Card fraud was the leading source of financial losses from banking fraud in Kenya in 2025, accounting for Sh645.19 million, according to a new report by the Central Bank of Kenya (CBK).
The losses represented a 145 per cent increase from the Sh263.28 million recorded in 2024, despite the number of reported card fraud cases declining from 24 to 16.
Overall, Kenyan banks lost Sh1.9 billion to fraud in 2025, a 19.4 per cent increase from the Sh1.59 billion recorded the previous year.
The CBK’s Kenya Financial Sector Stability Report 2025, released in October 2026, showed that reported banking fraud cases increased by 9.1 per cent, from 353 in 2024 to 385 in 2025.
The amount exposed to fraud also rose to Sh2.03 billion from Sh1.96 billion, pointing to continued vulnerabilities in the banking sector amid growing cyber threats and the increasing use of digital financial services.
“Cybercriminals are primarily motivated by financial gain when targeting financial institutions,” CBK stated in the report.
The regulator warned that the rising losses could affect banks’ financial performance and their ability to strengthen capital reserves.
“The increase in actual losses underscores the continued financial impact of cyber fraud on banks, with potential implications for their profitability and capacity to build capital,” the report stated.
Mobile banking fraud records second-highest losses
Mobile banking fraud accounted for the second-highest financial losses in 2025, although the amount stolen declined significantly during the year.
Banks lost Sh634.25 million through mobile banking fraud, down from Sh810.67 million in 2024. The number of reported cases also fell from 146 to 136.
The amount exposed to mobile banking fraud declined from Sh981.72 million to Sh659.49 million over the same period.
Despite the improvement, mobile banking remained one of the major channels exploited by fraudsters.
Online banking fraud and internet scams increase
Online banking fraud also recorded an increase in both reported cases and financial losses.
Banks lost Sh157.46 million through online banking fraud in 2025, compared to Sh111.83 million in 2024.
Reported cases rose from 106 to 132, indicating an increase in fraudulent activities targeting online banking services.
Internet scams recorded one of the sharpest increases during the review period. Reported cases more than doubled from 9 in 2024 to 22 in 2025.
The financial losses associated with internet scams surged to Sh86.52 million from Sh6.07 million in the previous year.
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Computer fraud and identity theft
Computer fraud cases also increased, rising from 12 in 2024 to 16 in 2025. The associated financial losses climbed to Sh212.45 million from Sh203.39 million.
Meanwhile, identity theft cases increased from 56 to 63 during the year, although the amount lost declined to Sh168.17 million from Sh199.08 million.
CBK attributed the growing threat of cyberattacks to the increasing adoption of digital payment platforms and person-to-person money transfers. System configuration errors and security vulnerabilities made up the largest proportion of reported threats, increasing significantly from about 3.32 billion in 2023/2024 to 8.30 billion in 2024/2025.
The regulator urged financial institutions to strengthen their cybersecurity frameworks, enhance monitoring and surveillance systems, and deepen cooperation among financial sector regulators to tackle emerging cyber threats.
