Individual Corruption

The registry and permit services are considered to be very corrupt in Kenya, according to Transparency International's Global Corruption Barometer 2010. The average Kenyan household frequently has to pay bribes for simple bureaucratic tasks, such as the issuing of birth certificates or vehicle licences. Furthermore, as emphasised by the Bertelsmann Foundation 2010, corruption is also at the heart of the ongoing deterioration of the health system.

According to the Transparency International Global Corruption Report 2008, more than half of Kenyan consumers have witnessed petty corruption in relation to water service provision. Furthermore, people living in the slums of Nairobi unconnected to the water grid are reported to pay up to 5-10 times more for water access than in other areas.

Business Corruption

According to Transparency International's Global Corruption Report 2009, excessive regulatory requirements such as licensing create widespread opportunities for bribery. This is supported by the US Department of State 2011, according to which, new foreign investment in Kenya is usually constrained by a cumbersome and highly discretionary licensing system that is subject to corrupt practices. However, since 2007, the Kenyan government began carrying out a significant reform on business environment and established an electronic company registry. These changes made Kenya a much better country to do business in.

Political Corruption

Several corruption scandals, such as the Anglo-Leasing Affair, have involved licensing and the Managing Directors of Kenya Power and Lighting, Telecommunications, Postal Services and Communication Commission of Kenya have all been sacked and charged with corruption in the past.

According to the executive director of the development group Maji na Ufanisi, Edward Kairu, about 70% of Kenya's water problems, including water shortage, are due to corruption in the water system, as reported in a September 2009 article by Voice of America News. This is supported by Transparency International Kenya's June 2009 report, 'Water Governance Study', cited in the aforementioned article, according to which, as a result of corruption, more than half of water consumed for domestic purposes in Kenya is unaccounted for, while the government is collecting only 20% of the fees due from large water users. The report also revealed that officials from various water boards accept bribes to establish illegal connections that are never built. Subsequently, the entire board of the Nairobi Water and Sewerage Company was sacked by the government over alleged mismanagement.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give government administrative requirements (permits, regulations, reporting) in Kenya a score of 3 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

The Word Bank & IFC: Doing Business 2011:
- Building a warehouse in Kenya requires a company to go through 11 administrative steps, taking an average of 120 days at a cost of 168% of income per capita - all considerably below regional averages.

Transparency International: Global Corruption Barometer 2010:
- 30% of households who had contact with registry and permit services in 2009 reported to having paid a bribe.

- 9% of households who had to obtain utilities in 2009 reported to having paid a bribe.

Transparency International Kenya: The East African Bribery Index 2009:
- 51% of respondents in the survey reported to have paid bribes to access or speed up services (this is an increase from 45% in 2008).

Afrobarometer: Summary of Results Kenya 2008:
- 23% of household respondents have paid a bribe, given a gift, or done a favour for a governmental official in the past year in order to obtain a document or permit.

- 12% of household respondents have paid a bribe, given a gift, or done a favour for a governmental official in the past year in order to get water or sanitation services.

The World Bank & IFC: Enterprise Surveys 2007:
- Slightly more than 3% of companies surveyed identify business licensing and permits as a major business constraint.

- Slightly more than 79% of companies report that they expect to make informal payments to public officials to get things done.

- 29% of companies expect to give gifts to get an operating licence.

- 36% of companies expect to give gifts to get a construction permit.

- 23%, 27% and 34% of companies expect to give gifts to get an electrical, phone, and water connection respectively.