Michael Nitschinger's Blog: Session Encryption with Lithium
If you check out the master branch, you can use the new Encrypt strategy to encrypt your session data automatically. This means that you can read and write session data in cleartext and they will be encrypted on the fly before getting stored (in a cookie, for example).
You'll need the mcrypt extension installed for it to work correctly, but it makes storing the encrypted version of your data more or less automatic. Just set up your Session configuration to use it as a strategy and any time you call a "read" or "write" the hard work is handled for you. For those more interests in what's "under the hood" he goes on to talk about how the strategy works, what cipher it uses by default, how to change it and the default string to use in hashing.