Nairobi, Kenya – American businesses are facing challenges in securing government contracts and investment opportunities in Kenya due to the demand for bribes by top government officials, according to a recent report released by the Office of the U.S. Trade Representative. This alarming trend of corruption is not only hindering foreign investment, but also causing concern for the future economic growth of Kenya.
The 2024 National Trade Estimate Report on Foreign Trade Barriers revealed that government contracts in Kenya are primarily being awarded to foreign firms who are willing to pay bribes. This level of corruption has the potential to deter future investment from businesses and countries that prioritize ethical business practices.
Cleophas Malala, secretary general of Kenya’s ruling party, has acknowledged the issue and assured that the government is taking steps to address it. “We know it’s a challenge for us, but the president is determined to fight corruption. As seen in the swift action taken during the KEMSA scandal last year, he will not hesitate to remove any public officer involved in corrupt activities and hold them accountable to the rule of law. Our political party has made it clear that we will not defend anyone involved in corrupt practices.”
A survey conducted by Kenya’s Ethics and Anti-Corruption Commission revealed that the interior, health, and transport ministries are the most corrupt in the country. The survey also showed that the average bribe amount has doubled since 2023. This is a concerning trend that needs to be addressed immediately.
Activist Boniface Mwangi believes that American businesses are simply being asked to follow the norm in Kenya. “Corruption has become a way of life in our country. Kenyans are forced to pay bribes on a daily basis for basic services such as applying for an ID, reporting a crime to the police, or even obtaining a passport. This is why the Chinese have been successful in doing business in Kenya – they are willing to pay to play. The Americans are not being asked to do anything out of the ordinary, they are simply being asked to comply with the corrupt system that exists in our country.”
Last year, the Ethics and Anti-Corruption Commission highlighted the lack of transparency, accountability, and public participation in government projects as contributing factors to corruption. This aligns with the findings of the U.S. trade office report, which also stated that American firms have raised concerns about the complexity and inefficiency of the procurement process in Kenya.
Malala has assured that the government is working towards amending procurement laws to promote transparency and fairness in the system. “We want to ensure that all investors, including American businesses, have equal opportunities to participate in the procurement process. Our goal is to create a level playing field and eradicate corruption from the system.”
Unfortunately, Kenya has ranked low on the Transparency International corruption index for 2023, ranking 126th out of 180 countries. This is a clear indication that the issue of corruption needs to be addressed urgently to promote a conducive environment for foreign investment and business growth.
In conclusion, the U.S. trade office report has shed light on the concerning issue of corruption in Kenya, which is hindering foreign investment and causing harm to the country’s economy. The government’s efforts to combat corruption and promote transparency in the procurement process are commendable, but more needs to be done to create a corruption-free environment for businesses to thrive. It is crucial for all stakeholders, including the government, private sector, and citizens, to work together to eradicate corruption and promote ethical business practices in Kenya. Only then can Kenya truly reach its full potential and attract foreign investment and business opportunities.
