Kenya losing 69 billion shillings annually to Corruption – KEPSA

Kenya losing 69 billion shillings annually to Corruption – KEPSA

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Kenya is losing 69 billion shillings annually due to corruption, an amount if properly utilised, would employ 25,000 graduates every year in the country, a report by the Kenya Private Sector Alliance (KEPSA) released on Monday, revealed.

The report disclosed that import, export, procurement and tax collecting sectors topped the channels through which corruption occurred in the country.

According to the report, import and export sectors had the highest chance of 36 percent likelihood of corruption, and were followed by procurement and tax collection at 13 percent chance, with licensing processes coming third at 11 percent.

Quality assurance processes stood at 8 percent while environment and safety certification was last at three percent.

“The major factors shaping corruption risks particularly in their interaction with the private sector include numerous documentation, slow pace of service delivery, poor understanding of procedures, high
tax levies and high transaction costs on businesses,” Dr. Charles Otieno, a  governance and public sector reform specialist, said during the launch of the report in Nairobi.

Otieno said that long and tedious processes involved in delivering public sector services to the private sector had created incentives for corruption, especially where the private sector would prefer faster delivery of services.

Patrick Obath from KEPSA said many businesses in the country were easily bullied into corruption to avoid hefty fines, levies and long procedures.

He said corruption had cost the country badly by raising the cost of living for every Kenyan by at least 15 percent as the amounts spent to bribe had to be passed on to consumers of goods and services.

In a corruption Index released by the Transparency International in 2013, Rwanda was ranked the least corrupt country in Africa, and placed 49th in the world with a percentage of 53, while Kenya ranked at 136 globally with 27 percent.

In the report, Denmark and New Zealand were ranked the least corrupt countries globally with 91 percent each.