Business Corruption

In a 2010 article by The Standard, an official from the Kenyan Revenue Authority (KRA) reports that when collecting taxes at the port customs officials are often offered bribes by taxpayers and that the bribe rate is fixed to one-third of the total taxes evaded. The same article also reports that more than 80 per cent of importers including reputable companies have tried to avoid paying proper import duties.

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 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 2009 reports that although customs and excise laws in Kenya are generally enforced uniformly and without discrimination, some exceptions remain.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- 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').

The World Bank & IFC: Doing Business 2011:
- A standardised export shipment of goods requires 8 documents and takes an average of 26 days at a cost of USD 2,055 per container.

- A standardised import shipment of goods requires 7 documents and takes an average of 24 days at a cost of USD 2,190 per container.

Transparency International: Global Corruption Barometer 2010:
- 25% of households who had contact with customs revenue services throughout 2009 reported to having paid a bribe.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) in Kenya a score of 2.7 on a 7-point scale (1 'non-transparent' and 7 'transparent').

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.