UN Report Names Kenya the Hotbed for Illicit Cash Flows in Africa
Kenya has been named as the leading African country with a high record of illicit financial flow (IFF), according to a recent report by a UN agency.
Kenya was ranked 24th globally in the United Nations Conference on Trade and Development (UNCTAD) Economic Development in Africa Report 2020 ahead of Nigeria (34), Angola (35), Egypt (46), Mauritius (51), Cameroon (53), and South Africa (58).
The report further ranked Kenya second on the continent in terms of returned stolen assets as of January 2020. Kenya’s repatriated assets stood at Sh17 billion behind Nigeria (Sh1.4 trillion).
While presenting the report in Nairobi last week, UNCTAD secretary-general Dr. Mukhisa Kituyi said illicit financial flows continue to deny Kenya funds for development.
“Illicit financial flows strip government treasuries of needed resources for development expenditure. The report’s findings confirm that such financial flows are high in Africa and have been increasing over time,” said Kituyi as quoted on The Standard.
He said Kenya and other African nations must review their international taxation system to curb illicit financial flows.
“African countries also need to engage much more in the international arena, including in the reforms of the international taxation system, to make it more relevant to the challenges Africa faces in the 21st Century.”
Africa loses Sh8.9 trillion annually in capital flight, which is more than the Sh4.8 trillion the continent receives in overseas development aid and Sh5.4 trillion in foreign direct investment each year, the report further notes.
Past reports have ranked Kenya as the leading African country as far as money laundering and tax evasion is concerned, making it an avenue for transiting illicit financial flows.
The UN report adds that graft and embezzlement of public funds by government officials abets illicit financial flows (IFF).
“Graft can be an enabler of IFFs by compromising the institutions tasked with anti-money-laundering obligations,” it explains in part.
Comments (1)
Kitunyi,a former MP should have named some of the corrupt tax evades starting with himself.How much taxation did he evade for 15 years he was an MP?How much salary hike did he award himself as an MP?Increasing salary for yourself is ABUSE OF OFFICE OFFENSE which is punishable by jail but it should be enhanced to FACONG the FIRING SQUAD.