New Report Identifies Nature of Terrorism Financing in Kenya: Details

NAIROBI, Kenya – A new Terrorism Financing Risk Assessment Report for Non-Profit Organizations (NPOs) in Kenya has revealed how NPOs could potentially be abused to support terrorism financing, particularly in border regions vulnerable to infiltration by terrorist groups like Al Shabaab.

Although evidence of direct abuse remains minimal, the report has highlighted several pathways that could be exploited, underscoring Kenya’s precarious geographical position and the complexities of combating financial misuse within the charitable sector.

The report, which draws on government data, expert opinions, and literature reviews, has assessed the overall terrorism financing threat in Kenya as medium.

However, it has pinpointed Al Shabaab as the primary actor, taking advantage of ungoverned spaces in neighboring Somalia and Kenya’s porous borders to funnel resources.

High-risk areas remain concentrated near the Kenya-Somalia border, where attacks have historically occurred, including the devastating Westgate (2013), Garissa University (2015), and Riverside Drive (2019) incidents.

While Kenya’s government agencies rate the risk of NPO abuse for terrorism financing as low to medium, the report identifies potential vulnerabilities that could be exploited:

Raising Funds for Terrorist Operations: Terrorist groups could exploit NPOs as a cover to raise or channel funds for operations. This includes diverting legitimate donations or leveraging foreign funding for illicit purposes.

Concealing Movement of Funds: Unregulated financial channels such as cash transfers, hawala systems, and non-banking services remain weak spots for oversight.

Diversion of Resources: Funds or resources intended for humanitarian purposes might be diverted—knowingly, unknowingly, or under duress—towards terrorist activities.

Operational Affiliations: There is a risk of terrorists cultivating operational relationships with NPOs or individuals within those organizations.

These threats align with global typologies of NPO abuse identified by the Financial Action Task Force (FATF), such as “sham NPOs” used to raise funds or legitimate organizations manipulated for recruitment and resource diversion.

Despite these potential threats, the report has acknowledged a lack of concrete evidence linking NPOs in Kenya to terrorism financing.

Between 2014 and 2021, no convictions or direct investigations into NPOs for terrorism financing were reported.

Only two cases of money laundering—not terrorism financing—involving NPOs were highlighted.

The findings also reflected varying levels of concern among agencies: law enforcement bodies rate the threat as low, while regulatory authorities view it as a moderate risk.

Kenya’s proximity to Somalia and other unstable regions remains a significant factor.

Experts cited cross-border vulnerabilities as a persistent challenge, especially in areas where terrorist groups maintain influence.

Notably, Al Shabaab continues to exploit weak governance and border security, while financial tools like mobile money remain susceptible to misuse.

While no widespread abuse of NPOs for terrorism financing has been proven, the report calls for strengthened oversight and proactive measures to mitigate risks.

It has several measures including bolstering regulatory frameworks, improving data collection, and fostering collaboration between government agencies and NPOs to prevent abuse without stifling legitimate charitable operations.