Kenyan Economy Derailed by Corruption-Forbes Magazine Study

Corruption is the biggest threat to Kenya’s economic growth according to the new study that was conducted by Forbes Magazine and released this week.

The study indicates that corruption in both the public as well as the private sector is the main reason the country is crawling in realizing its full progress in terms of developments.

The study by Forbes Magazine assessed a total of 144 countries in the world where key businesses were put into considerations.

According to the report, Kenya might not realize faster growth as well as poverty reduction because of corruption and as a result of over reliance of some primary goods whose prices have often remained low.

Out of 144 countries, Kenya was at position 108 as the best country for doing business in the world in the year 2015.

In Africa, Kenya was placed at position 15 and this was largely based on the assessing of key business indicators.

Other countries that were ahead of Kenya out of the total 144 were Mauritius at position 37, South Africa at position 47, Cape Verde at position 71, Rwanda at position 72, Ghana at position 79, Senegal at position 80 and Tunisia at position 82.

According to the study, Kenya’s long term position as the economic hub of the East African region is threatened by the frequent terrorist attacks especially from the Alshabaab, poor infrastructure that is widely spread in the country and the high cost of doing business in the country.

In terms of technology development, Kenya was at position 94 out of 144. The country was placed at position 99 out of 144 in terms of investor protection, position 129 out 0f 144 basing on corruption, position 82 in terms of property rights and emerged position 41 basing on the innovation.

The country was placed at position 128 in terms of trade freedom and position 103 in terms of monetary freedom.

Denmark was position one in the world with a population of 5.6 million, 1.1 percent GDP growth, $44,600 per capita as well as trade balance of 6.3 percent.

Chad was the last one in the world with a population of 11.6 million, 6.9 percent GDP growth, $2,600 GDP per capita and a trade balance of -7.8 percent.

In Africa, Mauritius was placed position one with a population of 1.3 million, $18,700 GDP per capita and a GDP growth of 3.6 percent.

Article b y Juma Fred.