Graft costs Kenya businesses 23pc of annual earnings, survey shows
About 66 per cent of companies operating in Kenya are grappling with the negative impact of corruption on their businesses, British Chamber of Commerce Kenya business integrity market survey shows.
Out of this, 37 per cent of the respondent companies report financial impacts through loss of annual earnings or future investment, explaining Kenya’s struggles to attract foreign investors.
Annual losses of earnings relating to integrity lapses are valued at 23 per cent, while losses of future investment are valued at 20 per cent.
“While corruption is a global issue, it is a concern that has been raised in our discussion with businesses and international investors,” said Kevit Desai, Principal Secretary, State Department for East African Community (EAC), Ministry of EAC and Regional Development.
The integrity impact was revealed during the signing of a Memorandum of Understanding between Kenya and BCCK to promote Kenya’s business climate reforms agenda.