REGULATION | ‘Proceeds of Crime Are Laundered and Concealed Within Real Estate or Cryptocurrency in Kenya,’ Says Kenyan Director of Criminal Investigations (DCI)

At a pivotal Financial Investigations & Asset Recovery Workshop held at the Kenya School of Government, DCI’s Director of Investigations, Mr. Komesha, reiterated the Directorate’s unwavering commitment to pursuing financial crime – covering money laundering, terrorism financing, and organized litigation – via robust parallel investigations.

“Proceeds of crime are no longer hidden under mattresses; they are laundered through complex corporate structures, layered across global bank accounts, and concealed within real estate or cryptocurrency. As the landscape of criminality transforms, so too must our response.”

– Mr. Komesha, DCI

This aligns with DCI’s “Follow the Money” policy and the sharpening of its Financial Investigations Unit, reflecting a strategic pivot to track illicit flows across multiple asset types – and crypto is now central to their radar.

Recent Crypto Crime Trends in Kenya

Kenya’s experience with crypto-enabled crimes is both significant and escalating:

• In March 2025, Nairobi detectives seized two fraudsters who duped a Chinese national of KES 6.5 million (~USD 50,500) through a cryptocurrency scam

• In February 2025, DCI’s own X/Facebook accounts were hijacked to promote a scam “$DCI” token – prompting official cybercrime alerts

• Estimates show Kenyans lost over $120 million to crypto and forex scams in just one year

• Meanwhile, large-scale P2P trading remains prevalent, placing Kenya 21st globally in Chainalysis’ adoption index and 3rd in P2P volume

These trends underscore why regulatory bodies and financial crime agencies are sounding the alarm—and why the workshop’s timing couldn’t be more critical.

Regulatory & Enforcement Landscape

BitKE has previously covered key developments shaping Kenya’s regulatory response:

• In June 2025, the EU designated Kenya as a high-risk AML/CTF jurisdiction due in part to shortcomings in prosecuting money laundering and crypto-related offenses.

• The IMF-backed Technical Assistance Report (Jan 2025) notes that the DCI issued a public alert in February 2024 warning against crypto-platform fraud – which spurred national efforts to finalize crypto regulations by April 2025

• In May 2025, the Kenya High Court ruled Worldcoin’s biometric data collection illegal, a landmark decision reinforcing the risks tied to overlapping crypto and data privacy breaches

These points highlight a policy landscape rapidly evolving – driven as much by international peer pressure (EU/FATF greylisting) as by domestic enforcement and landmark court rulings.

Collaboration: The Key to Success

The workshop brought together top anti-crime institutions, notably:

• Ethics & Anti-Corruption Commission (EACC)
• UNODC African Anti-Corruption Hub
• EU/UNODC PLEAD II Programme
• Global Programme on Money Laundering (GPML)
• National Integrity Academy

Facilitating knowledge exchange and joint operational strategies, these partnerships are vital to mounting a united front.

Bottom Line

Kenya’s anti-money laundering and financial crime apparatus is undergoing a much-needed overhaul:

• Stronger enforcement: DCI is actively pursuing crypto-enabled fraud with new methods.
• Regulatory clarity: Guidance from IMF, CMA, CBK & Treasury aims for enforceable VASP frameworks.
• Capacity building: Cross-institutional workshops are developing skills to match evolving crypto threats.
• International alignment: EU/FATF attention is speeding Kenya’s march toward global AML/CTF standards.

As crypto adoption deepens across Africa, Kenya’s efforts to regulate, investigate, and prosecute crypto-linked crime will be critical in balancing innovation with security.

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