Detectives from the Directorate of Criminal Investigations (DCI) have arrested three people in Diani, Kwale County, seizing KSh1.7 million in high-quality counterfeit currency. The raid on a secret hideout followed weeks of surveillance and forensic investigation into a syndicate suspected of distributing the fake money across Mombasa and the coastal region.

The suspects, identified as Fadhili Lawrence, Atemba Lawrence, and Electrine Okwako, were apprehended in what police described as a crucial blow to a wider criminal network. According to a DCI statement, the fake Sh1,000 notes were discovered packed in a laptop bag and deceptively wrapped with a white ribbon labelled “CBK 1000” to mimic an authentic Central Bank of Kenya bundle.

A Threat to Local Livelihoods

The circulation of counterfeit money poses a direct threat to the economic stability of regions like Diani, which are heavily reliant on tourism and local commerce. Unsuspecting traders and residents risk significant financial losses, undermining confidence in cash transactions that are vital for many small businesses. For a hotelier in Ukunda or a curio seller in Diani, accepting a fake note means a direct loss of goods and revenue—a heavy price in a challenging economy.

The Anti-Counterfeit Authority (ACA) has previously warned that the trade in counterfeit goods, including currency, drains billions from Kenya's economy annually. This illicit trade not only leads to job losses but also deprives the government of essential tax revenue needed for public services.

Heightened Vigilance Urged

Authorities believe the arrested trio are key players in the coastal distribution network and have intensified their search for other members of the syndicate who remain at large. The DCI has urged the public, particularly business owners and mobile money agents, to be extra vigilant when handling Sh1,000 notes.

Key features to watch for on genuine notes include:

• The Watermark: A three-dimensional portrait of a lion's head is visible when held up to the light.
• Security Thread: A distinct interwoven thread that appears as a continuous line. On the Sh1,000 note, it shifts colour when viewed at different angles.
• Rough Texture: The print on President Kenyatta's coat should feel rough to the touch.

The suspects are currently in custody and are being processed ahead of their arraignment in court. The ongoing investigation seeks to dismantle the entire operation to safeguard the integrity of Kenya's currency and protect citizens from fraud.