Survey shows corruption still rife in Kenyan firms

Incidence of corruption in Kenyan companies is still high despite recent investments in anti-bribery policies, a new survey by audit firm Ernst & Young has shown.

The lack of willingness by authorities to prosecute high level corruption cases and their inability to secure convictions has also maintained the high prevalence of bribery and corruption by firms, the survey shows.

“Kenyan businesses perceive authorities as relatively weak in their willingness to prosecute and their subsequent ability to secure convictions in bribery and corruption cases,” said Reuben Gitahi, the manager forensic investigation Ernst & Young when he presented the findings at the Africa Insurance and Reinsurance Conference in Nairobi on Monday.

Ernst &Young did 125 interviews in Kenya, Namibia, Nigeria, and South Africa while others were done in countries including Austria, Belgium, France, Germany, Greece, Italy, Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom.

The results of the survey, which was conducted between November last year and February this year, are based on 1,758 interviews with employees in 43 countries covering North America, Latin America, Europe, Africa, Middle East, Far East and Oceania.

Policies

It shows that 76 per cent of Kenyan companies reported incidence of bribery and corruption compared to the 67 per cent of companies in the rest of Africa, 22 per cent in Western Europe and 39 per cent globally.

The survey also shows that 96 per cent of the companies, more than half of which have revenues of more than Sh42.5 billion ($500 million) stated that they have anti-bribery policies in place and that senior management has strongly communicated its commitment to such policies.

The survey shows that 64 per cent of Kenyan firms interviewed strongly support the establishment of whistle-blower bounty schemes compared to 52 per cent of their counterparts in the rest Africa, 22 per cent globally and 12 per cent Western Europe.

According to the East Africa Bribery Index 2011 published by Transparency International, the Ministry of Lands, Immigration Department, Judiciary, Kenya Revenue Authority, state corporations and Nairobi City Council were among the 34 most corrupt institutions in the country.

Commercial banks, private schools, utilities, Mombasa City Council and Ministry of Public Works also made it to the top 34 list.