Kenya’s mineral-rich landscape is failing to translate into significant economic gains due to illicit financial flows. This is according to a new report by Global Finance Integrity (GFI). Despite the Kenya Mining sector’s potential to contribute substantially to the country’s GDP, it remains a laggard.
The report pinpoints technical and legal loopholes as key enablers of corruption activities. The complex web of corporate structures, coupled with weak regulatory oversight, has made it challenging to identify the ultimate owners of mining companies. The vague context facilitates tax evasion, money laundering, and capital flight.
GFI emphasizes the urgent need for enhanced transparency and accountability in the Kenyan mining sector. The report recommends strengthening data security, establishing robust verification systems, and creating publicly accessible beneficial ownership registries.
While Kenya has made progress in implementing beneficial ownership transparency measures, significant gaps persist. The government must address these challenges to prevent further resource leakage and ensure that the mining sector benefits the entire nation.
By tackling illicit financial flows, Kenya can unlock the full potential of its mineral wealth and channel those resources into critical areas such as infrastructure, healthcare, and education.
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