Interpol has identified 14 suspects in Kenya allegedly using cryptocurrency to finance terrorism, with four already in custody.
The disclosure came Wednesday as part of a larger crackdown across six African nations that resulted in 83 arrests and flagged 160 additional persons of interest in Angola, Cameroon, Kenya, Namibia, Nigeria, and South Sudan.
According to Business Daily, the Kenyan cases reveal two distinct operations. The first involves a suspected money laundering scheme running through a virtual asset service provider, with potential ties to terrorism financing.
The operation moved approximately $430,000 and implicated 12 people, though only two have been arrested so far. The second case centers on online recruitment, where two individuals allegedly used crypto platforms to radicalize young people from East and North Africa into terrorist organizations.
Investigators traced the recruitment funding through a cryptocurrency trading platform back to individuals in Tanzania.
Terror groups have increasingly turned to cryptocurrency as traditional banking systems tighten oversight. The appeal is that cryptocurrencies like Bitcoin and USDT operate without central monetary authority control and offer pseudonymity through their decentralized structure.
This makes them harder to trace than conventional bank transfers, which trigger suspicious transaction reports. For criminals moving large sums, crypto presents a lower detection risk than formal banking channels.
President William Ruto signed the Virtual Asset Service Providers Act last week, creating the country’s first comprehensive legal framework for cryptocurrency regulation. The law establishes a split regulatory system modeled on approaches used in the US and Britain.
The Central Bank of Kenya will license virtual assets like stablecoins, while the Capital Markets Authority handles exchanges, brokers, and trading platforms.
Both regulators will oversee the full ecosystem, from crypto wallet providers and payment processors to mining operations and initial coin offerings. All operators will need licenses to function legally.
READ: Kenya to Insure Cryptocurrency Risks for the First Time
This regulatory push comes as cryptocurrency adoption grows in Kenya beyond criminal circles. The International Monetary Fund (IMF) recently noted that many Kenyan companies now use cryptocurrencies to pay foreign suppliers, especially during dollar shortages or when the shilling weakens.
This mainstream adoption has increased pressure on the government to formalize cryptocurrency’s role in the economy while simultaneously addressing its exploitation by criminal networks.
