13 money transfer firms closed over links to funding terrorists

Among the notable money transfer companies mentioned were Dahabshill, one of the most important transfer companies across the wider Horn of Africa region. Dahabshill has agent locations and branches in 126 countries worldwide.

Dahabshiil was founded by Mr Mohamed Saeed Duale in 1970. In its remarkable journey, Dahabshiil made banking history and launched the first ever debit card in Somaliland in 2009. Somtel which is a telecommunications company in the Somaliland and East Africa, providing a comprehensive range of mobile voice and data services to over 3 million individual and business customers is also part of Dahabshiil.

Another company mentioned was, Kendy Money Transfer Limited, which launched its money transfer services in Kenya last year in September. The company was offering cross transfer remittances between Kenya, Uganda, Tanzania, Ethiopia, Mali, Guinea Bissau, Benin, Togo, Senegal, Ivory Coast, Niger, Mauritania, Ghana and Gambia.

Other money transfer companies mentioned were Juba Express Money Transfer Limited, Amal Express Money Transfer, Amana Money Transfer Limited, Continental Money Transfer Limited, Bakaal Express Money Transfer and Flex Money Transfer Limited. Others include Hodan Global Money Remittance and Exchange Limited, Iftin Express Money Transfer Limited, Kaah Express Money Transfer, Tawakal Money Transfer Limited and UAE Exchange Money Remittance Limited.

The inclusion of some of the organisations in the list is likely to cause uproar but officials said the decision was final and was arrived at after wide consultations.

Treasury Principal Secretary Kamau Thuge said they had also notified owners of 13 Somali remittance companies whose licenses had been suspended following the massacre. “We did this based on our laws and international laws after it emerged they are financing terrorism. Those affected have been informed,” said Thuge.

At a press conference at Harambee House, 11 Cabinet Secretaries said the closure of the remittance companies was part of efforts to tame terrorism in the country. “These wide-ranging efforts include the freezing of all accounts suspected to have links to the masterminds of the terrorist attack. Members of the public should also be more vigilant to help forestall any acts of terrorism or security breaches,” they said in the statement read by defence CS Raychael Omamo.

The traders using the named money transfer companies were asked to instead use commercial banks as the state clamps down on possible revenue sources and systems that facilitate terror activities in the country.

On February 22, 2015, Foreign Affairs Cabinet Secretary Amina Mohammed said the government did not have a problem with Somali refugees receiving money from their relatives in other parts of the world using the money transfer services, however she said Kenya would be concerned and cautious if money being remitted was used to fund terrorist activities.

Kenya is a key remittance market as it receives, on average, 60 percent of remittances to East Africa and an average of 10 percent of all remittances to the Sub-Saharan region.According to the Central Bank of Kenya, remittances to Kenya increased by 8.6 percent to Sh10.6 billion in May 2014 compared to Sh9.8 billion in May 2013.

The move comes after the Garissa Terror Attack where al Shabaab militia raided Garissa University College and killed 148 people including 142 students, three police officers and three soldiers in a 15-hour siege.