East Africa’s largest economy and the region’s preferred investment destination, Kenya, has been ranked number one in fraud and corruption tendencies in the region.
According to a report by an International Audit firm, Ernst and Young one in every three Kenyan companies surveyed had paid bribes to win contracts.
The survey conducted in 59 countries ranks Kenya behind Egypt, Nigeria and Namibia as economies where private sector corruption is most pervasive and distorting of tender award processes.
According to the report, 27 per cent of the chief executives, financial controllers and internal auditors surveyed in Kenya cited high levels of fraud in their companies – only lower than 44 per cent in Egypt, 30 per cent in Nigeria and 28 per cent in Namibia.
The report says private sector bribery, fraud and corruption is mainly driven by middle-level managers, especially men aged between 35 and 45. Their actions are mainly driven by pressure to perform and achieve set targets.
How it is carried.
The survey found that entertainment was the most common method of bribery that companies use to acquire and retain business. However, 27 per cent of chief executive justified offering personal gifts to get business.
The report further reveals that when someone wants a bribe they delay services and so you feel you have to grease their hands for things to move faster.
The revelation presents the Uhuru Kenyatta government with yet another daunting task to tackle this evil practices. Kenya is known for its economic power in East Africa and it is a preferred investment destination for many foreign investments in the region.