KDF Raises Red Flag Over Global Banking Scams Funding Terrorism

KDF Raises Red Flag Over Global Banking Scams Funding Terrorism

The Kenya Defence Forces (KDF) has issued a stern warning to Kenyans about rising global financial scams that are secretly bankrolling terrorism. These scams, officials say, are becoming increasingly complex, using international banks, cryptocurrency, and the dark web to hide their dirty money trails.

On Monday, Major General John Nkoimo, speaking for Defence Cabinet Secretary Soipan Tuya, painted a grim picture of evolving threats during the launch of a high-level training program on counter-terrorism financing and money laundering.

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“They’re Getting Smarter, So Must We” – KDF Warns

“We must be cognisant that today’s threats continue to evolve rapidly,” Nkoimo said.

He warned that terror groups are now manipulating weaknesses in global banking networks to fund deadly operations.

“These organisations have become sophisticated. They exploit loopholes in financial systems to move money across borders with ease,” he added.

The funds, he said, are then used to destabilise nations, devastate families, and recruit more terrorists.

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Cooperation, Not Isolation, Is the Answer

Nkoimo stressed that Kenya cannot fight this alone. He called for stronger legal expertise, tighter inter-agency coordination, and increased international collaboration.

“Only through global cooperation, intelligence sharing, and harmonised laws can we counter this growing threat,” he urged.

The training program launched Monday is part of a larger effort to build capacity and strengthen Kenya’s national resilience against financial crimes linked to terror.

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Ruto’s New Laws Tackle the Root Problem

To support the fight, President William Ruto recently signed into law two crucial bills:

1. The Insurance Professionals Act – to regulate the insurance industry
2. The Anti-Money Laundering and Combating of Terrorism Financing (Amendment) Act 2025

The second law is particularly critical. It closes loopholes used by criminals to hide money in real estate, shell companies, and secret accounts.

Now, banks must report suspicious activities, track property transactions, and disclose company ownership.

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New Powers to Freeze and Seize Assets

Thanks to the new law, authorities can now freeze or seize assets linked to terrorism more swiftly. The goal is not just to block funding but also to send a clear message: Kenya will not be a safe haven for criminals.

These reforms aim to align Kenya with international standards, especially those set by the Financial Action Task Force (FATF).

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“Our Security Depends on What We Do Now”

The Defence Ministry urged all citizens to be cautious, report suspicious financial activity, and avoid shady online schemes.

“This is no longer just a national threat. It’s a global one. And we must act now,” Nkoimo said.

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KDF Raises Red Flag Over Global Banking Scams Funding Terrorism