Uhuru: Lawyers launder criminals' money as politicians recruit gangs

President Uhuru Kenyatta has said lawyers could be abusing privileges to aid big money laundering.

“A section of the legal fraternity is suspected to be used to launder proceeds of crime. The accounts opened by the law firms receive funds from within and without the country,” President Kenyatta said.

The revelation is contained in the State of National Security Report  tabled in Parliament during his State of the Nation address on November 30. It points to why the state is relentlessly pursuing law change for disclosure of suspect transactions.

President Kenyatta said proceeds of crime and organised crimes are disguised at legitimate ventures.

The 2021 report says law enforcement officers profiled foreign nationals involved in tax crimes.

“These foreign nationals enter the country on various work permits after which they open bank accounts and give power of attorney to Kenyans, mainly advocates,” the report reads.

“These business accounts receive multiple large cash deposits allegedly for trade purposes. The funds are accumulated and subsequently transferred to overseas entities.”

The report, a product of the National Security Council, said the accounts are layered through multiple transfers with subsequent cash withdrawals.

“They also use clients’ accounts in which they deposit unexplained large sums of funds. Some of these funds are used to acquire property whose ultimate owners are disguised,” the report reads.

During the address, the President asked MPs to fast-track a law that would require lawyers to disclose transactions suspected to be linked to money laundering.

The Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2021, is due for debate by MPs after they resume sittings in January.

“In the year under review, a trend was also noted whereby suspected illegal proceeds laundered from high-risk jurisdictions are transferred to Kenyan bank accounts disguised as proceeds of tax amnesty or dividends,” the report states.

President Kenyatta's administration also says it seeks to clamp down on money laundering to starve terror groups of cash.

He said terrorists still find their easy way into the country through porous borders where they impose taxes.

Northeastern region has borne the greatest brunt, the report revealed.

"Al Shabaab continues to radicalise and recruit youth into their networks, besides carrying out terrorist attacks," the report read.

The President has also revealed that politicians could be activating organised criminal gangs ahead of the 2022 general elections.

"The period witnessed reactivation of some criminal groups by politicians and increased infiltration of the boda boda sector by gangs,” the President reported.

The state fears that as the country approaches the electioneering period, it is likely that some gangs will attempt to strengthen their capacities by recruiting new members.

“Some may be sponsored by rogue politicians and unscrupulous businessmen to intimidate perceived enemies and competitors,” the report reads.

The President said organised criminal gangs posed security challenges during the period under review. He said Kazi Mtaani may help mve youths from the streets. Otherwise, they would e targeted for recruitment.

At the Coast, gangs on the police radar include Wakali Kwanza, Wakali Wao, Wajukuu wa Bibi, Chafu ya Docks, Warom, Temeke, Watalia, MRC, and Warembo wa Sukari.

Also targeted are the Superpower, 42 Brothers, Taliban, Kamjesh, Hapana Tambua, Gaza, and Kibra Vigilant Security team, which are said to be thriving in Nairobi.

In Nakuru, the security apparatus seeks to weed out gangs like Super Striker and Confirm; whereas Angola, Msumbiji and remnants of the SLDF are watched by police in Western.

Also on government radar are the Kamagira gang in Kiambu and the Mungiki in parts of Central and Rift Valley.

In Nyanza, activities of the Sungusungu and Sangwenya are also being monitored ahead of the elections.

“Most of these gangs are involved in extortion, harassment of locals, house break-ins and robbery,” the President said in the report.

“In addition, some members of criminal gangs are recruited by drug traffickers as conduits for drug peddling.”

The President said the government is on the watch as the gangs are gargling young people aged between 11 and 25 years. they are vulnerable due to unemployment, poverty and marginalisation.

The government considers the Kazi Mtaani programme as one measure to address the threats posed by the criminal gangs. Crackdowns are also being intensified.

The good news is that crime generally declined in 2020 when 71,665 cases were reported ,compared with 2019 when 95,430 cases were reported.

The Security Council attributed the drop to the Covid-19 curfew and other containment measures.

The report also cited proactive initiatives including multiagency collaboration, public policing, and the increased number of police stations in the grassroots. It cited stringent enforcement of the Coid-19 curfew.

Homicide went up by 140 cases,  3,111 compared with 2,971 reported in 2019. Offences against morality increased by 1,102 to 9,153 from 8,051 cases of 2019.

The report further revealed that economic crimes dropped by 1,298 cases, from 4,786 reported in 2019 to 3,488. Cases of home break-ins dropped by 1,724 from 5,976 reported in 2019.

The top three most frequent offences were assault, offences against morality and stealing which accounted for 20 per cent, and 13 per cent, respectively, the report said.

However, when containment measures were eased between January and May 2021, there were 31,550 cases of crime.

The state attributed the surge to resumption of inter-county movements, reopening of businesses,  among others.

(Edited by V.Graham)