Please provide an overview of the most pressing integrity risks affecting international businesses operating in Kenya.
Summary
While Kenya is an attractive destination for international businesses active in Africa, integrity risks present a real concern and can be a deterrent to investment. The country’s struggles with corruption have a major effect on the business environment. International businesses need to have a sound understanding of this context and the specific integrity risks it will present to their operations.
Content
Global evidence of the impact of corruption on business and investment
The Kenyan economy and international investment
The political context to integrity issues
Cross-sectoral integrity risks
Additional commentary by key sector
Business anti-corruption initiatives in Kenya
Anti-corruption guidance for businesses
References
Main points
Kenya is a regional economic hub which offers significant opportunities for international businesses.
Integrity risks for businesses are nonetheless high and stem from a long history of corruption and mismanagement in politics and government institutions.
Key areas of risk for international businesses across all sectors include public procurement, politically connected partners, engagement with state-owned enterprises, bureaucratic and administration corruption and fraud.
These forms of integrity risk vary significantly by sector and the extent of engagement by businesses with the government and state-owned enterprises. Different types of international businesses may also experience these problems with varying levels of severity.