Business Corruption in Kenya

Kenya's competitiveness is held back by corruption that penetrates every level of society. A w eak judicial system and frequent demands for bribes by public officials lead to increased business costs for foreign investors. One t hird of all firms regularly experience extortion and have to make facilitation payments and give gifts to carry out basic business operations such as obtaining operating licences, construction permits and utility connections. Widespread tax evasion hinders Kenya's long-term economic growth, and fraud in public procurement is rampant. Corruption, active and passive bribery, abuse of office and bribing a foreign public official are criminalised under the Anti-Corruption and Economic Crimes Act 2003 , but facilitation payments are not addressed under law. Adequate enforcement of Kenya's anti-corruption framework is an issue as a result of weak and corrupt public institutions.

July 2015
GAN Integrity Solutions