Nairobi, Kenya, 28th May, 2026 – Pan-African lawyer and tax justice advocate Dr. Lyla Latif has sounded the alarm on Africa’s hidden fiscal haemorrhage, warning that illicit financial flows (IFFs) and emerging AI‑enabled fraud are draining billions from the continent and deepening its debt crisis.
Speaking at the Sixth Edition of the AFRODAD Media Initiative (AFROMEDI VI) in Nairobi, Latif revealed that Africa loses up to $89 billion annually through illicit flows, from inflated consultancy fees to transfer pricing schemes that strip taxable income.
“You come up to your net profit, which would be basically nothing. And that is what is taxed,” she explained, describing how multinationals manipulate costs to avoid paying their fair share.
Latif cautioned that new digital threats are compounding the problem. In one case, fraudsters in China used AI deepfake technology to create fake digital IDs and siphon off $76 million in tax refunds. “Think about 60, 70, 80, 100 other individuals doing this. That’s a new form of illicit financial flows,” she warned, urging African governments to strengthen oversight as digitalisation accelerates.
She linked these losses directly to Africa’s debt dependence, noting that governments forced to borrow at punishing rates, 11% for Kenya as an African example, compared to 2% for Germany, are sacrificing funds that should go to schools, hospitals, and infrastructure.
Latif’s message was clear: tackling illicit flows and AI‑enabled fraud is not just about plugging leaks, but about achieving debt justice and fiscal sovereignty. She called on journalists to expose loopholes and demand reforms, stressing that without decisive action, Africa will remain trapped in cycles of borrowing while its wealth slips away unseen.
