KENYA Country Profile

Customs Administration

Business Corruption

Corruption in the customs sector often does not take place directly, but rather occurs through agents who are hired to help companies clear their goods faster through customs. Companies are recommended to access the Kenyan Ports Authority's official fees to be aware of situations in which hired agents may be demanding extra funds and making unofficial payments to customs authorities on their behalf.

Global Integrity 2008 reports that the Kenya Revenue Authority (KRA) is facing a major problem in the disposal of KES millions worth of environmentally harmful substances contained in substandard goods. According to the report, these goods are released from the Mombasa port and transported across Kenya after bribes are paid to pass several police checks.

Political Corruption

The past several years have seen significant improvements in the Customs Department, although discretionary behaviour on behalf of customs officials leading to unjustified delays, bribery, and other barriers remains common, as illustrated in an article by The Philadelphia Inquirer. Global Integrity 2008 reports that although customs and excise laws in Kenya are generally enforced uniformly and without discrimination, some exceptions remain.

Frequency

The World Bank & IFC: Doing Business 2010:
- A standardised export shipment of goods requires 9 documents and takes an average of 27 days at a cost of USD 2,055 per container.

- A standardised import shipment of goods requires 8 documents and takes an average of 25 days at a cost of USD 2,190 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Kenya a score of 3.3 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Global Corruption Barometer 2009:
- Citizens give the judiciary a score of 4 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

Transparency International Kenya: Kenya Bribery Index 2008:
- The Kenya Ports Authority scores of 20%, placing it as the 18th most corrupt institution according to the citizens polled.

- The likelihood of encountering bribery in interactions with the Kenya Ports Authority is reported to be 58%.

- 17% of respondents interacting with the Kenya Ports Authority report that the consequence of declining to bribe was a denial of service.

- The average size of bribe paid to the Kenya Ports Authority is KES 2,255.

The World Bank & IFC: Enterprise Surveys 2007:
- 24% of companies surveyed identified customs and trade regulations as a major constraint.

- 19% of companies expect to give gifts to get an import licence.