KENYAN BANKS LOSE 1.59 BILLION TO HACKERS

Kenyan banks have lost more than Ksh1.5 billion to hackers in cyber and technology-related fraud, according to the Central Bank of Kenya (CBK), according to the Financial Sector Stability Report 2024.
The report, released in collaboration with the Capital Markets Authority, the Insurance Regulatory Authority, the Retirement Benefits Authority, and the Sacco Societies Regulatory Authority, tracks risks and vulnerabilities across Kenya’s financial system.
According to the report, the number of fraud cases in 2024 more than doubled, rising from 153 in 2023 to 353 in 2024. Moreover, CBK indicated that cybercrime is a growing operational threat to the financial sector, especially as digitization deepens.
“Cyber risk has become one of the largest concerns for insurers, with the increasing frequency and sophistication of cyberattacks.
The growth of digital transformation the widespread use of sophisticated technologies, and the rising value of data and intellectual property make businesses vulnerable to various cyber threats,” part od the report read.
The value of amounts exposed to fraud also increased from Ksh680.9 million in 2023 to Ksh1.9 billion in 2024. Out of this, actual losses absorbed by the sector hit Ksh1.5 billion, compared to Ksh596.4 million in 2023. This means banks suffered more than double the losses in just one year.
According to the CBK report, cyber criminals are targeting financial institutions for financial gain.
“The actual loss following attacks rose from Ksh412 million to Ksh1.5 billion during the period, thus impacting negatively on the profitability of banks and ability to build more capital,” added the report. Hacking is also linked to other weaknesses in the sector, and operational inefficiency and inaccurate assessment of risk are the key challenges for banks and other financial institutions.