Kenya is ranked position 27 with FSIV of 337 , followed by Liberia which scored 277 and ranked position 38 globally. Other African countries ranked in the report include Mauritius at position 49, South Africa 50, Tanzania at 75 while Ghana, Botswana and Gambia came in at position 95, 103 and 106 respectively

However, the index ranks Kenya below South Africa in share of the global market of offshore financial services. South Africa constitute to 0.18 per cent of global share while Kenya commands a paltry O.04. Mauritius and Liberia hold 0.02 per cent each.

US is leading the world in concentration of international financial centres at 22.3 per cent followed by UK and Germany at 17.37 and 5.13 per cent respectively

According to the Tax Justice Network, the index is a result of over a year of research by a dedicated team using information on the legal, administrative, regulatory, and tax structures of the jurisdictions assessed.

Surveys were sent to the Ministries of Finance and the Financial Intelligence Units of all 112 reviewed jurisdictions which included targeted questions about the jurisdiction’s tax and regulatory system.

 

This ranking is likely to steam opposition against the proposed Nairobi International Financial Centre which anti illicit financial flows crusaders believe will turn Kenya into a tax haven like Panama, Luxembourg and Bahamas

Last year, Jared Maranga, policy-lead tax and investment at Tax Justice Network said that the NIFC law signed by President Uhuru Kenyatta in July last year brings about the issue of secrecy as several provisions relating to its establishment fall short of transparency and accountability.

"It will undermine the raising of revenues domestically, making Kenya a financial secrecy jurisdiction and is subject to abuse given that neither the regulations nor the incentives have been indicated,” said Maranga.

Even so, Treasury CS Henry Rotich has defended the financial hub which is expected to be set up in Upper Hill, saying that it will attract more foreign investors in the country.

Speaking during the launch of Africa Foresight report compiled by Brooking late last month, Rotich said that that the government will increase efficiency in curbing illicit financial flows in its plan to increase domestic revenue to 25 per cent of GDP

According to Africa Foresight report, Sub Sahara Africa loses at least $50 billion (Sh5 trillion) every year to illicit financial flows, mis pricing and other forms of capital flight, with countries like Togo and Liberia losing 94.2 and 83 per cent of total trade to illicit outflows

Generally, 5.3 to 9.9 per cent of Sub Saharan Africa total trade is lost in illicit financial outflows

Even so, the survey ranked Kenya as the least affected country in Africa. Only 0.7 per cent of its total trade is lost to illicit outflows

However, the African Development Bank survey on illicit financial flows in Kenya dubbed 'The High 5' show that the country lost over $10.6 billion in accumulated illicit financial flows, a figure that is equal to 15 per cent of the country's GDP