Factors Promoting The Growth Of Money Laundering Practices In Kenya

Abstract

In Kenya, despite efforts to combat money laundering and promote financial transparency, the study's primary aim was to examine the factors driving its persistence. This study analyzed the impact of tax evasion, financial regulations, cross-border trade, and bank failure to detect suspicious transactions on money laundering. Anchored in theories like the Paradox of Blackmail, Crying Wolf Theory, Transparency-Stability Theory, and Economic Theory, a descriptive research design was employed. A target population of 580 respondents from specific institutions was sampled (n=240). Findings indicated positive associations between money laundering and tax evasion (β =0.268), financial laws (β =0.026), cross-border trades (β =0.287), and bank failure to detect suspicious transactions (β =0.136). Recommendations include bolstering tax enforcement, enhancing financial regulations, fostering cross-border collaboration, and investing in bank detection capabilities. Future research avenues encompass in-depth investigations into money laundering schemes, behavioral analysis of money launderers, and the impact of emerging financial technologies on money laundering practices