How Kenyans Lost Money in 2024: A Breakdown

Kenyans experienced significant financial losses across banks, mobile money platforms, SACCOs, and pension schemes in 2024, according to the Kenya National Bureau of Statistics (KNBS) through its FinAccess Report.

The report reveals that fraud, both internal and external, was the leading cause of money loss, alongside accidental transactions.

1. Banks

Bank users reported multiple ways in which they lost money:

• Internal Fraud: Accounted for the majority of cases (56.5%), indicating serious breaches within banking institutions.
• External Fraud: Made up 19.6% of losses, involving scams and unauthorized access by outsiders.
• Accidental Transactions: Sending money to the wrong recipients caused 13.9% of the losses.
• Agent Fraud: Fraudulent activities by banking agents were responsible for 7.9% of reported cases.

2. Mobile Money

For mobile money users, accidental sends were the most common reason for financial losses, contributing to 70% of cases.

• External Fraud: Accounted for 19.5% of losses, where fraudsters tricked users into sharing sensitive information or transferring money.

3. SACCOs

Losses in SACCOs were predominantly linked to fraud:

• Internal Fraud: The leading cause, responsible for a shocking 75.1% of cases, highlighting governance issues within cooperatives.
• External Fraud: Constituted 10.1% of losses.

4. Pension Schemes

Pensions were not spared from fraudulent activities:

• Internal Fraud: Accounted for 66.1%, pointing to theft or embezzlement within institutions managing pension funds.
• External Fraud: Contributed to 14.6% of reported losses.

Key Takeaways

• Fraud at the Core: Internal fraud was a pervasive issue across financial services, especially in SACCOs and pension schemes.
• Accidental Transactions: Mobile money services saw a high prevalence of accidental sends, underscoring the need for user education and better transaction confirmation mechanisms.
• Trust at Stake: The high rates of fraud and losses may erode public confidence in financial institutions and mobile money platforms.

The report serves as a wake-up call for improved security measures, transparency, and financial literacy to protect Kenyans’ hard-earned money.