SMALL and medium businesses in Kenya are losing between Sh2 to Sh15 million on ransom payment every time they are hacked.
For large corporates, the financial hit ranges between Sh20 million and Sh50 million, while for multinationals operating in Kenya, the demand can be as high as Sh100 million.
According to industry experts, the scale and sophistication of attacks have escalated sharply, with hackers encrypting company files with different unlock keys, and businesses are being forced to pay for it.
This saw the country record 4.56 billion attempted breaches on companies in Kenya in just the last quarter of 2025, a 441 per cent increase from the previous quarter.
Founder and CEO Cybersecurity and Business consulting firm Serianu Limited, William Makatiani, says that despite the rising online dangers, cybercrime insurance uptake, which would ideally caution businesses, still remains low.
“For the corporate clients, ransomware is a major issue keeping cybersecurity experts in this country awake all night. An IT manager wakes up, shows up in the office, and finds the entire system has been taken over,” says Makatiani.
He says that a single attack is now powerful enough to cripple an entire company, with attackers locking different data with different unlock keys to reap maximum benefits.
These losses, according to the experts, stem from a combination of escalating expenses that go far beyond the initial breach.
“In some instances, you find that they hack your finance account details and lock them separately from may be those of customers, so you have to pay for both. You open one door, only to find another locked behind it. You realise that paying a ransom only unlocks part of their systems, leaving them trapped in further negotiations,” he added.
Companies are paying hefty ransoms to regain control of their systems, suffering prolonged downtime that freezes operations, and spending millions on data recovery after networks are compromised.
APA Insurance Chief Operating Officer Parul Khimasia, while speaking at the unveiling of a cybersecurity policy, said that businesses are constantly embracing mobile money, cloud computing, e-commerce and digital services, exposing them to cyber risk.
“For most modern businesses, digital infrastructure underpins every function. Without secure systems and reliable data, operations can cease entirely and cripple businesses,” said Khimasia.
APA Apollo Group CEO Ashok Shah noted that cyber risk is no longer confined to the IT department; it is a strategic and board-level issue, as ransom payments have to be approved by the board.
“As Kenya’s digital economy continues to expand, companies must strengthen their resilience to emerging risks. The launch of APA Cyber Insurance reflects a commitment to delivering forward-looking solutions that protect businesses,” said Shah
The financial burden is compounded by the erosion of customer trust, reputational damage, and service outages that can halt business activity for days or even weeks.
The firm warns that without stronger cybersecurity measures and investment in both protection and recovery mechanisms, the cost of digital crime will continue to rise — pushing many businesses to the brink.
The Experts warn that the latest surge is being driven not only by cybercriminals, but by AI-powered attack tools.
These make phishing emails more convincing, impersonation attacks harder to detect, and ransomware more destructive.
