Kubernetes, Terraform, and AWS secrets encryption: what teams miss

TL;DR: AWS KMS and Secrets Manager can encrypt secrets for Kubernetes and Terraform workflows, but the underlying problem is broader: NHIs, lifecycle gaps, and multi-environment access complexity still create exposure, according to Entro Security. Native encryption helps, yet governance fails when secret storage is treated as the end state rather than one control in a wider identity model.

NHIMG editorial — based on content published by Entro Security: Secrets encryption on AWS with Kubernetes and Terraform

Questions worth separating out

Q: How should security teams govern secrets in Kubernetes and Terraform environments?

A: Treat secret encryption as one control within a wider NHI programme.

Q: Why do encrypted secrets still create risk in cloud automation?

A: Because encryption protects storage, not entitlement.

Q: What do teams get wrong about secrets rotation in multi-cloud environments?

A: They often rotate the credential but leave the surrounding identity pattern unchanged.

Practitioner guidance

• Separate secret storage from execution identity governance Map every Terraform, Kubernetes, and application identity that can retrieve or decrypt a secret, then restrict each one to the smallest workable secret path and environment scope.
• Audit KMS and Secrets Manager permissions together Review decrypt, get-secret-value, and key usage permissions as one control set so the team can see where a non-human identity can move from ciphertext to plaintext.
• Remove plaintext secrets from code and state artefacts Ensure Terraform code, plan files, and state files never carry live credentials, and move all runtime secret retrieval into controlled execution roles with clear ownership.

What's in the full article

Entro Security's full blog post covers the implementation detail this post intentionally leaves at a governance level:

• Step-by-step EKS secrets encryption setup with eksctl, YAML, AWS Console, and AWS CLI examples.
• Terraform examples that pull JSON-formatted secrets from AWS Secrets Manager and decode them safely into resource configuration.
• Operational notes on IAM permissions for Terraform execution roles and how those permissions affect secret retrieval.
• A cloud-native walkthrough of KMS and Secrets Manager integration that helps teams validate their own implementation choices.

👉 Read Entro Security's guide to AWS secrets encryption with Kubernetes and Terraform →

Kubernetes, Terraform, and AWS secrets encryption: what teams miss?

Explore further

View Full Forum →  |  NHI Foundation Course →  |  Our Services →