Kenya shuts down Somali remittance firms after Garissa University massacre

13 Somali remittance firms have been shut down following last week’s Garissa University attack by the Al-Shabaab. This happened after Kenyan media on Wednesday reported that dozens of bank accounts had been frozen.

The Daily Nation newspaper confirmed that frozen accounts of 86 individuals and entities’ licences had been suspended after being suspected of financing terrorism in the country, some of which included Somali remittance firms.

Somalia’s Central Bank governor Bashir Issa Ali said that those 13 Somali money transfer firms have been officially notified by Central Bank of Kenya (CBK) about the closure of accounts adding that the move would have a devastating impact in the Kenyan Somali community, numbering just over one million people.

Bashir affirmed that the decision is going to affect Somalis in Kenya more than Somalis in Somalia because the amount of money sent from abroad to Kenya is huge, pointing out that many Kenyan Somalis rely heavily on the service.

The owner of one Somali money transfer firm commented that the Kenyan government has not suspended remittance firms bank accounts but that the CBK had instead revoked their licences. Somalis in Kenya rely on relatives abroad for their basic needs.

Kenya’s Foreign Minister Amina Mohamed told Reuters on Tuesday that Kenya is seeking additional foreign intelligence and security help after the Garissa massacre, the deadliest attack in Kenya since al Qaeda bombed the U.S. embassy in 1998, killing more than 200 people.