Kenya Country Profile

Snapshot of the Kenya Country Profile


Kenya is the largest economy in Eastern Africa and has been an attractive destination for foreign investment for many years. However, the violence following the 2007 elections has negatively affected Kenya's economy and investors have been more cautious. Although the government has introduced various market reforms, the business climate in Kenya continues to be hampered by corruption. It is reportedly common for public servants to solicit bribes and gifts from private companies.

Positive developments in relation to corruption and investments:

  • Political interference in the private sector has been reduced via structural reforms, including privatisation and deregulation, while regulatory procedures have been streamlined and simplified, resulting in Kenya being named as one of the world's top ten reformers by the World Bank & IFC in 2008.
  • An increasing number of government agencies have codes of conduct and ongoing reforms of the public financial management (PFM) systems are meant to greatly enhance transparency and accountability in the utilisation of public resources and thereby improve public service delivery.
  • An ethics and governance committee of the judiciary has been assess the levels of corruption in the judiciary, report on individual cases and recommend remedial measures.
  • The government has taken more positive steps to develop freedom of information legislation and has also taken the initiative to establish a special quasi-judicial commission to act as a one-stop plea-bargaining shop for confessions of corruption and surrender of illegally acquired assets in order to clean up past corruption cases in exchange for amnesty.

Risk of Corruption:

  • Despite market reforms, several business surveys reveal that business corruption is still widespread and that companies frequently encounter demands for bribes and informal payments to 'get things done' in Kenya.
  • According to surveys, a large number of companies state that public procurement is an area of business where it is common to encounter corruption and requests for bribes.
  • The use of agents to facilitate business operations and transactions in Kenya is widespread and poses a risk for companies, particularly at the entry and business startup stage. Bribery through agents can lead to legal sanctions, including high fines and up to 10-years in prison.