Offshore Havens Soak Up Nearly a Quarter of Kenya’s Capital Outflows
Kenya’s net capital outflows surged nearly fourfold to KSh 217.6 billion in 2023, as money moved aggressively into offshore financial centers..
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Kenya’s net capital outflows quadrupled to KSh 217.6 billion in 2023, as significant capital moved into offshore financial centers, despite a 28.8% decrease in foreign inflows. This surge highlights Kenya’s increasing role as a capital exporter, with the Isle of Man absorbing nearly a quarter of these transfers.
- Total outflows of foreign assets rose 42.8% to KSh 350.5 billion, with the Isle of Man receiving 22.8%.
- Other significant destinations for outflows included Hong Kong, Mauritius, the United Kingdom, South Africa, and Rwanda.
- The total stock of foreign assets climbed 36.8% to KSh 834.2 billion, with more than half held in regional neighbors like Uganda, Ethiopia, Tanzania, and the Democratic Republic of Congo.
- Kenya's assets in the Isle of Man dramatically increased more than sevenfold to KSh 79.8 billion.
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Kenya Faces Fiscal Risks and KSh 217.6B Capital Outflow as Parliament Debates Aviation Levy - August 2025
Kenya’s net capital outflows quadrupled to KSh 217.6 billion in 2023, with a significant amount moving into offshore financial centers like the Isle of Man, which absorbed nearly a quarter of the transfers. This occurred despite a 28.8% decrease in foreign inflows. Treasury Cabinet Secretary John Mbadi has warned that these escalating fiscal pressures, along with climate vulnerabilities, could undermine the nation's projected economic growth of 5.3 percent. Mbadi noted these risks threaten to derail an otherwise promising recovery. In a related fiscal matter, Parliament is debating the Air Passenger Service Charge (Amendment) Bill, 2025, which would alter how proceeds from the aviation levy are distributed to include the Tourism Fund and the Kenya Meteorological Service Authority.
