Illicit Financial Flows in Kenya, Ghana, and Tanzania: Understanding the Law and Opportunities for Reform

This report examines the legal and institutional frameworks in Kenya, Ghana, and Tanzania to curb illicit financial flows (IFFs), identifying their strengths and gaps that facilitate IFFs. It focuses on three prevalent forms of IFFs: tax-related IFFs, corruption, and money laundering. The study highlights the significance of commercial activities, which account for 65% of IFFs from Africa, and emphasizes the need to address aggressive tax planning, transfer pricing abuse, mis-invoicing, and tax evasion. It also delves into corruption within the extractive sectors of Tanzania and Ghana, and the financial and real estate sectors in Kenya, which are particularly vulnerable to money laundering. This report aims to empower civil society organizations (CSOs) and advocacy communities by enhancing their understanding of the legal landscape to effectively combat IFFs, thereby increasing government transparency and accountability in combating IFFs in these countries.