Report: Annual Financial Reporting For Religious Organizations To Curb Terrorism Financing

A report has recommended that religious organizations in Kenya submit annual financial reports as part of efforts to curb terrorism financing.

The report titled “Terrorism Financing Risk Assessment for the NPO Sector in Kenya” emphasizes the need for religious bodies to register and maintain accountability for their finances.

Some religious organizations, particularly within the Islamic faith, have been allegedly linked to militant groups like Al-Shabaab.

Al-Shabaab, which originated from the Islamic Courts Union in Somalia, has been classified as a Sunni Islamic terrorist organization. The group pledged allegiance to al-Qaeda in 2012 and continues to seek the overthrow of the Somali Federal Government to establish a fundamentalist Islamic state.

Kenya has suffered devastating attacks from Al-Shabaab, including the Westgate Mall attack in 2013, the Garissa University attack in 2015, and the 14 Riverside Drive attack in 2019.

In October 2016 Militant Islamist group al-Shabab said it killed six Christians in north-eastern Kenya in an attack aimed at forcing them out of the region.

The grenade and gun attack was launched on a residential block in Mandera town when people were sleeping, police said. It was the latest in a spate of deadly attacks targeting Christians in the mainly Muslim region.

In December 2014, al-Shabab killed 38 non-Muslims at a quarry after separating them from Muslim workers. A few months earlier, 28 people were killed after Muslim passengers were split up from the other passengers.

The attack happened as “planned” and was aimed at Christians in Mandera town, a radio station run by al-Shabab has reported. The group wanted non-Muslims to leave what it regarded as Muslim areas, a spokesman told the BBC.

Mandera County commissioner Fredrick Shiswa said the militants had also targeted a telecommunication site, but this was done to divert the attention of the security forces from the “actual attack”. “This must have been planned over a long period… It was executed with a lot efficiency,” Shiswa said in a BBC interview.

The report revealed that the religious organization had little input during the research period.

Also Read: Charcoal, Sugar Smuggling Among Major Sources Of Al-Shabaab Funding – Report

“It is noted that the draft Religious Organizations Bill will establish a regulatory authority for religious organizations, and will require registration and annual financial reporting. It is recommended that the findings and recommendations of this risk assessment are communicated to the Religious Affairs Commission once it is established,” the report reads.

It is further recommended that attempts to engage with the faith-based sector on potential terrorism financing vulnerabilities are resumed outside of the risk assessment process.

The report also identified charcoal and sugar smuggling as key sources of funding for Al-Shabaab, a terrorist group that poses a major threat in Kenya.

It also highlights that non-governmental organizations (NGOs) and private donations play significant roles in financing terrorism.

“Open-source reporting shows that terrorism funds are raised through charcoal and sugar smuggled into Somalia, and there are instances where funds are suspected to have originated outside Kenya and were transferred through banks and mobile money operators,” the report states.

Al-Shabaab continues to exploit ungoverned spaces in Somalia to launch attacks on Kenya. The report notes that Kenya’s unmanned and porous border with Somalia has allowed the group to carry out sporadic attacks targeting law enforcement and civilians along the border, using improvised explosive devices (IEDs) and vehicle-borne explosives.

Major Al-Shabaab attacks in Kenya include the Westgate Mall attack in 2013, the Garissa University attack in 2015, and the 14 Riverside Drive attack in 2019. The report also names other terror groups posing threats to Kenya, including Al-Qaeda and ISIS.

Al-Qaeda was responsible for the 1998 American Embassy bombing in Nairobi. However, Kenyan authorities note that Al-Qaeda’s influence in the region has waned due to Al-Shabaab’s dominance. ISIS, with an active affiliate in Somalia, is assessed as a lesser threat to Kenya.

According to reports from the United Nations Security Council, the ISIS affiliate in Puntland lacks the capacity for significant operations due to continued attacks by Al-Shabaab. The report also warns of potential threats from other regional groups, such as the Allied Democratic Forces and ISIS affiliates operating in Mozambique.