KENYA’S EFFORTS TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING: A MIXED BAG

A recent mutual evaluation report has assessed Kenya’s progress in combating money laundering (ML) and terrorist financing (TF). While there are some positive developments, the country still faces significant challenges in preventing and detecting these crimes.

Financial Intelligence Agency

The report notes that Kenya’s financial intelligence agency produces and disseminates financial intelligence to law enforcement agencies. However, it does not adequately analyze cross-border currency reports or obtain supplementary information to enrich its intelligence packages. Moreover, the agency does not make good use of the information it holds, with very few ML investigations triggered by its financial intelligence.

Prosecution of Money Laundering Cases

The country’s prosecution of ML cases is limited, with no successful convictions recorded during the review period. Kenya prioritizes the investigation and prosecution of predicate offenses, such as drug trafficking and fraud, over ML.

Confiscation

Kenya has made some progress in pursuing proceeds of domestic predicate offenses, but it has not pursued confiscation of property of equivalent value. The country’s confiscation results do not reflect its reported risk profile, with most recoveries made from cases of corruption and theft of public funds rather than drug trafficking or other high-risk activities.

Coordination between Authorities

The report highlights the need for Kenya to improve its coordination between authorities and agencies in combating ML/TF. While there is some degree of coordination, it is limited, and the country needs to do more to ensure that its efforts are effective and efficient.

Terrorist Financing

In terms of TF, the report notes that Kenya conducts TF investigations alongside terrorism-related investigations. However, it has not demonstrated a broader range of investigations into different terrorist groups operating in the country or neighboring countries. The agency’s TF investigations are also not integrated into broader counter-terrorism strategies.

Conclusion

The report concludes that while Kenya has made some progress in combating ML/TF, there is still much work to be done to strengthen its legal and regulatory framework, improve coordination between authorities, and enhance its investigative and prosecution capabilities.