Kenya's elite siphoned Sh328 billion of World Bank aid payments to offshore accounts in two decades, a new study shows.
"Elite Capture of Foreign Aid: Evidence from Offshore Bank Accounts", published in February, offers details of how the Kenyan ruling elite connive to enrich themselves by wiring foreign aid money meant to help the vulnerable to foreign offshore accounts.
The study compared data on aid disbursements from the World Bank with foreign deposits from the Bank for International Settlements (BIS), focusing on 22 aid-dependent countries including Kenya, Uganda and Tanzania.
"We document that aid disbursements to the most aid-dependent countries coincide with significant increases in deposits held in offshore financial centres known for bank secrecy and private wealth management.
World Bank Country Director for Kenya Felipe Jaramillo said the report was an independent study conducted by researchers from the lender and other institutions.
