Corruption in Kenya

Corruption in Kenya

: Claims of 3 Billion Kenyan Shillings in Daily Losses in Public Procurement The claim that Kenya loses 3 billion Kenyan shillings (KSh) daily to corruption in public procurement is a recent estimate based on reports by Transparency International Kenya (TI-Kenya) and partner organizations. It underscores the ongoing corruption crisis in the country, particularly in public procurement, which is considered one of the biggest breeding grounds for corruption. According to recent reports, Kenya loses at least 3 billion Kenyan shillings daily to corruption in public procurement at the national and regional levels. Annual losses total 1.1 trillion Kenyan shillings. At the launch of the module “Citizen Watch: Monitoring Public Contracts Through Social Accountability” on December 2, 2025, Jan-Ole Voß, Deputy Head of the Konrad Adenauer Foundation (KAS) office in Kenya, explicitly warned: “Kenya loses approximately 3 billion Kenyan shillings (KSh) daily to corruption, a large portion of which is hidden in loopholes in public procurement processes.” This was underscored by Sheila Masinde, Executive Director of Transparency International Kenya, who described procurement as a “recurring pattern in corruption scandals.” The initiative aims to monitor citizens in order to create transparency. Earlier, similar estimates, such as those made by President Uhuru Kenyatta in 2018, spoke of daily losses of 2 billion KSh (approximately 15 million euros), which could have increased to 3 billion by 2025 due to rising government spending and inflation. The African Development Bank estimates annual losses due to corruption and illicit financial flows at US$1.5 billion (approximately KSh 195 billion), which equates to a daily average of around KSh 535 million – significantly less, but still enormous. These figures are estimates based on audits, surveys, and scandal analyses. They include not only direct bribery but also inflated prices, sham contracts, and conflicts of interest. This figure represents an increase from the previously reported 2 billion Kenyan shillings per day. The Ministry of Finance attributes the ongoing problems to corrupt actors who oppose the implementation of electronic procurement, which could curb corruption in public tenders. Why procurement is a hotspot for corruption: The answer is simple: in Kenya, public procurement accounts for a large portion of the state budget (approximately 30–40% of expenditures). According to the Ethics and Anti-Corruption Commission (EACC) Annual Report 2024/2025, dozens of government agencies and counties are being investigated for losses amounting to billions of dollars: Examples from the EACC report (December 2025) show, for instance, that the Kenya Leather Development Council lost 2.5 billion KSh through irregular tendering for a wastewater treatment plant. The Kenya National Highways Authority lost 2 billion KSh on road construction projects. The National Industrial Training Authority lost 1.62 billion KSh for IT systems. Further cases involve Kenya Power (1.3 billion KSh) and counties such as Kitui (1.42 billion KSh due to conflicts of interest). Systemic problems are evident. According to the OCCRP (Organized Crime and Corruption Reporting Project), "blanket purchase agreements" (BPAs) exploit loopholes to award contracts without competition—between 2021 and 2024 alone, US$1.7 billion flowed to individual suppliers in this way. Ghost companies receive payments for goods that are never delivered, and prices are inflated by up to 50%. The National Ethics and Corruption Survey 2024 shows that 75% of Kenyans perceive the police and 59% of procurement agencies as corrupt. Wikipedia and GAN Integrity report that procurement is the "leading area of ​​corruption," with annual losses of up to one-third of the national budget (approximately US$6 billion). This must have repercussions for Kenya. Economic impact. The daily 3 billion Kenyan shillings equate to over 1 trillion shillings annually—enough to massively strengthen health, education, or infrastructure. Instead, corruption exacerbates the debt crisis (national debt: 72% of GDP in 2023) and drives up prices for electricity and medicine. Social impact. Corruption paralyzes services; for example, misappropriated COVID-19 funds in 2020 cost billions, leaving hospitals empty. Protests against corruption (e.g., in 2024) demonstrate growing discontent. International impact: Kenya ranked 126th out of 180 in the 2023 Corruption Perceptions Index (32/100 points), which discourages investment. The Ethics and Anti-Corruption Commission (EACC) prevented losses of 16.5 billion Kenyan shillings and recovered assets worth 3.4 billion Kenyan shillings – the highest figure in recent years – through intensified investigations in the 2024/2025 financial year. The EACC processed 4,183 corruption reports. Bribery (37%) and embezzlement (19%) were the most common offenses, followed by procurement fraud. The Commission conducted 166 integrity checks, most of which failed and targeted government agencies such as the Kenya Revenue Agency (KRA) and hospitals. Courts concluded 54 cases with 33 convictions, while the EACC is pushing for legislative reforms to bar convicted individuals from public tenders for 10 years. @https://www.the-star.co.ke/news/2025-12-08-kenya-losing-sh3bn-daily-to-graft-in-state-tenders https://www.the-star.co.ke/news/2025-12-08-eacc-averts-sh165bn-losses-in-record-year @https://www.youtube.com/watch?v=UNcx9lpbBRc https://www.the-star.co.ke/news/2025-12-08-eacc-recovers-sh34bn-files-most-recovery-suits-in-5-years @https://eastleighvoice.co.ke/headlines/252083/eacc-report-exposes-billions-lost-to-corruption-in-state-agencies-counties @