Kenyan banks lost a record KSh1.9 billion to fraud in 2025, highlighting the growing threat posed by cybercriminals targeting financial institutions and customers through digital banking platforms.
Data from the Central Bank of Kenya (CBK) shows that actual losses arising from reported banking fraud cases increased by 19.4 per cent to KSh1.90 billion in 2025, compared to KSh1.59 billion recorded in 2024.
The losses came as the number of reported fraud cases increased from 353 in 2024 to 385 in 2025, reflecting the growing vulnerability of the banking sector to increasingly sophisticated criminal activities.
In its Kenya Financial Sector Stability Report 2025, CBK further revealed that the amount exposed to fraud rose to KSh2.03 billion in 2025, up from KSh1.96 billion the previous year.
The regulator attributed the growing threat to cybercriminals seeking financial gain by exploiting vulnerabilities in banking and payment systems.
Card Fraud Records Sharpest Increase
Card fraud emerged as the biggest contributor to financial losses, with banks losing KSh645.19 million in 2025, compared to KSh263.29 million in 2024.
Interestingly, the number of reported card fraud cases declined from 24 to 16, despite the amount stolen more than doubling during the period.
Mobile banking fraud was the second-largest contributor, accounting for KSh634.25 million in losses, although this represented a decline from KSh810.68 million recorded in 2024.
The number of mobile banking fraud cases also dropped from 146 to 136 during the review period.
Meanwhile, losses arising from online banking fraud increased to KSh157.47 million in 2025, up from KSh111.83 million in the previous year.
Reported online banking fraud cases also increased from 106 to 132, pointing to growing risks associated with digital financial transactions.
Internet Scams and Identity Theft
The CBK report also highlighted a significant increase in internet scams, with reported cases rising from nine in 2024 to 22 in 2025.
Financial losses associated with internet scams surged to KSh86.52 million from KSh6.07 million, representing one of the sharpest increases among the fraud categories.
Computer fraud losses also increased from KSh203.39 million to KSh212.45 million, while the number of reported cases rose from 12 to 16.
Identity theft cases increased from 56 to 63, although the financial losses declined from KSh199.08 million in 2024 to KSh168.17 million in 2025.
CBK Raises Concern Over Growing Cybersecurity Threats
The regulator also cautioned that the increasing use of artificial intelligence, machine learning and third-party technology service providers had introduced additional cybersecurity risks.
According to the report, rising cyber fraud, social engineering scams, phishing attacks and the misuse of emerging technologies could undermine confidence in financial institutions.
The losses also have implications for banks’ profitability and their ability to build capital, as financial institutions are forced to invest more resources in cybersecurity systems and fraud prevention measures.
CBK said it had intensified sensitisation and capacity-building initiatives targeting payment service providers to strengthen their response to emerging cybersecurity threats.
The Kenya Bankers Association has also been promoting safer digital financial transactions through its Kaa Chonjo campaign, which seeks to educate consumers on the secure use of mobile banking, online banking and payment cards.
The latest figures underscore the growing challenge facing Kenya’s banking industry as financial institutions expand digital services while attempting to protect customers’ money and personal information.
