Determinants of illicit financial flows in Kenya

Simple item page
dc.contributor.authorKasimu, Faith Nzilani
dc.date.accessioned2023-02-15T07:23:49Z
dc.date.available2023-02-15T07:23:49Z
dc.date.issued2022
dc.descriptionA Research dissertation submitted to the Strathmore University Business School in partial fulfillment for the Master of Science in Development Finance of Strathmore Universityen_US
dc.description.abstractIllicit financial flows remain a key obstacle to Africa’s attainment of the 2030 Agenda and Agenda 2063. Given the multidimensional and transnational nature of IFFs, IFFs have attracted attention globally and are now at the forefront of the international development agenda. Agenda 2030 of sustainable development identifies reduction of IFFs as a top priority in building peaceful societies all around the world. As reflected in Target 16.4 of the SDGs, combating illicit financial flows is a critical element in the global effort in promoting peace, justice and strong institutions. The target aims to significantly reduce IFFs and arm flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime by 2030. The ability to attain the SDGs remains fragile when undermined by IFFs. In light of this, the study sought to examine the determinants of illicit financial flows in Kenya. The independent variables were corruption, political risks, external debt and exchange rate. Inflation and interest rate were used as control variables. Illicit financial flows was the dependent variable which was the core focus of the study. Secondary data was collected for 19 years (January 2003 to December 2020) on a quarterly basis. A descriptive correlational design was used in the study. A time series model was used in analyzing the variables. VECM findings established that corruption lagged for quarter one, two and four had a positive and significant effect on illicit financial flows in Kenya. Political risks had no effect on illicit financial flows in Kenya. External debt lagged in the second, third and fourth quarter had negative and significant effect on illicit financial flows. Lagged exchange rate for quarter one, two and four had a positive and significant effect on illicit financial flows. The study recommends that government should enforce management practices that would deter corrupt practices and prudent financial management guidelines that would enhance management of external debt to curtail odds of illicit financial flows.en_US
dc.identifier.urihttp://hdl.handle.net/11071/13115
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectIllicit financial flowsen_US
dc.subjectCorruptionen_US
dc.subjectPolitical risksen_US
dc.subjectExternal debten_US
dc.subjectExchange rateen_US
dc.titleDeterminants of illicit financial flows in Kenyaen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Determinants of illicit financial flows in Kenya.pdf
Size:
2.83 MB
Format:
Adobe Portable Document Format
Description:
Full - text thesis
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
MDF Theses and Dissertations (2022)