March 29, 2016
A string of high profile investigations linking several commercial banks to alleged corruption and tax evasion syndicates has put lenders in a tight spot yet again.
Several banks are under investigations after a major tax evasion ring was busted at a border entry point. The racket, said to cost the government over Sh120 million in unpaid import duties at Namanga border post, comes barely a month after a similar incident was discovered at the Port of Mombasa.
Two Equity Bank staff members and an unnamed number of the Kenya Revenue Authority (KRA) personnel allegedly aided traders at the Namanga border post to import goods without paying duty, depriving the country revenue of more than Sh100 million.
Analysts say this is happening despite Kenya having a fairly advanced — by many global standards — anti-money laundering and counter-terrorism financing regulatory and legal regime.