Kenyan tycoons hiding over 15 trillion abroad
Kenyan tycoons have stashed more than 15 trillion abroad, American think tank National Bureau of Economic Research (NBER) has unearthed.
About 33% of this money is what is required to clear Kenya's public debt which stand at 5.1 trillion.
The budget for 2018/2019 is about 3 trillion which means the remaining money in offshore accounts can run the country for 3 years.
“Among the countries that created a lot of shell companies (relative to the size of their economy), one finds Jordan, Russia, Taiwan, the U.A.E.,
Venezuela, Zimbabwe and Kenya — which all have high offshore wealth to GDP ratios,” the report says.
A big portion of this money is believed to have been ill-gotten either through tax evasion or as proceeds of corruption.
The Treasury had n the 2017/18 Budget statement asked Kenyans who had concealed money abroad to be repatriated.
The NBER report suggests that the Treasury should introduce more incentives to encourage investments in the country.