Safety of depositors’ money in question as hackers’ siphon Sh1.59billion in 2024 alone
Hackers stole a record Sh1.59 billion from Kenya’s banking sector in 2024, highlighting cyber risks as banks and digital lenders become more mobile and digital.
According to the CBK, losses quadrupled from Sh412million in 2023 due to fraudulent wire transfers and late-night mobile fraud.
More than half of the losses were from mobile banking, with weekend password scams targeting millennials.
Bank insurance premiums rose as fraud cases doubled to 353 and cybercrime targets tripled to Sh1.96 billion.
The CBK report highlights how rapid digital adoption has created fertile ground for criminals exploiting SIM swaps, phishing, malware, and identity theft.
Card fraud surged nearly 17-fold to Sh263.3million, computer fraud cost Sh203.4million, and identity theft ballooned six times to Sh199.1million.
With recoveries limited, financial institutions are now paying between Sh80million and Sh400million annually for electronic crime cover under the Bankers Blanket Bond, much of it reinsured overseas. Industry executives warn that underwriting capacity is shrinking as global insurers retreat, tightening pricing and further burdening banks already squeezed by compliance and technology costs.
The trend signals a new frontier of systemic risk. While Kenya’s pioneering digital finance model remains a global benchmark, its very success has opened vulnerabilities that criminals are quick to exploit.
With cyberattacks in the country doubling to 7.96billion last year, banks are being pushed to strengthen security and customer awareness while regulators balance innovation with resilience.
The bigger question is whether lenders can sustain digital trust when margins depend on cutting costs, yet protection now requires escalating outlays in technology, insurance, and consumer education.
