Kenya’s Directorate of Criminal Investigations (DCI) has established a specialised unit to investigate cryptocurrency-related offences, after local investors lost KES5.6bn ($43.3mn) to crypto fraud in 2024, according to an internal DCI report seen by the Daily Nation.

The DCI said the new unit will focus on digital-asset scams and related cyber offences as criminals increasingly exploit online platforms that offer anonymity. The agency described the initiative as a “ruthless” crackdown on cryptocurrency fraud.

“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,” said Rosemary Kuraru, head of the DCI’s forensic laboratory.

The announcement follows the launch of a Blockchain and Cryptocurrency Investigation Training Module, co-funded by the European Union, aimed at equipping investigators with specialist skills in blockchain forensics and cross-border digital investigations.

“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 said.

The programme brought together officials from more than 10 African countries, according to the DCI, reflecting growing regional concern over the cross-border nature of cryptocurrency-related offences.

The crackdown comes amid a sharp rise in reported crypto-fraud losses. The KES5.6bn ($43.3mn) lost in 2024 represented a 73% year-on-year increase, according to the DCI figures cited by Daily Nation. A detective quoted by the newspaper said reported losses in the first 10 months of 2025 have already exceeded the 2024 total, though the DCI has not yet published audited or finalised figures for the year.

Overall, Kenyans lost $231.5mn to cybercrime in 2024, according to figures cited by the DCI, placing the country among Africa’s most affected markets by digital crime losses.

“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,” Kuraru said.

Authorities say enforcement activity has increased, with dozens of arrests linked to cryptocurrency fraud this year, based on police statements and court arraignments. Recent cases cited by Kenyan media include alleged scams of $119,000, $100,000 and $30,000 in Nairobi and Nakuru, though prosecution outcomes remain pending.

The DCI said it has handled more than 500 digital-asset-related cases over the past three years. Separately, investigators have also pursued a small number of cases involving alleged use of digital assets in terrorism financing, which authorities have treated as national-security matters distinct from fraud investigations.

Digital-asset crime has drawn attention at the highest political level. In his State of Security report to parliament, President William Ruto identified misuse of cryptocurrency platforms as a growing threat 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 told lawmakers.

The rise in fraud mirrors Kenya’s expanding digital-asset use, with industry estimates suggesting more than 6mn Kenyans hold cryptocurrencies, though no official registry exists. It comes despite the passage of a Virtual Asset Service Provider (VASP) Bill, which legalised digital-asset activity and introduced licensing requirements. The Central Bank of Kenya has said it has not yet issued licences under the new framework, pending implementation.

Globally, criminals stole more than $40bn in digital assets in 2024, equivalent to about 0.14% of all cryptocurrency transactions, according to Chainalysis, highlighting the international scale of the challenge Kenyan authorities say they are seeking to address.