Kenya has been rocked by a controversy surrounding a crypto company owned by Sam Altman, Worldcoin, which has been reportedly collecting biometric data from Kenyan citizens in exchange for cryptocurrency tokens.
According to a joint report on the matter to the speaker of the parliament seen by TechMoran, Ministry of the Interior and National Administration Cabinet Secretary (CS), Kithure Kindiki and the Ministry of Information, Communication and the Digital Economy CS, Eliud Owalo said “The activities of Worldcoin have sparked widespread concerns over data privacy, security, and the legality of its operations. The issue was brought to light when the Honorable John Mukunji, Member of Parliament for Manyatta, sought a statement from the Cabinet Secretaries of the Interior and Ministry of Information, Communication, and the Digital Economy regarding Worldcoin’s data collection practices.”
The statement detailed several key areas of concern, including the steps the government is taking to control data access and storage by foreign entities, the licensing and authorization process for biometric data collection, safety guarantees for data usage, the purpose of the data collection, the source of funds used to compensate participants, and precautions regarding already collected data.
According to the statement, “Worldcoin, a foreign entity, allegedly harvested iris data from Kenyan citizens over three days, offering cryptocurrency tokens worth approximately Sh7,000 in exchange for allowing the scanning of their irises.”
The government officials said Worldcoin was “Found not to be registered as a legal entity in Kenya. The investigations revealed that Worldcoin had contracted a local company, Sense Marketing, to conduct data capture activities in the country.”
Two individuals associated with Worldcoin, Mr Emmanuel Otieno and Ms Rael Mwende, were reported to be in charge of operations and the country management, respectively.
According to the report, both were taken into custody by the Directorate of Criminal Investigations (DCI) for questioning.
It was also noted that a foreign national, Mr Poitr Piwowarczyk, connected to Worldcoin, had entered Kenya on several occasions.
In response to the revelations, the Kenyan government, through the Ministry of Interior and National Administration, suspended Worldcoin’s activities within the country.
The government notes criminal investigations were initiated to verify the legality and authenticity of Worldcoin’s operations, to ensure the safety of harvested data, and determine the intended use of the data.
The Ministry of ICT and the Digital Economy emphasized the need for public safety and financial transaction integrity.
The statement highlighted that until relevant public agencies certify the absence of risks to the general public, all activities of Worldcoin and similar entities engaging with Kenyan citizens should be suspended.
To prevent individuals associated with Worldcoin from leaving the country during ongoing investigations, the Immigration authorities were directed to obtain clearance from the DCI.
The Office of the Data Protection Commissioner had previously raised concerns about Worldcoin’s data processing activities and suspended its operations in May 2022 and subsequently in May 2023.
A registration certificate was issued to Worldcoin in April 2023, signifying compliance with certain data protection regulations.
The government urged vigilance among Kenyans, emphasizing the importance of cybersecurity awareness, data protection, and informed consent.
The joint statement from the Communications Authority and the Office of the Data Protection Commissioner highlighted concerns over cybersecurity, data protection, and consumer rights concerning Worldcoin’s operations.
As investigations continue, the Kenyan government is focused on ensuring data privacy, security, and transparent operations in the digital economy.
Further updates are anticipated as the situation unfolds.