The Central Bank of Kenya (CBK) has reported that a record Sh1.9 billion was stolen from banks in Kenya last year, a 19.4 percent increase from the previous year's Sh1.59 billion. This growing financial pain of cybercrime highlights the need for banks and their customers to be more vigilant. The amount of money lost to fraudsters has been increasing since 2023 when Sh412.47 million was lost.
The CBK has disclosed that reported fraud cases rose to 385 from 353 a year earlier, while the amount exposed to fraud increased to Sh2.03 billion from Sh1.96 billion. The regulator attributes the growing cybercrime threat to the rapid digitalisation of payments and money transfers, which has widened access to financial services but also created more vulnerabilities for criminals to exploit. Cybercriminals are increasingly exploiting loopholes in digital transaction channels.
The CBK has identified various strategies used by crooks to steal from banks and their customers, including SIM-swaps, malware, phishing schemes, and identity cloning. The regulator has noted that perhaps the most significant and emerging operational risk facing the financial sector is associated with cybercrime. The incidences of fraud, data privacy concerns, cyber-attacks, and cybersecurity threats increased in 2025.
The full extent of banks' losses through fraud could be higher because some lenders may opt not to report for fear of reputational damage. Many banks often prefer to quietly reimburse affected customers to avoid triggering panic among depositors. The CBK has stepped up sensitisation and capacity-building initiatives for payment service providers on emerging cyber-security threats, money laundering, and terrorism financing.
Losses through card fraud recorded the sharpest increase in losses, more than doubling to Sh645.2 million from Sh263.3 million, even as reported cases declined to 16 from 24. Cash losses through card fraud overtook mobile banking scams, where Sh634.3 million was lost in the review period, down from Sh810.7 million in 2024. Online banking fraud cases rose to 132 from 106, while losses increased to Sh157.5 million from Sh111.8 million.
The Sh1.9 billion losses to fraudsters represent 93.75 percent of the Sh2.03 billion that was exposed to fraud, meaning that only Sh127.43 million or 6.25 percent was recovered. The recovery level is lower than in the previous year, when 18.8 percent or Sh368.8 million of the stolen amount was recovered. Data from the Communications Authority of Kenya showed the number of cyberattacks targeting internet users in the country more than doubled to 8.62 billion in the year ended June 2025.
The Kenya Bankers Association (KBA) is running a card and online safety awareness campaign dubbed Kaa Chonjo as part of efforts to curb fraud. The CBK has also established a financial stability committee to formulate and implement financial sector policies that can help banks navigate risks coming from highly interconnected, complex, and cross-border operations. Strengthening cyber resilience, supervisory technology, and regulatory frameworks will be critical to preserving confidence in the financial system.
Key points
- Fraudsters stole a record Sh1.9 billion from banks in Kenya last year.
- The amount of money lost to fraudsters has been increasing since 2023.
- The CBK has stepped up initiatives to address emerging cyber-security threats.
