Economy under threat as government loses fight against corruption

The recent emergence of mega scandals in government has further tainted Kenya’s credentials in the international community, annoying donors, some of whom have suspended aid.

While the multi-billion shilling scandals have left the government sharply divided and swept away over a dozen senior civil servants, they have also overshadowed the search for a new head at the Kenya Anti Corruption Commission (KACC).

Now, anti-corruption activists and business leaders are cautioning that the resurgence could further hurt the already fragile business environment at a time when the economy is struggling to take the path of recovery.

Officials of the KACC and analysts are seeking answers as to why graft is once again rearing its ugly head in government.

“Corruption is a permanent thing, it never disappeared in the first place” says Mr Wilson Shollei, a deputy director at the anti-graft body.

Mr Shollei’s comments go a long way to demonstrate how graft continues to live within government offices and in the private sector despite several attempts by the state to fight it.

Transparency International’s latest corruption perception index ranks Kenya the third most corrupt country in Africa and the 30th most corrupt state in the world.

New scandals involving the private sector and government players that threaten to derail Kenya’s fight against graft include the recent purchase of additional land in Athi River by City Council of Nairobi’s for the purposes of a cemetery.

The price of the land was Sh24 million but the Council is said to have colluded with several middlemen and business people to inflate this by Sh253 million.

This scandal came hot on the heels of another in free primary education where Education ministry officials embezzled Sh1.7 billion meant for text books.

The British government which is the main donor, suspended all financial engagements with the government until the matter is investigated and the lost cash recovered.

On Tuesday, Britain announced it was withdrawing from government hands Sh2.3 billion meant for free learning and turning to NGOs for the disbursement of the money directly to schools.

As Parliament prepares to vet Nairobi lawyer PLO Lumumba, who has been short-listed to head KACC, new graft cases have emerged that are likely to make his work even more difficult.

He will be replacing Justice Aaron Ringera who resigned last year under pressure from MPs and the civil society who accused President Kibaki of bypassing Parliament to appoint him the head of KACC.

But has all the legislative and policy bodies produced any tangible results in the war against graft?