Treat US concerns about drugs, illicit financial flows with more seriousness
Weak financial regulation and a local drug culture threaten Kenya’s global reputation, deter investors, and fuel violence, unemployment, and economic decline.
The coming clean by Kenyan police about the circumstances surrounding the discovery of an illicit drug making laboratory in Namanga near the Kenya-Tanzania border, and a warning by the United States about the dangers inherent in Kenya’s growing trade with Somalia, amplify the risks associated with East Africa’s appetite for foreign investment and regional economic integration.
According to US authorities, the open trade between Kenya and Somalia could be a trojan horse that is helping launder money, with the popular Hawala money transfer system, being cited a critical cog in the wheel. Hungry for foreign investment and hard currency, East Africa has perhaps opened up too fast for its own good.
