The state is growing increasingly concerned about the rising popularity of cryptocurrency among young Kenyans who are turning to digital platforms for income, as recent reports reveal that terrorists are using these same channels to fund their operations.
This alarming trend was highlighted during the third Nairobi Caucus on countering terrorism, organized by the National Counter Terrorism Centre (NCTC). The event brought to light the fact that terrorism networks, both in Africa and globally, are exploiting digital advancements such as cryptocurrency and crowdfunding to finance their activities.
Amb. Dr. Monica Juma, the National Security Adviser to the president, expressed her concern that the focus on countering terrorism financing is diminishing across the continent. She urged the NCTC to remain vigilant in addressing this critical security issue, emphasizing that maintaining focus on this area is essential to thwarting terrorist activities.
Juma praised the timing of the caucus meeting, noting its instrumental role in helping the East African region and the entire continent curb terror threats by disrupting the plans of terrorist groups. She highlighted the importance of quickly understanding the complexities of new technologies and how terrorists are leveraging them.
According to Juma, grasping the evolving tactics of terror groups, especially their use of technological advancements for financing, is crucial for effective counterterrorism efforts.
“This caucus has played a pivotal role in understanding and mitigating terrorism threats in our region, while also offering perspectives that resonate globally, inspired by African experiences and having international impact,” Juma remarked.
To limit terrorists’ access to finances and reduce their operational capabilities, Juma proposed five key recommendations. These included enhancing financial research and collaboration, as well as developing robust and harmonized security and regulatory frameworks to close existing gaps in counterterrorism financing.
She also cautioned young people to be wary of certain digital income sources, particularly cryptocurrency.
“Our youths must be careful with new technology-based income sources like cryptocurrency, as terrorists use such platforms to raise funds for their acts of terror,” Juma warned.
Nancy Muchiri of the Financial Reporting Centre underscored the necessity of financing for successful terrorist operations, citing past attacks in Kenya such as the Dusit 2, Westgate, and Garissa University incidents. Muchiri emphasized that understanding the manifestation of terrorism financing is crucial for countering these threats.
In 2023, Kenya conducted a terror financing risk assessment that detailed how funds are raised, moved, and stored. Muchiri revealed that terror groups are securing funds through both legal and illegal channels, and stressed the importance of identifying and depriving these organizations of their financial resources.
“Terrorist organisations and financiers should therefore be identified and deprived of sources and means to finance and support terrorism activities. This includes proper implementation of targeted financial sanctions against persons and entities designated by the United Nations Security Council and applicable financial sanction regimes,” Muchiri added.
