Scams with New Specialized Unit

TLDR

• Kenya’s DCI has established a specialized unit to fight rising crypto fraud, focusing on scams and cybercrimes.
• Crypto fraud losses in Kenya rose 73% in 2024, totaling $43.3 million, with increasing online scams.
• The country processed nearly $2 billion via decentralized platforms in 2024, with 6.1 million users.
• DCI has handled over 500 crypto-related cases in three years, with arrests linked to scams in Nairobi and Nakuru.
• Kenya passed the VASP Bill in 2024, legalizing crypto activity and introducing licensing requirements for platforms.

Kenya’s Directorate of Criminal Investigations (DCI) has set up a specialized unit to tackle rising crypto fraud. This decision follows an alarming rise in criminal activities, with investors losing up to $43.3 million. The new unit will focus on crypto-related scams and cybercrimes exploiting online platforms offering anonymity.

Increase in Crypto Fraud Losses in Kenya

The country saw a 73% increase in crypto-related fraud losses in 2024, totaling $43.3 million. This surge in crypto fraud marks a worrying trend, as many Kenyans have fallen victim to online scammers. Rosemary Kuraru, the head of DCI’s forensic laboratory, emphasized the need to act swiftly. She said, “As criminals migrate to digital spaces that offer anonymity, law enforcement must innovate with equal speed.”

In 2024, Kenyans lost $231.5 million to cybercrime, making the country one of the hardest hit in Africa. The rise in crypto scams is tied to the growing popularity of decentralized protocols in Kenya. Last year, Kenyans processed nearly $2 billion via these platforms, with over 6.1 million users.

DCI’s Crackdown on Crypto Fraud and Arrests

Since the beginning of 2025, Kenya has seen an increase in enforcement actions. Dozens of arrests have been made in connection with crypto fraud. Cases reported in Nairobi and Nakuru involved scams ranging from $30,000 to $119,000.

The DCI has already handled more than 500 crypto-related cases over the past three years. Investigators have also pursued a small number of cases involving digital assets linked to terrorism financing. However, these cases are treated separately from fraud investigations, as they are national security matters.

Growing Attention on Crypto Regulation

In response to rising fraud, Kenya has made significant strides in regulating digital assets. In October, our report revealed that the  lawmakers passed a Virtual Asset Service Provider (VASP) Bill, legalizing crypto activity. This bill introduced licensing requirements for crypto exchanges and platforms, although the Central Bank of Kenya has yet to issue licenses.

The government has also introduced a Blockchain and Crypto Investigation Training Module, funded by the European Union. This training equips investigators with essential skills in blockchain forensics and cross-border digital investigations. Rosemary Kuraru stated, “It focuses on investigating digital wallets, exchanges, and applying international best practices in digital forensics.” These regulatory steps aim to foster innovation while ensuring better control over the crypto market in Kenya.

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