KENYA Country Profile

Environment, Natural Resources and Extractive Industry

Individual Corruption

According to the Transparency International Global Corruption Report 2008, more than one in two Kenyan consumers have witnessed petty corruption in relation to water service provision. Furthermore, people living in the slums of Nairobi unconnected to the water grid are reported to pay up to 5-10 times more for water access than in other areas.

According to the executive director of the development group Maji na Ufanisi, Edward Kairu, about 70% of Kenya's water problems, including water shortage, are due to corruption in the water system, as reported in a September 2009 article by Voice of America News. This is supported by Transparency International Kenya's June 2009 report, 'Water Governance Study', cited in the aforementioned article, according to which, as a result of corruption, more than half of water consumed for domestic purposes in Kenya is unaccounted for, while the government is collecting only 20% of the fees due from large water users. The report also revealed that officials from various water boards accept bribes to establish illegal connections that are never built. Subsequently, the entire board of the Nairobi Water and Sewerage Company was sacked by the government over alleged mismanagement.

Business Corruption

During the 1990s, the major Goldenberg International corruption scandal unfolded when the billionaire Kamlesh Pattni exploited a government scheme designed to revitalise Kenya's faltering economy. The Goldenberg Commission investigated the scandal and revealed how Kenya lost up to USD 1 billion through fake gold and diamond deals. Despite the reports provided by the commission, their findings have had no consequences to date, with findings either remaining unpublished or evidence declared insufficient to convict many of the perpetrators. Pattni has reportedly surrendered his assets reaped from the Goldenberg scandal in exchange for amnesty in connection to the outstanding corruption charges against him.

Political Corruption

Global Integrity 2007 reports that an April 2006 inter-ministerial task force on national game reserve management revealed that there was monumental corruption in the Narok County Council (NCC), home of the world-famous wildlife sanctuary and national reserve Masai Mara. Land was illegally allocated to a former NCC treasurer, who is the son of the late Masai paramount chief and brother of an assistant minister at the time.

Another corruption related problem facing Kenya's national parks concerns the markets located near the game park entrances, building permits for which can be obtained through unofficial fees. A 2005 audit of Masai Mara Game Reserve tourism fees revealed that KES millions were misappropriated or unaccounted for. Another report by the NCC's internal auditor unearthed a USD 300,000 embezzlement scam.

The Masai Mara Game Reserve is not an isolated case; Tourism Minister Morris Dzoro exposed a scandal in 2006 in which staff looted the ministry of a sum in excess of USD 2.8 million. Nearly 75 ministry employees and tour drivers were involved in the scam.