GOVERNMENT has ordered the immediate closure of the bank accounts of 85 entities and individuals suspected of financing terrorism.
Those affected include 13 informal money transfer systems (Hawala), individuals and businesses whose assets are also frozen in the government’s latest purge on terrorism.
The Central Bank of Kenya has withdrawn their operating licenses with immediate effect.
The move has stunned many players in the financial sector and also seen the immediate suspension of many foreign exchange bureaus based mainly in Nairobi and Mombasa.
Sources told the Star that Kenya may well have acted on intelligence briefs by the American Central Intelligence Agency and the Federal Bureau of Investigations.
The Hawalas affected include Amal Express Money Transfer, Amana Money Transfer Limited, Bakaal Express Money Transfer Ltd., Continental Money Transfer Ltd., Dahabshill Money Transfer Ltd., and Flex Money Transfer Ltd.
Also suspended are Hodan Global Money Remittance and Exchange Ltd., Iftin Express Money Transfer Ltd., Juba Express Money Transfer Ltd., Kaah Express Money Transfer Ltd., Kendy Money Transfer Ltd., Tawakal Money Transfer Ltd., and UAE Exchange Money Remittance Ltd.
These firms also have branches across the country.
Also on the list are bus companies that ply the Nairobi-Garissa-Wajir route, including E-Coach Company Ltd., City To City Services Ltd., Sabrin Bus Services Ltd., and G-Coach.
An internationally acclaimed Somali scholar, Sheikh Mohamed Abdi Umal, has also seen his account frozen. Ironically, Sheikh Umal was identified by the National Intelligence Service last year in a leaked report as a moderate Imam targeted by al Shabaab death squads for his anti-radicalisation sermons.
Also on the list are vocal Mombasa-based Muslim human rights organisations such as Muslims for Human Rights (Muhuri) and Haki Africa.
Yesterday, hundreds of customers thronged the Hawala offices in Eastleigh and in the city centre, but were shocked when they found them closed and shuttered.
“This is to inform all our esteemed customers that we are closed for business until further notice. This is in accordance with instructions from our regulator, the Central Bank of Kenya,” read one notice by Dahabshill, one of the leading hawalas in the world.
Haki Africa Executive Director Hussein Khalid said they were shocked by the government’s move. “This is unbelievable. All our accounts and transactions are open for scrutiny and we are surprised with the move,” said Khalid. He said they were unaware they were being investigated for any wrongdoing.
A manager of one of the bus companies affected, who declined to be named, dismissed the move.
“This is a government that works on guesswork. We have never been involved in harbouring and transporting of groups or individuals,” he said.
“The roads are vigorously manned by security agents. Our passengers are thoroughly searched. How and when did we engage in terrorism?” he asked.
The government said millions of shillings have been transacted through the system, some of which have ended up in the hands of terrorists and other criminals.
Principal Secretary Treasury Kamau Thugge said, “The actions taken are fully consistent with international and local laws on the prevention of terrorism”.
But the Central Bank of Kenya in June 22, 2015 handed back licenses to the 13 money remittance firms suspended in April.
The lender acquitted them from claims that they are financing Al Shabaab.
The regulator's investigation noted that the firms were operating legally and were observing laid down procedures as stipulated in the money remittance rules.
''They are free to resume with their businesses. They have no links to Al Shabaab. There licenses are reinstated with immediate effect,'' CBK said in a statement.
President Uhuru Kenyatta had earlier ordered CBK to immediately allow those operators back to business.
Among the money remittance firms that are back in business include Dahabshiil Money Transfer Ltd, UAE Exchange Money Transfer Ltd, Kendy Money Transfer, Amal Express, Tawakal Money Transfer and Kaah Express.
Others are Jubba Express, Iftiin Express, Hodan Global, Amana Money Transfer, Bakaal Express, Continental Money Transfer and Flex Money Transfer.
This story has been updated.
