AMERICAN firms are encountering significant hurdles in securing business opportunities and contracts in Kenya due to demands for bribes from top government officials, according to a recent report released by the US trade office. The report underscores concerns that corruption is hindering foreign investment and damaging prospects for economic growth in the East African nation.
The 2024 National Trade Estimate Report on Foreign Trade Barriers highlights the challenges faced by American businesses seeking government contracts in Kenya, revealing that senior government officials often demand bribes before awarding such contracts. Consequently, these contracts predominantly go to foreign firms willing to comply with such corrupt practices.
‘The contracts are going mainly to foreign firms willing to pay the bribes,’ states the report, emphasising the prevalence of corruption in Kenya’s procurement system.
The report’s authors warn that rampant corruption poses a serious threat to Kenya’s future investment prospects, as businesses and countries wary of engaging in corrupt activities may opt to divert investments elsewhere. The detrimental effects of corruption are evident in various sectors, including procurement and payment systems, where bribery remains a pervasive issue.
Cleophas Malala, secretary general of Kenya’s ruling party, acknowledged the challenges within the country’s procurement system but emphasised President William Ruto’s commitment to combating corruption. ‘We know it’s a challenge to us, but the president is keen on fighting corruption,’ said Malala, highlighting the government’s efforts to address corruption scandals promptly.
However, Kenyan activist Boniface Mwangi offered a contrasting perspective, suggesting that bribery has become ingrained in Kenya’s societal norms, with citizens routinely forced to pay bribes for various services and transactions. Mwangi noted that American businesses are being asked to adhere to established practices in Kenya, where corruption is perceived as a common occurrence.
The report aligns with findings from Kenya’s Ethics and Anti-Corruption Commission, which identified ministries such as interior, health, and transport as particularly prone to corruption. ‘Kenyans pay bribes every day, not because they want to, but because they are forced to,’ emphasised Mwangi, highlighting the pervasive nature of corruption.
Despite these challenges, Malala expressed the government’s commitment to reforming procurement laws to enhance transparency and fairness, thereby creating a conducive environment for investors. However, Kenya’s ranking in the Transparency International corruption index for 2023 reflects the ongoing struggle, with the country placed 126th out of 180 countries, highlighting the persistent battle against corruption.