We consider the formation and the Kondo effect of local magnetic momen
ts in the Anderson-Hubbard model with off-diagonal disorder. The exist
ence of moments at sites weakly coupled to the environment is deduced
in effective medium approximation. The distribution of moments is calc
ulated both deep in the metallic phase and near the metal-insulator tr
ansition. We discuss the Kondo quenching of the moments and derive a d
istribution of local Kondo temperatures.