Kenya, a Den of The Corrupt & Haven for Corruption Deals

Corruption in Kenya only seems to be getting worse with more and more corruption scandals coming to light every day, such as the recent NYS, KPLC, and KPC corruption cases.

However, data from Transparency International’s Corruption Perception Index shows that the situation is getting better.

In its 2017 ranking, Kenya ranked 143 out of 180 countries surveyed. This was an improvement from the 2016 ranking of 145. Kenya’s CPI score also improved in 2017 to a score of 28 from the previous 26. In Sub-Saharan Africa (SSA) Kenya ranked 28 out of the 49 countries that were surveyed. Kenya was also below the SSA regional average of 32. A higher score in the index reflects less corruption and better measures to prevent corruption.

According to the weekly report by Cytonn Investments, the major areas of concern with regard to corruption in Kenya includes;

Fund Misappropriation 

Where funds that are budgeted for particular initiatives and programs are embezzled. This has had the effect of causing delays in projects and programs. The embezzlement of funds has also caused foreign donors to suspend aid and discourages them from funding projects and programs in the country

Kenyan Public Procurement 

Subject to rampant corruption and bribery, most of the corruption scandals in Kenya today are associated to procurement.

Public Service

The competitiveness of Kenya’s business environment is impeded by rampant public service corruption. Complying with administrative requirements takes a lot of time and is plagued by red tape where bribes have to be given to get licenses.

Land Administration 

There is a very high risk of corruption in Kenya’s land administration.

Customs Administration 

Companies face a high risk of corruption in Kenya’s customs administration.

The report notes that Kenya has made significant strides by instituting legislation criminalizing corruption which includes the following:

• Anti-Corruption and Economic Crimes Act 2003 and Penal Code criminalize corruption, active and passive bribery, bribing of foreign officials, money laundering, abuse of office, extortion, conflict of interest, bid rigging and bribery involving agents.

• The Bribery Act of 2016 which criminalizes primarily private sector bribery, broadly defined as “offering, promising or giving a financial or other advantages to another person”, which may include facilitation payments. The Act imposes a duty on public and private entities to have appropriate anti-bribery procedures in place.

• Public Officers Ethics Act 2003 sets rules for transparency and accountability, as well as gifts and hospitality. Every public officer is required to declare their income, assets, and liabilities every two-years.

• Public Procurement and Disposal Act prohibits corruption in public procurement.

• Finance Act 2006 provides for measures against tax fraud and guidelines on tax administration; it also provides sanctions on corrupt practices.

• Service Commissions Act has a Code of Regulations for civil servants that require meritocratic recruitment and promotion of public officials.

• Access to Information Act 2016 provides a framework to facilitate access to information held by private bodies and promote routine and systematic information disclosure by both public service and private service.

The Kenyan Government, while strengthening its mechanisms for crime detection and prosecution, has also empowered its citizens in addressing and reporting corruption issues. The Anti-Corruption and Economic Crimes Act and the Witness Protection Act provides for protection of whistle-blowers and forbids any disciplinary action to be taken against any private or public employee who assists an investigation or discloses information for such an investigation.

Kenya had shown great commitment by strengthening its institutions to fight corruption. The country has already established a multi-agency framework that brings together relevant law enforcement agencies in its fight against corruption.

According to the Ethics and Anti-Corruption Commission 2016-2017 annual report, the challenges faced in the fight against corruption include;

1. Inadequate financial capacity and budget constraints. Since the EACC relies on funding from the government, the money allocated to the commission to carry out its activities is not enough to meet the demand for the commissions’ services countrywide,
2. Inadequate capacity in terms of human resources as there needs to further devolve the commission’s services to respond to an increasing number of corruption reports. The shortage of staff was also aggravated by a high staff turnover attributed to the remuneration package not been enhanced over the last 13-years,
3. A slow judicial process and adverse court decisions. The judicial process and the adjudication of cases are still slow, with some corruption cases stretching back more than 10 years. EACC was affected by adverse judicial decisions that stopped investigations or prosecutions. This results in the cases investigated by the commission taking too long to be heard in court or having investigations or prosecutions terminated by the courts,
4. Weak legal framework, such as the Ethics and Anti-Corruption Commission Act, 2011, and the Leadership and Integrity Act, 2012, that have been watered down by legislators. There is also no political goodwill to fight corruption and unethical conduct in Kenya,
5. The lack of the National Policy on Anti-corruption as it has not been finalized, which has made the efforts of the commission and other organization uncoordinated and varied. Areas that would have benefited from an integrated approach such as investigations and asset recovery are affected,
6. The Commission does not have powers to enforce implementation of its corruption prevention recommendations. Additionally, the inability to enforce codes of conduct in the public service has made it difficult to curb corruption in the public sector,
7. There has been the politicization of the leadership and integrity mandate of the commission,
8. County Governments have been reluctant to mainstream the integrity and anti-corruption agenda,
9. There are an entrenched corruption and unethical culture in the public service, and,
10. There is also a lack of proper wealth declaration management and administrative procedures and the society appears to tolerate corruption and unethical conduct.