Money Jihad readers may recall that Kenya recently sanctioned 86 people and 13 money transfer companies for their financial ties to the Somali terrorist group al-Shabaab. It has since been revealed that 30 of the sanctioned individuals are sugar smugglers. (Hat tips to Chris Pariso and El Grillo.)
The Star reports:
…A confidential government report seen by the Star says: “Most of the smuggled sugar enters the country [Kenya] from areas controlled by al Shabaab in Somalia. The sugar barons pay illegal levies (or protection fees) to al Shabaab, who in turn uses the proceeds to fund terrorist activities/operations…
Imposing taxes on businesses is a common al-Shabaab tactic. They do it on the charcoal supply chain, the telecommunications sector, the remittance industry, etc. Sugar and charcoal tax rates are often based on the rate set for zakat in the Koran: 2½ percent. Money Jihad has previously covered how lucrative the sugar trade has been for al-Shabaab here.