Kenya targets illegal crypto in AML crackdown

By Maria Macharia, Kenya Correspondent
Johannesburg, 17 Nov 2025
Crypto-currencies are a target of anti-money laundering efforts by Kenya.
Crypto-currencies are a target of anti-money laundering efforts by Kenya.

Kenya has assured the UN that it is cracking down on illicit crypto currency platforms as part of anti-money laundering (AML) initiatives in East Africa's largest economy.

According to Musalia Mudavadi, Kenya’s prime cabinet secretary, the country is also clamping down on illicit transaction networks, colloquially known as the hawala system.

Hawala is an informal, illegal trust-based money transfer method, particularly popular in communities with limited access to formal banking. The system is often associated with the Islamist Al-Shabaab group.

Mudavadi was assuring Natalia Gherman, United Nations (UN) assistant secretary-general and executive director of the Counter-Terrorism Committee Executive Directorate (CTED), that his country had strengthened its anti-money laundering and counter-terrorism financing systems.

Mudavadi, who is also cabinet secretary for Foreign and Diaspora Affairs, added that the country had enhanced oversight institutions and deepened global partnerships to disrupt illicit financial flows, including those using crypto-currencies, hawala networks and cross-border crime.

After the weekend meeting in Nairobi, Mudavadi said he reaffirmed Kenya’s strong commitment to countering terrorism and preventing violent extremism.

“I also raised concerns over the growing use of encrypted platforms, artificial intelligence-driven propaganda, and social media for recruitment, radicalisation and operational activities,” he said.

Mudavadi told the envoy that Kenya, through the National Counter Terrorism Centre, continued to implement multi-agency strategies supported by expanded training for law enforcement, the judiciary and investigative teams to better detect, disrupt and prosecute terrorism-related crimes.

“Kenya remains an active player in the Global Counterterrorism Forum, UN-IED initiatives, and regional cross-border operations, underscoring our dedication to collective security and regional stability.”

N-IED refers to the UN’s efforts to counter improvised explosive devices (IEDs).

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