Cases of corruption and bribery have risen with over 12% over the past year as tough economic times continue biting in the country.
According to audit firm Price Waterhouse Coopers 2020 survey report, In Kenya, corruption, and Bribery are the most prevalent form of economic crimes, which are not only leading but on the rise as sh. 5.5 billion lost.
Launching the report in Nairobi, PWC Eastern Africa Advisory, and Forensic services leader Muniu Thoithi said that bribery and corruption rose from 30 percent in 2018 to 42 percent in 2020.
Procurement fraud is second whereby it rose from 34 percent in 2018 to 39 percent in 2020.
“These results of the survey showed that bribery, corruption, and procurement Fraud were the most prevalent and disruptive types of economic crimes experienced by organizations in Kenya,” Muniu said.
“Reported losses from the economic crimes experienced by surveyed organizations estimated sh. 5.5 billion.”He added.
44 percent of companies that experienced economic crimes had between 6-10 incidences that were reported in the last 24 months.
Other forms of economic crimes captured in the survey include asset misappropriation and customer fraud.
Muniu said that most perpetrators of economic crimes were internal standing at 36 percent while external actors stood at 27 percent.
He warned that customer fraud is on the rise as insurance companies and banks bore the brunt of the disruptive crime.
“Customer fraud is on the rise globally and remains high in Kenya. Customer fraud is prominent in financial organizations and consumer market segments.”Muniu said.
To counter the increased threat of external and technology-driven frauds, organizations have been investing in disruptive fraud-fighting technology.