Officials in Kenya say the two suspects may have been planning attacks on Israeli, American, British or Saudi Arabian interests in Kenya.
Magistrate Kaire Waweru Kiare said the prosecution has proved beyond reasonable doubt all counts against the two. Kiare said he will give sentences for the two on Monday.
Iranian nationals Ahmad Abolfathi Mohammad and Sayed Mansour Mousavi were arrested in June 2012 and led officials to a 15-kilogram stash of the explosive RDX.
Iranian agents are suspected in attacks or thwarted attacks around the globe in recent years, including in Azerbaijan, Thailand and India. Most of the plots had connections to Israeli targets.
Kenyan anti-terror officials said the Iranians are members of Iran's Islamic Revolutionary Guards Corps Quds Force, an elite and secretive unit.
Police Sgt. Erick Opagal, an investigator with Kenya's Anti-Terrorism Police Unit, successfully asked the court last year to deny the two bail because more than 85 kilograms of the explosive authorities say was shipped into Kenya has not been found.
The two Iranians arrived in Kenya on June 12, 2012 and travelled to coastal city of Mombasa on the same day to receive the explosives, Opagal's affidavit said. They travelled back to Nairobi after receiving the explosive from an accomplice who is still at large, it said. Opagal said the two were arrested on June 19 in Nairobi and led officers to some of the explosives hidden at a Mombasa golf course.
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