Dj Vnyash
Due to a surge in financial fraud, Kenyans suffered significant losses through Savings and Credit Cooperative Organisations (SACCOs) in 2024. A report by the Kenya National Bureau of Statistics (KNBS) revealed that internal fraud within SACCOs accounted for 71% of these losses.
Additionally, 70% of Kenyans reported losing money through accidental mobile money transfers, either to familiar or unknown recipients. The KNBS report also showed that 19% of mobile money users lost funds due to fraud by service providers, while 15% experienced losses from reversals.
Internal fraud at pension schemes was another major cause of financial loss, affecting 66% of pension plan users. These schemes are designed to help workers save for retirement, but fraud undermined the security of these savings.
Further, 56% of survey participants lost money due to internal fraud at banks, including fraudulent actions by agents and unauthorized reversals. Microfinance Institutions (MFIs) were also a source of loss, with 46% of respondents reporting internal fraud that caused them to lose funds.
Mobile banking users were not exempt, as 37% of those who save via mobile banking platforms experienced losses due to internal issues within the system.
This situation follows a recent report from Interpol, which uncovered a cybercrime wave in Kenya resulting in the theft of Ksh1.1 billion in 2024. The hackers exploited vulnerabilities in banking systems and funneled the stolen money to companies in the UAE, Nigeria, and China, as well as digital asset institutions offering trading and financial services.
Silverio Omari
