- Kenya’s banking sector is facing mounting pressure as reported fraud losses rise.
- Mobile and online banking are emerging as key channels exploited by criminals.
- Regional statistics reveal the scale of financial fraud across East Africa.
Kenya’s banking sector lost approximately Ksh1.59 billion to reported fraud in 2024, as increasingly sophisticated cyber threats put pressure on banks to strengthen the protection of customers’ savings, business transactions and personal information.
The Central Bank of Kenya (CBK) reported that banking fraud cases rose from 173 in 2023 to 353 in 2024. The amount exposed to fraud increased from Ksh680.9 million to Ksh1.96 billion, while actual reported losses climbed from Ksh412.5 million to approximately Ksh1.594 billion.
Separately, the Communications Authority of Kenya (CAK) reported more than 11.12 billion cyber threat events in the 2025/26 financial year, an increase from approximately 8.62 billion in the preceding year. These figures measure detected cyber threat activity across monitored systems and should not be confused with successful attacks or confirmed financial losses.
These figures present a growing challenge for Kenya’s financial sector, where millions of people depend on mobile banking, electronic transfers and digital payment services to receive salaries, operate businesses and manage household expenses.
Criminals are also exploiting artificial intelligence (AI) to make their schemes more convincing. AI-generated voices, manipulated videos and personalised messages can help fraudsters impersonate bank officials, relatives, employers and suppliers, persuading victims to transfer money or disclose confidential information.
The challenge is no longer simply how to expand digital banking, but how to ensure that technological progress does not leave customers increasingly vulnerable to criminals.
This issue was highlighted at the Safaricom Cybersecurity Summit in Nairobi, where experts warned that organisations must strengthen their digital defences as cybercrime becomes more sophisticated.
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Mobile banking fraud cases increased from 78 in 2023 to 146 in 2024. Reported losses rose from approximately Ksh182.4 million to Ksh810.7 million.
Online banking fraud cases increased from 19 to 106, with reported losses reaching approximately Ksh111.8 million.
Card fraud losses rose from approximately Ksh15.6 million to Ksh263.3 million, while identity theft losses increased from approximately Ksh32.6 million to Ksh199.1 million.
Computer fraud accounted for 12 cases, with reported losses of approximately Ksh203.4 million in 2024. Internet scams accounted for nine cases, with losses of about Ksh6.1 million.
These figures demonstrate that financial fraud is not confined to one channel. Criminals may exploit compromised devices, stolen identities, deceptive messages, fraudulent payment instructions or weaknesses in digital banking systems.
Notably, the amount exposed to fraud is also different from the amount actually lost. Some suspicious transactions may be blocked or recovered, while others result in financial losses.
Kenya is not alone in confronting financial crime involving digital payments. Uganda and Tanzania have also reported significant losses, although their published statistics cover different categories of offences.
In Uganda, banking fraud cases in 2024 involved approximately Ush5.3 billion. Using an illustrative exchange rate of Ush28 to Ksh1, this represents approximately Ksh189 million.
Uganda’s broader cybercrime losses were estimated at approximately Ush41 billion in 2024, equivalent to about Ksh1.46 billion at the same illustrative exchange rate. This broader figure covers more than banking fraud alone.
In Tanzania, financial fraud involving mobile transactions, bank transfers and ATM withdrawals resulted in reported losses of TSh5.345 billion in 2024. At an illustrative exchange rate of TSh19.5 to Ksh1, the amount was approximately Ksh274 million.
Tanzania’s 2025 crime statistics subsequently recorded 3,424 financial transaction fraud offences, down from 4,091 in 2024. The amount reported stolen was TSh4.779 billion, equivalent to approximately Ksh245 million at the same illustrative exchange rate. The decline in reported cases is encouraging, although the figures do not establish that a particular intervention alone caused the reduction.
By Hillary Muhalya
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