Governance Practices and Illicit Financial Flows in Kenya's Oil and Mining Sectors
DOI:
https://doi.org/10.47672/ajppa.1049Keywords:
Illicit Financial Flows, Governance, Transparency, Stakeholder Accountability, Rule of LawAbstract
Purpose: This study aimed to examine governance practices that oversee oil and mining sectors in Kenya and their efficacy in curbing illicit financial flows.
Methodology: This study adopted a mixed-method research design by targeting stakeholders in the oil and mining sectors within Nairobi County. The study involved 93 respondents consisting of key stakeholders in mid-level and senior management positions in both government and civil society organizations. The quantitative data were collected by filling in semi-structured questionnaires while qualitative data was collected by conducting interviews. The quantitative data are presented using tables, texts, and graphs while qualitative data is presented through the identification of common themes from the responses.
Findings: The findings from qualitative and quantitative data analysis showed that rule of law and transparency have a significant effect on curbing illicit financial flows in Kenya's oil and mining sectors. However, the regression analysis findings showed that the rule of law has the highest influence on the dependent variable, followed by transparency and stakeholder accountability.
A unique contribution to theory, practice, and policy: Most studies have focused on examining extractive governance practices in countries with long histories of extraction, such as Norway and Nigeria while the dynamics in emerging industries, such as Kenya, remain largely unexplored, especially in addressing the challenge of illicit financial flows. This study will contribute to the existing literature in examining the capacity of existing regulatory and institutional frameworks in emerging economies such as Kenya, in combatting illicit financial flows in their oil and mining sectors.
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