Home ECONOMY Fraud, bribery most prevalent forms of graft

Fraud, bribery most prevalent forms of graft

by biasharadigest

Public institutions, private sector and political class have the highest prevalence rate of corruption, this is according to Corruption Risk Mapping in Kenya’s Private Sector 2019 report by the Kenya Private Sector Alliance (KEPSA).

The lobby group is proposing a decisive implementation of policies that will deter graft that is now threatening to reverse gains made in creating a conducive environment for doing business.

The report by KEPSA suggests that unchecked systemic corruption and bribery problems increases the cost of doing business, creates unfair competition and curtails efforts towards efficiency.

Audit firm PriceWaterhouse coopers estimates that companies lose 12.85% of their annual revenue to fraud and employee related malpractices whose ripple effect manifests in various forms including increased unemployment and reduced tax revenues.

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The report indicates that corruption is mainly concentrated in  the procurement supply, finance and accounting, sales and marketing, and imports and exports areas of business operations; with public institutions, private sector and the political class most vulnerable.

“Fraud, bribery, tax evasion and embezzlement were most prevalent forms of corruption with procurement & supply, finance, & accounting, being most vulnerable areas of business while Transport & Storage, Construction, & Real Estate sectors suffered the highest financial loses” reads the report.

The report further reveals that 44% of businesses are not even aware of existence of the Bribery Act or the liability to comply with it. Even so, only 32% of those who were aware expressed understanding of the Act.

Kenya Private Sector Alliance chair, Lee Karuri urged Kenyans in general to play an active role to curb rising cases of corruption that are hampering socio-economic development while at the same time eroding Kenya’s’ attractiveness to investors.

He noted that where corruption is high, poverty will also be high and high chances of compromised democracy.



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