by Laura Darcey
Corruption pervades all levels of Kenyan society and is arguably considered the leading cause of Kenya’s inability to develop beyond a third-world nation. Each year, Kenya loses at least a third of the state budget to corruption – the equivalent of $6 billion – although many believe the actual proportion might be much greater 1 .
Large Scale Corruption
Large scale corruption undermines Kenya’s development into a prosperous state. It subverts the operating of services and institutions, and stifles investments and innovation. Public purchases are made at inflated prices, and fictitious companies are paid for contracts that are never executed. Huge amounts of revenue are lost through corruption, stalling government-funded programmes, hollowing-out institutions and leaving Kenyans with inadequate public services.
Public sector bureaucracy is rife with opportunities for corruption. Accounting firm Price Waterhouse Cooper recently found 4,000 ghost workers on payroll at the City Council of Nairobi, constituting 35% of the 12,000 strong workforces with a monthly bill of approximately US $800,000 2 . These positions had been created by officials responsible for payroll who had colluded with others to fraudulently collect salaries and benefits. These ghost workers inflate the government’s wage bill, wasting public funds, and undermining the efficiency and effectiveness of public service delivery.
In 2020, a media exposé revealed a series of incidents that led to the loss of billions of shillings by the Kenyan Medical Supplies Agency when they purchased medical equipment to combat Covid-19. Funds intended to provide lifesaving support during a global pandemic, instead lined the pockets of corrupt officials. This event was investigated by the Ethics and Anti-Corruption Commission (EACC), who found a number of officers culpable, but to-date, they have not been able to charge them with any crime 3 . The EACC was created to investigate corruption but it lacks the powers of enforcement or prosecution.
Things look unlikely to change under President Ruto. Despite campaigning on a platform which promised to crack down on corruption, since he was elected in 2022 the Director of Public Prosecutions (DPP) has dropped several cases of corruption and human rights abuses against Ruto’s close allies, some of whom he has since appointed to his cabinet 4 . He has also failed to begin a commission of inquiry into state capture under his predecessor, for whom he was his Deputy. It is speculated he is personally fearful of what an inquiry might reveal 5 .
Small Scale Corruption
Petty corruption is also pervasive in Kenya, with citizens regularly asked for ‘a little something’ to get a document stamped, a service provided, or an infraction overlooked 6 . While the amounts demanded may be small, they quickly add up for those living in poverty. According to one study, Kenyans pay on average 16 bribes every week 7 .
The Kenyan Police Service is thought to be the most corrupt institution in Kenya. 75% of Kenyans believe that most or all police officers are corrupt, and 50% admit to paying a bribe to the police. The police force is known to engage in corruption crimes such as false imprisonment, fabrication of charges, and abuse of human rights to extort bribes 8 . When faced with demands for a bribe, there is very little that regular Kenyans can do but pay it.
Corruption and Underdevelopment
Corruption hurts many and benefits only the few. The quality of government goods and services suffers as funds are diverted for private gain. Corruption takes funds from infrastructure which is frequently of a lower standard and often deteriorates quickly or fails to meet safety standards. Economic competition is undermined as jobs or contracts are given to those who pay bribes or have a personal connection to the government. Qualified firms and candidates are turned down from positions and contracts, rewarding undeserving people and creating inefficiencies in the market 9 . International firms are also hesitant to invest in the Kenyan market due to concerns about the reliability of institutions, the rule of law, and the security of their investments.
The unpredictable nature of bribes in Kenya means that business owners have a hard time incorporating them into their cost structure, leading many to shut down unexpectedly. States with high levels of corruption tend to have larger underground economies because employers want to avoid bribes associated with setting up a business 10. 1 in 6 Kenyan companies report having to give gifts and make informal payment in order to obtain an operating licence, and 1 in 3 companies report having to pay bribes to obtain construction permits 11 .
Corruption also dampens international aid. In 2010, the US government announced it was suspending education funding to Kenya following reports that more than US $1 million was missing from the country’s primary schooling program. The US could not trust that money it was supplying was going to its intended cause 12 .
Ultimately, the economic costs of corruption fall disproportionately on the poor as they are frequently asked for bribes, and must rely on underfunded and dysfunctional public services such as health care and education 13 . These are vast sums that could have been used to improve the lives of many, but instead have been used to line the pockets of the corrupt.
Where does the money go?
Kenya suffers from a leaky tax base. Political and economic elites routinely move their money out of the country to tax havens. This is true both of the money they earn through their economic endeavours and the money they steal from the public pot 14 . The wealth of the elites, both earned and stolen, is squirrelled away in jurisdictions with opaque tax laws, notably the United States, British Virgin Islands, Cayman Islands and Mauritius.
What can be done?
Major changes must come from within a country. Transparency International Kenya argues that the solution is to increase the independence of the country’s judicial system, ensuring that those guilty of misappropriating funds will be held to account. This must be coupled with comprehensive electoral reforms including the establishment of rigorous electoral vetting processes to scrutinise the backgrounds of candidates running for office, ensuring that individuals facing corruption allegations or with a questionable ethical standing are disqualified from running for office. The punishment for corruption needs to be clear and consistent. Anti-corruption laws and regulations also need to be strengthened, and independent commissions must be able to track down and punish corruption in all sectors 15 .
A lack of transparency is a great contributor to corruption. Another priority for the Kenyan government is to make information on budgets, government contracts, and resource allocations public in order to prevent fraud and corruption. An early-detection oversight system could be put in place to identify corrupt acts early and prevent them from taking root 16.
Responsibility also lies in international actors investing, and donating to countries where corruption is rife. The World Bank has faced issues with misused funds in the past, and now subjects all potential projects to rigorous scrutiny. And when there are substantiated allegations of fraud or corruption, companies involved are barred from engaging in any new World Bank Group financed activity. The World Bank believes that prevention calls for credible deterrence and relies on accountability and enforcement mechanisms to send a strong message to potential wrongdoers of the potential cost of their misconduct 17 .
As long as Kenyans cannot rely on their public leaders to combat corruption, integrating anti- corruption education into school curricula can help young citizens develop ethical values and a strong understanding of the detrimental impact of corruption, fostering a culture of honesty and accountability. Education also empowers children to recognise corrupt practices, and as they age into adulthood, to demand transparency from government institutions, and actively engage in civil society initiatives aimed at combating corruption.
How does NTS resist the culture of corruption?
NTS ensures that all students have a thorough understanding of corruption through the Civics curriculum, but we also lead by example. NTS refuses to give or accept bribes, and will never allow politicians to influence which young people are able to attend the school.
All staff, board members and staff are required to understand and sign our Anti-Corruption Policy, and any transgression is comprehensively enforced. We also require signing a comprehensive Conflict of Interest Policy, ensuring that everyone associated with NTS declares any association that may put them in conflict with the mission of the organisation.
References
1 The Borgen Project, 10 Facts About Corruption in Kenya, https://borgenproject.org/10-facts-about-
corruption-in-kenya/
2 Hope, Kenya’s Corruption Problem: Causes and Consequences,
https://www.researchgate.net/publication/267457638_Kenya%27s_corruption_problem_causes_and_conseq
uences
3 Cheruiyot, The Fight Against Corruption and Economic Crimes in Kenya: The Plight of EACC and Its Lack of
Prosecutorial Powers
4 Human Rights Watch, Kenya: Events of 2023, https://www.hrw.org/world-report/2024/country-
chapters/kenya
5 The Conversation, William Ruto’s First Year: He Promised to Make Life Easier for Kenyans, but Things Got
Worse, https://theconversation.com/william-rutos-first-year-he-promised-to-make-life-easier-for-kenyans-
but-things-got-worse-215171
6 World Bank Blogs, Corruption in Kenya, https://blogs.worldbank.org/en/africacan/corruption-in-kenya
7 PBS, How Widespread Corruption is Hurting Kenya, https://www.pbs.org/newshour/show/how-widespread-
corruption-is-hurting-kenya
8 Gan Integrity, Kenya Risk Report, https://www.ganintegrity.com/country-profiles/kenya/
9 United Nations Office on Drugs and Crime, What Is Corruption and Why Should we Care?,
https://www.unodc.org/e4j/zh/anti-corruption/module-1/key-issues/effects-of-corruption.html
10 Mungai, How Corruption is Holding Back Sustainable Development in Kenya,
https://www.linkedin.com/pulse/how-corruption-holding-back-sustainable-development-kenya-mungai/
11 Gan Integrity
12 Hope
13 Hope
14 International Consortium of Investigative Journalists, Offshore Havens and Hidden Riches of World Leaders
and Billions Exposed in Unprecedented Leak, https://www.icij.org/investigations/pandora-papers/global-
investigation-tax-havens-offshore/
15 Transparency International Kenya, Achieving Anti-Corruption Goals in Kenya Requires Collective Action,
https://tikenya.org/2023/12/08/achieving-anti-corruption-goals-in-kenya-requires-collective-action/
16 World Bank Blogs, Practical Mechanisms for Rooting Out Corruption, https://blogs.worldbank.org/en/youth-
transforming-africa/practical-mechanisms-rooting-out-corruption
17 The World Bank, Combatting Corruption,
https://www.worldbank.org/en/topic/governance/brief/combating-corruption