Aid agencies express concern at closure of Money

Embargo: 00:01 GMT April 10th 2015
Somali Lifeline Under Threat
Aid agencies express concern at closure of Money Remittance Providers in Kenya
Nairobi, April 10th, 2015 – On April 7th, 2015 the Central Bank of Kenya (CBK) revoked the
licenses of 13 Money Remittance Providers (MRPs) based in Nairobi, in an effort to
curb the financing of terrorism. This decision came in the wake of the April 2nd, 2015 terrorist
attack that took place at Garissa University College, killing at least 148 people and follows
similar closures over past months in the United States, United Kingdom, and Australia. The
undersigned agencies express their sincere condolences to the victims’ families and the
people of Kenya.
Every year, Somalis from around the world send approximately US$1.3 billion to Somalia to
support families and friends. This represents 24-45 percent of the country’s GDP and more
than all annual humanitarian aid, development aid and foreign direct investment
combined. Studies have shown that money received from overseas is used to meet basic
needs, including food, water, healthcare, and education. Just three years on from a
devastating famine that killed 258,000, Somalia remains in the grips of crisis and one out of
every three Somali families say that without these remittance flows they would not be able to
pay for food, school or basic healthcare.
With the closure of MRPs, Somali families are losing their only formal, transparent and
regulated channel through which to send and receive money. Aid agencies working in
Somalia also risk losing their only means of transferring money to sustain their daily
humanitarian and development operations. Aid agencies use these MRPs to pay salaries,
contractors, rent, and to deliver all aid activities.
Kenya faces a genuine threat of terrorism, which must be tackled. While recognizing
the many challenges faced by the government of Kenya in trying to stem
terrorism, a disruption to flows of genuine remittances to Somalia should be avoided. If
sustained, these closures could prove costly, cause inefficiencies, and at worse force some
aid agencies to close their operations.
Many of the companies whose licenses have been suspended are delivering legitimate,
formal remittances to the country and should be allowed to continue their services. They
should be vetted on an individual basis to ensure that they comply with Kenyan regulations.
Signatory agencies
Adeso, CARE, CEFA, Concern Worldwide, COOPI, DRC, KAALO, Mercy Corps, Mercy-USA
for Aid and Development, NCA, Oxfam, Polish Humanitarian Action, SOLUTIONS FOR
HUMANITY-SOMALIA, VSF Suisse, World Vision Somalia
For more information or to arrange interviews, contact
Adeso: Anne-Marie Schryer-Roy, +254 727 305 525, [email protected]
CARE: Elizabeth White, +254700753037, [email protected]
DRC: Rufus Karanja, +254 724 279 772, [email protected]
Mercy USA for Aid and Development: Jamie Dillon, +254 738594205, [email protected]
Oxfam: Ed Pomfret, +254 706 625 693, [email protected]
World Vision: John Kisimir, +254 708 077 436, [email protected]
Somalia NGO Consortium, Peponi Rise off Peponi Road, P. O Box 14762 - 00800, Nairobi, Kenya, Tel. + 254 (020) 2607110/1
Fax : +254 020 2607112, email: [email protected] Website: www.somaliangoconsortium.org