Kenya is the largest economy in Eastern Africa and has had a stable economic growth since President Kibaki first took office in 2002, mainly due to booming tourism and horticulture industries. However, the violence following the December 2007 elections negatively affected Kenya's economy, especially through extensive property loss and the disruption of transport of both workers and goods. Investors have been exerting greater caution in the wake of political and investment climate instability. Kenya's large informal sector, rising inflation, and a growing scarcity of employment opportunities have added to recent economic troubles. The Bertelsmann Foundation 2008 estimates that 50% of entrepreneurial and technological business takes place in the informal sector, and that its growth rate is higher than the formal economy. Furthermore, according to the Bertelsmann Foundation 2010, most enterprises start off in the informal sector and cannot afford the comparatively expensive process of registering with the state. Accordingly, in the World Bank & IFC Enterprise Surveys 2007, more than 40% of the surveyed companies identify the practices of competitors in the informal sector as a major business constraint. Although the government has introduced market reforms, the business climate in Kenya continues to be hampered by corruption, and according to Transparency International Global Corruption Barometer 2010, the private sector is said to influence public policy, laws and regulations through soliciting bribes and gifts. Furthermore, Transparency International's Global Corruption Report 2009 reports that the costs of corruption remain a deterrent to potential investors, and corruption is a major impediment both for existing businesses and those seeking to establish new businesses. In the Transparency International Global Corruption Barometer 2010, 15% of respondents gave corruption within the business and private sector in Kenya a score of 5 on a 5-point scale (1 'not and all corrupt' and 5 'extremely corrupt').

In the World Economic Forum Global Competitiveness Report 2011-2012, corruption continues to top the list of obstacles for doing business with 21% of the companies surveyed naming it as the most problematic factor. This is further supported by the World Bank & IFC Enterprise Surveys 2007, in which over 38% of the surveyed companies consider corruption a major constraint to their operations. The same survey also indicates that it is almost impossible to do business in Kenya without making facilitation payments, as roughly 80% of the companies surveyed cite that they are expected to make informal payments to public officials to 'get things done'. According to Transparency International Kenya's Kenya Bribery Index 2008, private companies are increasingly exposed to demands for bribes, however, the average size of bribes paid by companies in 2008 was half it was in 2006. This decrease could be attributed to a decline in the bribery reported by state-owned companies, which accounted for the largest proportion of business-related bribes in previous surveys. This suggests that the corporate governance and procurement reforms undertaken in that sector are paying off. Also, more investors are reporting that they can now do business with less frequent political interference. Nevertheless, the use of agents to facilitate business operations and transactions in Kenya is widespread and poses a risk for companies, particularly at the entry and business start-up stage. Bribery through agents can lead to legal sanctions, including high fines and a maximum 10-year prison sentence. Therefore, investors are strongly recommended to develop, implement, and strengthen integrity systems and to conduct extensive due diligence when doing business in Kenya.

The majority of companies state that public procurement is an area of business where it is common to encounter corruption and demands for bribes. According to the World Bank & IFC Enterprise Surveys 2007, 71% of the responding companies cite that they expect to give gifts to secure a government contract, with the value of the gift amounting to an average of 8% of the contract in question. Companies are recommended to use a specialised public procurement due diligence tool in order to mitigate corruption risks involving procurement in Kenya. Indeed, many corruption scandals in Kenya have involved fraudulent or inflated public procurement deals, where funds have been redirected to top government politicians and officials.

Kenya has struggled to attract foreign direct investment and the previous government sought to change this by introducing market-based reforms and providing more incentives for both local and foreign private investment, particularly in the export and import sectors and in telecommunications. The new government is continuing these policies and focus on structural reforms, including privatisation and deregulation. Foreign investors seeking to establish a presence in Kenya generally receive the same treatment as local investors and are guaranteed ownership and the right to remit dividends, royalties and capital, but according to the US Department of State 2010, there are some exceptions. In addition, international observers cite lack of transparency and inconsistent application of commercial codes as persistent problems.

According to the US Department of State 2011, the most significant disincentives for investment in Kenya include complexity of government regulations, poor infrastructure, expensive and irregular utilities, general insecurity and high cost associated with crimes. Nevertheless, Kenya was ranked as one of the world's top ten reformers by the World Bank & IFC Doing Business 2008 due to an ambitious licensing reform programme, which has so far succeeded in eliminating 110 licences and simplifying 8 others. Moreover, the government plans to eliminate over 300 and simplify nearly 600 licences. The changes have streamlined business start-up, cut both the time and cost of obtaining building permits, and facilitated cross-border trade. According to the same report, Kenya reported an increase of up to 33% in revenue after the reform. All in all, some of the main positive reforms include starting business, dealing with licences, registering property and getting credit. In addition, an Electronic Regulatory Registry, among others, has been launched to enhance transparency in accessing information on registered companies. The changes have streamlined business start-up, cut both the time and cost of obtaining building permits, and facilitated cross-border trade. According to data from the World Bank & IFC Doing Business 2011, starting a business in Kenya requires a company to go through 11 procedures, which takes an average of 33 days and costs 38% of GNI per capita. The de-licensing programme is envisaged to continue in order to minimise the possibilities for corrupt activities through bribes and facilitation payments to public officials. According to the Bertelsmann Foundation 2010, with the Investment Promotion Act 2004, the government significantly reformed the regulatory framework for setting up businesses, resulting in less red tape and being a measure against corruption.

According to the US Department of State 2011, property rights are recognised and enforced. But in practice, the process of obtaining a land title can be cumbersome and the process is often non-transparent. Foreigners in Kenya can own land, although there are some restrictions to leasing and ownership of land classified as agricultural. Kenya has a comprehensive legal framework to ensure intellectual property rights protection, which includes the Industrial Property Act 2001, the Trade Marks Act 1957 (revised 1994), the Copyright Act 2001 and the Universal Copyright Convention 1971. Moreover, Kenya is a member of the World Intellectual Property Organisation (WIPO) and of the Paris Union (International Convention for the Protection of Industrial Property). Nevertheless, according to the US Department of State 2011, enforcement of intellectual property rights is weak.

Kenya has commercial courts to deal with commercial disputes and there is a separate industrial court that hears disputes over wages and labour terms, the rulings of which cannot be appealed. Contractual rights are enforceable, but the process of doing so is often lengthy. The legal system is adversarial, and most disputes are resolved through litigation in court, although arbitration and alternative dispute resolution are increasingly popular. The Arbitration Act 1995 and Arbitration Rules 1997 form the regulatory framework of domestic arbitration options for companies. Kenya accepts binding international arbitration and has ratified to the New York Convention 1958 as well as being a member of the International Centre for Settlement of Investment Disputes (ICSID). Access Kenyan Law Reports or the Lexadin World Law Guide for a collection of legislation in Kenya.

Individual Corruption

According to Transparency International's Global Corruption Barometer 2010, the judicial system is perceived by households to be one of the most corrupt institutions in Kenya, ranked joint second behind the police in the survey. This perception is supported by the Bertelsmann Foundation 2010, according to which, despite an increase in salaries, the Kenyan judiciary is widely regarded as one of the most corrupt institutions in the country. Nonetheless, Transparency International Kenya's East African Bribery Index 2009 reports that the likelihood of encountering bribery in the judiciary has slightly decreased compared to the 2008 index.

Business Corruption

According to the World Bank & IFC Enterprise Surveys 2007, the vast majority of companies do not show much faith in the legal system. Legal fees are high, and although small and medium-sized companies may be able to initiate a case, sustaining a case is difficult and many parties will opt to settle their dispute outside court, as court processes are long and highly bureaucratic. According to the Freedom House 2011, courts are understaffed and underfinanced, suffering from a lack of capacity. The solicitation and acceptance of bribes by court officials in order to provide a favourable verdict is not uncommon. The source concludes that judicial corruption remains an impediment to the rule of law.

Political Corruption

According to the Bertelsmann Foundation 2010, the Kenyan judiciary has been seen by international development agencies as an agent of the executive and deeply corrupt. Political interference in judicial appointments and rulings has been common in the past, and the appointment process remains non-transparent. According to Freedom House 2006, President Kibaki criticised the extent of corruption in the judiciary and ordered the Minister of Justice to establish a process to identify corrupt judges. As a result, several judges and magistrates were suspended, which immediately won public approval. However, the subsequent appointment process raised concerns about the selection criteria and the lack of transparency. There is no process for vetting judges, and they are often appointed by the President in practice, as reported in Global Integrity 2009.

In December 2009, a High Court Judge was charged with corruption relating to the controversial sale of a prime land belonging to National Social Security Fund, as reported in a 2009 article by Business Daily. Allegedly, the judge has fraudulently paid the company Kipkenda, Lilan and Co. Advocates KES 8 million for services that Kenya's Anti-Corruption Commission (KACC) claims were not adequately rendered. According to the US Department of State 2011, a total of 23 judges were sacked for corruption in 2003 after the government made it mandatory for certain public officials to declare their wealth.

According to the Bertelsmann Foundation 2010, the Kenyan judiciary in August 2008 announced that it would introduce modern information technology systems in order to clear the systems of backlogs and corruption. This is further reported in International Legal Assistance Consortium Restoring Integrity 2010, where it is noted that an electronic case management system is urgently needed in all courts in Kenya, as well as an appropriate judicial training in such a system.

Frequency

The World Bank & IFC: Doing Business 2011:
- It takes 40 procedures over an average of 465 days at a cost of 47% of the claim to enforce a commercial contract in Kenya.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the Kenyan judiciary's level of independence from influences of government, citizens and companies a score of 2.9 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 3.5 and 3.4 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

Transparency International: Global Corruption Barometer 2010:
- Citizens give the judiciary a score of 3.8 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

- 39% of households surveyed consider the judiciary to be 'extremely corrupt'.

- 43% of households who had contact with the judiciary in 2009 reported to having paid a bribe.

Transparency International Kenya: The East African Bribery Index 2009:
- With a score of 54.4%, the judiciary is ranked the third most corrupt institution in Kenya by respondents in this citizen survey.

- The likelihood of encountering bribery in interactions with the judiciary is reported to be 86.1%.

- 57.8% of the respondents reported to having paid a bribe in their interaction with the police.

- 17.3% of respondents interacting with the judiciary report that the consequence of refusing to bribe was a denial of service.

- The average size of bribe paid to the judiciary is KES 5,627.

Afrobarometer: Summary of Results Kenya 2008:
- 20% of the household respondents report to not trust the courts of law.

- 35% of the household respondents believe that most or all of the judges and magistrates are involved in corruption.

The World Bank & IFC: Enterprise Surveys 2007:
- A little more than 22% of companies polled believe the court system is fair, impartial and uncorrupted.

- 13% of companies identify the functioning of the courts as a major business constraint.

Individual Corruption

Citizens rank the police as the most corrupt in Kenya, with nearly six out of ten respondents reporting to have paid a bribe in 2009, according to Transparency International's Global Corruption Barometer 2010. At the same time, Transparency International Kenya's East African Bribery Index 2009 reports that while the number of bribes paid to the police has declined in recent years, the amount paid per bribe has increased.

In February 2009, Phillip Ashton, the UN special rapporteur on extrajudicial, summary or arbitrary executions, published a damming report finding "that police in Kenya frequently executed individuals and that a climate of impunity prevails". He also reported on the existence of police death squads. Although the government has rejected the findings, the Kenya National Commission on Human Rights acknowledging that police had killed 308 youths in 2008. The report was cited in US Department of State 2010. As a result of the UN report, the chief of the police force was fired, however structural reforms to address the underlying reasons behind the brutality were not implemented, according to Freedom House 2011.

Solicitation of bribes by traffic police is reportedly common. Accordingly, the police commissioner established a special police squad in 2006 that included undercover detectives with a mandate to combat corruption involving police during traffic stops, as stated in the US Department of State 2008. The government arrested and charged some officers with various offences, including corruption. Nonetheless, according to the report, police officers are rarely arrested and prosecuted for corruption.

The Kenyan Human Rights Commission has drafted a bill designed to help the police cultivate a culture of respect for human rights and promote transparency and accountability in interactions between police and the public, according to the Bertelsmann Foundation 2010.

Business Corruption

Foreign investors should be aware that transportation costs may rise as a consequence of arbitrary demands for bribes at road blocks and other transit checkpoints. The World Economic Forum Global Competitiveness Report 2011-2012 reveals that companies identify Kenya to perform insufficiently in relation to the reliability of police services to protect them from crime.

Political Corruption

According to the US Department of State 2010, in 2008, a local NGO noted that bribery was a problem in the police recruitment process. The police often employ unqualified candidates with political connections or who have paid bribes to win the position. Despite that a police oversight board was established in September 2008 to hear citizens’ complaints and to make recommendations, a lack of political will and police concerns, have hampered the function of the board. Moreover, corrupt police officers were rarely arrested and punished. Underfunding is said to be the reason for bribery within the police force, as reported in Global Integrity 2009.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the reliability of Kenyan police services to enforce law and order a score of 3.2 on a 7-point scale (1 being 'cannot be relied upon at all' and 7 'can always be relied upon').

Transparency International: Global Corruption Barometer 2010:
- 41% of households who had contact with the police in 2009 report to have paid a bribe.

Transparency International Kenya: The East African Bribery Index 2009:
- With a score of 66.5%, the police are ranked as the most corrupt institution by citizens. The police have been perceived to be the most bribery-prone institution in the country for seven years in a row.

- The likelihood of encountering bribery in interactions with the police is reported to be 85.5%.

- 63.4% of the respondents report to have paid a bribe in their interaction with the police.

- 10.4% of the respondents, who refused to pay bribes to the police, were denied service.

- The respondents pay 3.1 bribes per year on average to the police, the average size of which is KES 3,180.

.Afrobarometer: Summary of Results Kenya 2008:
- 44% of household respondents report not to trust the police.

- 77% of household respondents believe that most or all police officers are involved in corruption.

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.

Business Corruption

According to the US Department of State 2011, secured interests in property are recognised and enforced. The legal system formally protects and facilitates acquisition and disposition of all property rights. In practice, however, obtaining titles to land is a cumbersome and often a non-transparent process, which is a serious impediment to new investment. Companies should be aware that although they are legally protected against expropriation and are guaranteed compensation, land is becoming an increasingly sensitive and heated issue in Kenya, and local and national level ethno-political considerations may see the protection of property rights inadequately enforced. The obtaining of land titles is frequently made more complicated by improper allocation of access and easements to third parties. It is rather common for public officials or members of the police force to accept bribes in order to falsify deeds or contracts.

Political Corruption

In the article Corruption and Land Administration 2006 by Paul van der Molen and Arbind Tuladhar, the Minister of Lands and Settlements states that land has been used as a pay-back system for favoured political supporters since independence. According to the same article, the state owns large chunks of land for development and research that are irregularly subdivided and sold. The coordinator of the Kenya Land Alliance reports that all land registries, land boards, the land rent collecting offices and the central registry in Nairobi are very prone to corruption. The offices of the provincial administration are equally prone to corruption because they are in charge of the executive administration of land within their administrative areas. Other offices prone to corruption include the survey offices, and the land tribunal offices, extending from the chief to the district officer to heads of municipalities.

In a July 2011 article in the Narobi Star, the Land Sector Non-State Actors Network (LSNSA) protested about the 'rampant corruption' in the Ministry of Lands and that recent reforms are just cosmetic. Further, the LSNSA believes that the ministry lacks the capacity to manage the land reforms in the country.

According to a 2010 article by the BBC News, 10 top officials were accused of having allegedly purchased cemetery land at an inflated price of KES 283 million, when it was originally worth KES 24 million. According to the same source, the purchased land was not even suitable for cemetery use.

In January 2009, former Finance Minister Amos Kimunya, who was involved in a dubious privatisation of the Grand Regency Hotel, was re-appointed to his previous position despite a parliamentary vote of no confidence against him. According to the Bertelsmann Foundation 2010, this is an example that confirms that the prosecution of abuse of office is not a political priority. Moreover, the source reports that privatisation is ultimately seen as vehicle for the realisation of individual interests.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business leaders give the protection of property rights in Kenya, including financial assets, a score of 3.7 on a 7-point scale (1 being 'very weak' and 7 'very strong').

The World Bank & IFC: Doing Business 2011:
- Registering property in Kenya requires a company to go through 8 administrative steps, which takes an average of 64 days and costs 4% of the property value.

Transparency International: Global Corruption Barometer 2010:
- 33% of the households surveyed reported to having paid a bribe to land services in 2009.

- 48% of households consider grand or political corruption in land matters to be a 'very serious problem'.

- 46% of respondents consider bribes to land authorities to obtain favourable decisions a 'very serious problem' in Kenya.

Transparency International Kenya: The East African Bribery Index 2009:
- With a score of 45.6%, the Ministry of Lands is ranked as the fifth most corrupt institution by citizens.

- 15.8% of the respondents interacting with the Ministry of Lands report that the consequence of refusing to bribe was a denial of service.

- The likelihood of encountering bribery in interactions with the Ministry of Lands is reported to be 77.7%.

- The average size of bribe paid to the Ministry of Lands is KES 4,060.

Individual Corruption

According to the Transparency International Kenya East African Bribery Index 2009, citizens often encounter demands for bribes in interactions with the Kenya Revenue Authority.

Business Corruption

A large informal sector exists in Kenya in which tax evasion is practised through corruption and other kinds of fraud. A dialogue between the business lobby and the revenue authorities on this issue has begun, but has not yet shown visible results. The Kenyan banking system has allegedly been involved in money laundering and tax evasion scandals.

The alleged Charterhouse Bank scam, involving money-laundering and tax evasion activities in connection to about KES 18 billion, was exposed by whistleblowers in 2004. Investigators believe that the cost of the tax evasion and money-laundering that took place through the bank was equivalent to 10% of Kenya's national income, according to Transparency International's Global Corruption Report 2009.

Useful information on tax related issues can be found on the homepage of the Kenya Revenue Authority.

Political Corruption

Corruption is a major threat to the revenue base in Kenya. According to a 2010 article by Daily Nation, the Commission General of Kenya Revenue Authority (KRA) stated that ports of entry, VAT refunds and registration of over-age vehicles are some of the most corruption-prone areas. According to him, 350 officials were removed between February and June 2010 in order to tear down the corruption networks.

According to Global Integrity 2009, while revenue collection has improved, there are continual reports that well-connected people can manage to evade paying taxes. High-level government officials have been reported to use their positions and influence to provide their friends and their companies with tax exemptions.

Frequency

The World Bank & IFC: Doing Business 2011:
- A medium-sized company operating in Kenya must make 41 payments to tax authorities and spend 393 hours preparing, filing, and paying taxes at a total annual tax rate of nearly 50% of profits.

Transparency International: Global Corruption Barometer 2010:
- 14% of households who had contact with tax revenue services throughout 2009 reported to having paid a bribe.

Transparency International Kenya: The East African Bribery Index 2009:
- Kenya Revenue Authority scores of 38.3%, placing the institution as the 10th most corrupt institution according to the citizens polled.

- The likelihood of encountering bribery in interactions with the Kenya Revenue Authority is reported to be 57%.

- 5% of respondents interacting with the police report that the consequence of declining to bribe was a denial of service.

- The average size of bribe paid to the Kenya Revenue Authority is KES 4,734.

Afrobarometer: Summary of Results Kenya 2008:
- 49% of household respondents believe that all or most tax officials are involved in corruption.

The World Bank & IFC: Enterprise Surveys 2007:
- 32% of companies expect to give gifts in meetings with tax officials.

- 61% of companies report that a typical company reports less than 100% of its sales for tax purposes.

- 32% of companies identify tax administration as a major constraint.

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.

Business Corruption

The Bertelsmann Foundation 2010 points out that there are still serious issues regarding the procurement of public enterprises in Kenya. The private media have often described these as shady deals. Many of Kenya's large corruption scandals have involved public procurements in which foreign or local companies have skimmed-off resources from over-invoiced contracts. Companies are recommended to use a specialised public procurement due diligence tool in order to mitigate corruption risks involved in public procurement.

According to the Transparency International Global Corruption Report 2008, as a result of privatisation and liberalisation, more opportunities for corruption are found in public procurement and public administration. In 2004, Kenya and its public procurement framework were shook by the Anglo-Leasing and Finance Limited scandal. According to some reports, the government issued promissory notes worth more than KES 50 billion to companies, including Anglo-Leasing, which reportedly received notes totalling KES 7 billion. The Anglo-Leasing deal was only one of 18 sham contracts entered into with different companies, most of which were non-existent entities paid for supplying fictional or overpriced services. Although the notes have supposedly been revoked, confirmation of the revocation of what were supposed to be irrevocable promissory notes has not been subject to parliamentary or public oversight.

See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

According to a 2008 article by Bloomberg, Finance Minister Amos Kimunya was forced to resign in July 2008 as lawmakers demanded his resignation over a public procurement corruption scandal. The scandal involved the greatly underpriced sale of a five-star hotel to a local company with Libyan interests. The hotel had been reclaimed by the government from Kamlesh Pattni, who allegedly purchased the hotel with profits reaped from the 1990s corruption scandal known as the Goldenberg scandal (see the 'Environment, Natural Resources and Extractive Industry' in the Corruption Levels section). In January 2009, Kimunya was re-appointed to his previous position despite a parliamentary vote of no confidence against him, according to the Bertelsmann Foundation 2010.

According to Global Integrity 2009, the public procurement process is addressed in the Public Procurement and Disposal Act. However, regulations on conflict-of-interest are not always enforced evenly. An example of this can be seen in the Anglo-Leasing scandal where uncompetitive contracts were awarded to companies in which government officials had interests. The former Permanent Secretary for Ethics and Governance in the Kibaki government, John Githongo, estimated that public contracts were inflated by 25-100% in the Anglo-Leasing deals between 2001 and 2004.

See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 2.6 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give Kenya's government officials' favouritism towards well-connected companies and individuals when deciding upon policies and contracts a score of 2.5 (1 being 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise Surveys 2007:
- 71% of companies polled expect to give gifts to secure a government contract.

- Companies polled expect to pay a gift of 8% of the contract amount on average to secure a government contract.

Business Corruption

Several sources including a 2003 article by World Press Review reports that the major Goldenberg International corruption scandal unfolded during the 1990s, when the billionaire Kamlesh Pattni exploited a government scheme designed to revitalise Kenya's faltering economy. The Goldenberg Commission investigated the scandal and revealed how Kenya lost up to USD 1 billion through fake gold and diamond deals. Despite the reports provided by the commission, their findings have had no consequences to date, with findings either remaining unpublished or evidence declared insufficient to convict many of the perpetrators. Pattni has reportedly surrendered his assets reaped from the Goldenberg scandal in exchange for amnesty in connection to the outstanding corruption charges against him.

Political Corruption

Global Integrity 2007 reports that an April 2006 inter-ministerial task force on national game reserve management revealed that there was monumental corruption in the Narok County Council (NCC), home of the world-famous wildlife sanctuary and national reserve Masai Mara. Land was illegally allocated to a former NCC treasurer, who is the son of the late Masai paramount chief and brother of an assistant minister at the time.

Another corruption related problem facing Kenya's national parks concerns the markets located near the game park entrances, building permits for which can be obtained through unofficial fees. A 2005 audit of Masai Mara Game Reserve tourism fees revealed that KES millions were misappropriated or unaccounted for. Another report by the NCC's internal auditor unearthed a USD 300,000 embezzlement scam.

• Legislation: Companies should note that a raft of new legislation is expected to accompany the new constitution over the next few years, which will help embed transparency, good governance, accountability and integrity in Kenya. The Anti-Corruption and Economic Crimes Act 2003 defines and criminalises corruption and establishes rules for integrity and transparency. Corruption in the form of attempted corruption, active and passive bribery, bribing a foreign official, money laundering, abuse of office, extortion, conflict of interest, bid rigging, and bribery involving agents is criminalised by the act. If found guilty of corruption, one faces a maximum fine of KES 1 million, a maximum 10-year prison sentence, or both. The act does not cover business-to-business corruption. The Public Officers Ethics Act 2003 which sets rules for transparency and accountability and defines graft and abuse of office, will be retracted and moved into the new constitution. Consequently, civil servants have to declare their wealth and can no longer claim that this is unconstitutional and an invasion of privacy. The Proceeds of Crime and Anti-Money Laundering Bill was originally tabled in Parliament in 2007, but it lapsed and was subsequently retabled in spring 2008. At the end of December 2009, the Parliament passed the bill. Despite this, experts fear that it may just be a gimmick by the government to appease international partners, according to a December 2009 article by Inter Press Service. In addition, the executive director of International Commission of Jurists Kenya, George Kegoro, points out that while the legislation is adequate, he doubts there is political will to completely stamp out money laundering in Kenya. The Finance Act 2006 addresses measures to be taken against tax fraud and lays out guidelines on tax administration insofar as value added tax (VAT), customs and excise duties and income tax are concerned. The legislation provides sanctions on corrupt practices and expands the tax bracket to capture a wider tax base, thereby reducing opportunities for tax evasion. The Service Commissions Act has a Code of Regulations for civil servants that require meritocratic recruitment and promotion of public officials, as well as provisions for ensuring their political independence. In the past, civil servants have faced sanctions for breaching this code. Still, interviews with civil servants conducted by Transparency International Kenya 2007 indicate that the Code of Regulations is often not followed and that bribery, nepotism and political patronage are widespread. Access the Lexadin World Law Guide for a collection of legislation in Kenya.

• Government Strategies: TThe government's governance reform efforts are centred on the new constitution, that gives the government the mandate to initiate reforms that support good governance, integrity, accountability and transparency. The current strategy, more robust with it constitutional mandate, is similar to the previous one. It is multidimensional and involves, amongst other things, the enactment of appropriate laws (e.g. the Anti-Corruption and Economic Crimes Act, etc.) and the creation and strengthening of institutions involved in governance. The first institution to be reformed has been the judiciary, with new vetting procedures introduced along with the appointment of a new chief justice and the swearing in of five Supreme Court judges. Central to the reforms of governance are the increasing number of government agencies with codes of conduct and ongoing reforms of the public financial management (PFM) systems, as reflected in the PFM reforms strategy. These reforms in the PFM arena are meant to greatly enhance transparency and accountability in the utilisation of public resources and thereby improve service delivery to the public. These reforms are complemented by a 2006 Ministry of Finance Staff Code of Conduct. Former Finance Minister Amos Kimunya made promises of a comprehensive anti-corruption plan, but similar past pledges have not been kept and Kimunya himself has been linked to a public procurement corruption scandal in early 2008, which led to his resignation several months later. Despite the scandal, Kimunya was re-appointed to his previous position in January 2009. An ethics and governance committee of the judiciary has been established to collect information to determine the levels of corruption in the judiciary, report on individual cases and recommend remedial measures. The government has recently taken more positive steps to develop freedom of information legislation. After issuing a draft policy for public consultation, it drafted a Freedom of Information Bill for tabling in Parliament that provides for both proactive disclosure and repeal of the Official Secrets Act. The new government has taken the initiative to establish a special quasi-judicial commission that will act as a one-stop plea-bargaining shop for confessions of corruption and surrender of illegally acquired assets in order to clean up past corruption cases in exchange for amnesty. This strategy forms part of discussions at higher government levels concerning the need to reconcile potentially destabilising divisions in government that could arise due to continuing high-level corruption scandals, a general amnesty bill, and the need to reduce the backlog of old corruption cases that are pending and ongoing in Kenyan courts.

• Anti-Corruption Agency: The Ethics and Anti-Corruption Commission (EACC) is the anti-corruption agency that has been created in August 2011 with a constitutional mandate and replaces the old Kenya Anti-Corruption Commission (KACC). The tasks of the EACC include the investigation of corruption and economic crime, examination of practices and procedures of public bodies and educating the public on the dangers of corruption and economic crime. The EACC now has the possibility to be given prosecution powers by Parliament, but currently, it still forwards cases to the Attorney General. This is seen as a potential weakness by Transparency International Kenya 2007. According to a 2008 news article by All Africa, the KACC had received close to 22,000 complaints since it began operating, but less than 3,000 of these complaints have been investigated. The Attorney General has been criticised for a lack of results, because even if the KACC passes cases on with recommendations, the Attorney General fails to act. Although the KACC has recommended prosecution of several government officials, according to Freedom House 2010, only 51 people had been convicted since 2003. In December 2008, the KACC managed to launch legal actions against seven MPs, including one minister, on charges of having been paid KES several million as allowances. Nevertheless, as assessed by the Bertelsmann Foundation 2010, the agency has failed to live up to its expectations; it has only brought one major suit to compel a public official (former Internal Security Minister) and has failed to win a single significant corruption case. Moreover, as illustrated by Global Integrity 2009, the KACC is not free of non-transparent practices; in July 2008, a Nairobi parliamentarian, Ferdinand Waititu, appeared before an anti-corruption court on charges of trying to bribe an official at the KACC with KES 230,000. The KACC receives regular funding and has a full-time staff, which, according to Global Integrity 2009, are among the best-paid public officials in Kenya, with the director receiving a higher salary than the national president. The commission is required by law to publish annual and quarterly reports of its activities. In the April to June 2011 report, the KACC reported that 17 out of 36 corruption cases given to the Director of Public Prosecutions were in court. Corruption can be reported anonymously on the KACC's website.

• Auditor General: The Controller and Auditor General (CAG) of the Kenya National Audit Office (KENAO) is the supreme audit institution in Kenya. The CAG is appointed by the president and is now, following the new constitution, approved by the National Assembly. The Controller and Auditor General is legally protected by political interference and according to Global Integrity 2009, despite the fact that the CAG is appointed by the president, there has been no suggestion that this affect their work. On the other hand, according to Transparency International's Global Corruption Report 2009, the executive powers in Kenya greatly compromise the effectiveness of the oversight institutions. The CAG receives regular funding and has a full time staff. The agency makes regular reports, which are public after they have been presented to the Parliament. After receiving the reports, the Parliament now has six months to debate and consider the report and take appropriate action. However, in the past the government rarely reacted to those recommendations.

• Ombudsman: In 2007, the government established the Public Complaints Standing Committee (PCSC) to receive, register, sort, classify and document all complaints against public officers. In addition, the PCSC is mandated to inquire into allegations of abuse of office, corruption and unethical conduct, breach of integrity, maladministration, delay, injustice, discourtesy, inattention, incompetence, misbehaviour, inefficiency or ineptitude. According to Global Integrity 2009, the PCSC is not independent from the executive, as officials are appointed by the president, to whom they also report. The PCSC receives regular funding and has a full-time staff; nonetheless, some sources suggest that the Committee remains understaffed and in need of more resources to handle high rates of complaints, as reported in a December 2009 article by Kenya Broadcasting Corporation. Earlier in 2009, the PCSC complained that the institutions it is mandated to oversee have refused to respond to complaints against them slowing down the pace of action on complaints, as pointed out in an August 2009 article by The Kenya Weekly Post. An Ombudsman Bill is currently in formulation and it is expected to give the PCSC powers to summon officials and to demand for documents.

• E-Governance: There have been direct efforts to automate the tax and customs services which have, together with the reduction of the road transport licences, drastically reduced direct contact between the Kenya Revenue Authority and the public. The Internet portal of the Government of Kenya portal provides links to ministry websites and local authorities as well as to the Directorate of E-Governance portal and Kenya Revenue Authority, which offer valuable information and services to companies and individuals. This includes business registration, e-tax registration/payment, VAT refund claims forms, and road transport, customs and land rent forms. Traders can now submit their documents online through an electronic system. The government aims at further improving Kenya's investment climate and recovering lost ground in the fight against corruption by digitising information of key sectors in the economy, including the procurement sector, the Lands ministry, the judiciary and the business registry, by 2011, as reported in a December 2009 article by Daily Nation.

• Public Procurement: The Public Procurement and Disposal Act (PPDA) was enacted in December 2006 to promote more unified and transparent public procurements, and established the Public Procurement Oversight Authority (PPOA) to oversee all procurement matters. The PPOA, under the Ministry of Finance, is the agency responsible for policy formulation and implementation as well as oversight of the public procurement process in Kenya. The PPOA is mandated with the responsibility of ensuring that procurement procedures established under the act are complied with, monitoring the procurement system and reporting on its overall functioning. It provides advice and assistance to procuring entities, and develops, promotes and supports the training and professional development of staff involved in procurement. Procurement regulations can be obtained and past reviews can be accessed and new reviews lodged through its website. All major transactions require competitive bidding by way of open tender, with provisions that allow for restricted tendering, direct procurement and requests for proposals. Unsuccessful bidders can challenge procurement decisions in courts. The PPDA provides that companies guilty of violations of public procurement regulations, such as bribery, may be debarred at the discretion of the director general; however, according to Global Integrity 2009, it is unclear whether companies that have previously violated regulations are barred from future activities. According to a December 2009 article by Daily Nation, Kenya is in the process of automating the procurement sector, which has been identified as the major route exploited by corrupt state officials. The current procurement legislation is an effort to curb loss of public funds, stipulating strict operational measures and penalties for breach, in an attempt to eradicate corruption in tendering processes, as assessed by the US Department of State 2011.

• Whistle-Blowing: According to the Anti-Corruption and Economic Crimes Act and the Witness Protection Act, no disciplinary action may be taken against any private or public employee, who assists an investigation or discloses information for such an investigation. Courts are required to conceal or remove any information that may disclose the identity of the informer, and to provide relocation and identity change if required. Global Integrity 2009 reports that it is not clear how effective this protection is in practice as several whistle-blowers that have exposed high-level corruption have fled the country. In May 2008, the government launched a multi-sector task force to formulate a framework for the implementation of the Witness Protection Act 2006. According to Transparency International's Global Corruption Report 2009, this task force is required to develop a programme that will protect vulnerable witnesses. Public corruption should be reported to the Kenya Anti-Corruption Coalition's (KACC) anonymous reporting system. The Ministry of Finance also operates a whistleblower reporting system, and the Kenya Revenue Authority operates a complaints and information centre.

• General Comments on the Public Anti-Corruption Initiatives: Major corruption scandals have damaged the current government's credibility, and there have been major setbacks in the fight against corruption. The strategy for combating corruption in Kenya has been criticised for being a 'grafting' approach, meaning that there are only weak institutional and legislative ties between the anti-corruption efforts and to other parts of the public system. The many shifting anti-corruption agencies during the last decade can be seen as a symptom of this lack of institutional anchorage. Critics have warned that the disparity in resource allocation between the highly-funded investigative KACC and the Attorney General could result in meticulously investigated corruption cases failing to lead to convictions because of weaknesses in prosecution caused by resource constraints. Competing agency mandates have also given rise to adversarial relationships between anti-corruption agencies that desperately require the opposite if they are to produce solid results. The country is perceived to have slackened its campaign against corruption because of the failure to prosecute and convict the perpetrators of the infamous Goldenberg scandal under the Moi regime or of the Anglo-Leasing scams under the Kibaki administration. Furthermore, three of the four government ministers who were forced to resign because of corruption scandals have later returned to the cabinet. The general apathy towards the government's anti-corruption efforts is also evident in data from Afrobarometer 2008, which reports that a large proportion of households consider all or most of the officials throughout the political system at both central and local levels, including the President, to be involved in corruption.

• Media:The new Kenyan Constitution explicitly guarantees press freedom and the freedom of expression. The constitution now grants rights to access and communicate information. A new Media Law is being drafted, as is a new policy for Information and Communication Technology and the Independent Communications Commission of Kenya is being established. All three, it is hoped, will create a freer media that can help ensure the freedoms of expression, media and information, defined in the constitution, become reality. Although violence and intimidation of journalists remains rare by regional standards, there are still the occasional reports. For example, in December 2010, a journalist investigating the murder of another journalist in 2009, received threatening phone calls, according to Freedom House 2011. Recent events have demonstrated a drive by the administration towards greater freedom of information through new constitutional provisions. However, as these developments progress, public oversight of government performance remains impeded by opaqueness in transactions and bureaucratic barriers to accessing them. Although defamation remains illegal in Kenya, the Attorney General has stated that the law is outdated and will no longer be used. Global Integrity 2009 reports that there are cases where corruption investigative journalists have been detained by Kenyan police, and according to the US Department of State 2009, a journalist was killed after orders by senior police officers, due to his report on police corruption. There was no thorough investigation to follow up the murder. Reporters Without Borders 2010 ranks Kenya 96th out of 175 countries, while Freedom House 2010 ranks the country 121st out of 196 countries and describes its media environment as 'partly free'.

• Civil Society: The constitution provides for freedom of association and assembly and, according to Freedom House 2011, these rights are generally respected. Kenya has a strong civil society, which has played a significant role in political mobilisation since the early 1990s. According to the Bertelsmann Foundation 2010, there are numerous NGOs and other civil society organisations engaging constructively with the state in all areas of policy-making. Nonetheless, at the same time, the report acknowledges that the voice of civil society has been consistently ignored in all major policy debates, even though their advice was frequently sought. The former head of Transparency International Kenya John Githongo was appointed head of the former Permanent Secretary for Ethics and Governance in 2003, but resigned in 2005 due to the failings of the Kibaki administration's anti-corruption and reform campaign. He subsequently fled Kenya after he leaked a report on graft to the British press and received death threats. His report, which had been ignored by the Kibaki administration, implicated several high-level ministers and Vice-President Moody Awori in the Anglo-Leasing scandal. Nonetheless, as alleged in a February 2009 article by BBC News, the government quickly reinstated the sacked ministers, and corruption allegations continued to appear in the country. Githongo returned shortly to Kenya in August 2008 on the invitation of Prime Minister Odinga and current Vice-President Stephen Kalonzo Musyoka, hinting that he might return permanently. His visit provided a strong boost to anti-corruption civil society activism and signalled a renewed sense of hope on behalf of anti-corruption activists under the new grand coalition government. Githongo actively engaged in anti-corruption activities during his visit and partook in discussions concerning the development of a quasi-judicial commission to grant amnesty to those involved in old but ongoing corruption cases if they admit their guilt and surrender the assets they acquired illegally.

• Transparency International Kenya (TI Kenya): TI Kenya is very active in the struggle against corruption in the country and aims to inform the public concerning the fight against corruption with rigorous research and analysis. TI Kenya is a prime source for documentation, investigation and activism on corruption-related issues. TI Kenya publishes the Kenya Bribery Index every year, which captures corruption as experienced by ordinary citizens in their interaction with officials of both public and private organisations.

• MARS Group Kenya: The goal of MARS Group Kenya is to create awareness and to generate demands for accountability from Kenya's leadership and to encourage Kenyans to hold to account those who have committed improprieties. The organisation's website offers interactive forums, corruption reports, access to certain government reports, daily corruption news, as well as recommended reading. A web-ombudsman including an online corruption reporting system is in development. MARS Group Kenya includes the Movement for Political Accountability (MOPA), which is a non-partisan coalition of organisations that brings together the private sector, religious leaders, civil society organisations and other stakeholders to promote accountability of elected leaders.

• Centre for Law and Research International Kenya (Clarion Kenya): Clarion Kenya aims to contribute to processes that make public institutions more accountable and responsive to the needs and demands of Kenyans. Clarion Kenya makes publications regarding corruption in Kenya available on its website.

• Eastern Africa Association (EAA): The EAA has membership of some 300 companies from a number of countries representing banking, insurance, manufacturing, trading, mining and agriculture, transport and shipping etc. The EAA conducts surveys on corruption amongst other issues.

• Institute of Certified Public Secretaries (ICPS): The ICPS is a professional organisation which has spoken out against corruption and runs continuing education and training programmes for its members to promote integrity and professionalism. The ICPS aims to develop and promote good governance, enhance productivity in the private and public sectors of the economy through its members, by inculcating in them high standards of professional knowledge, expertise and competence in public secretarial practice, administration, public and corporate management and related disciplines.

• Centre for Corporate Governance (CCG): The CCG is a private organisation which works to develop and promote the adoption of sustainable best practices in corporate governance through training, education, research, advocacy, monitoring and evaluation. The CCG develops corporate governance courses and training manuals for directors and leaders of all types of corporations, institutions and organisations, and conducts tailor-made, client specific courses in corporate governance and leadership. The organisation works actively in the field of private sector anti-corruption through the promotion integrity, transparency and accountability in corporate governance.

• African Parliamentarians Network Against Corruption Kenya (APNAC): APNAC is active in capacity-building, information campaigns, promotion of anti-corruption legislation, and establishing a legal framework to promote free elections.

The websites listed below provide useful facts on Kenya as well as contacts and tools for companies operating in Kenya

• International Finance Corporation: Kenya SME Toolkit
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Factbook: Kenya Country Profile
• World Bank: Kenya Data Profile

Sources for further reading:

• Freedom House: Freedom in the World - Kenya 2011.
• US Department of State: Investment Climate Statement - Kenya 2011.
• US Department of State: Human Rights Report - Kenya 2010.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• Transparency International Kenya: The East African Bribery Index 2009.
• Transparency International: Global Corruption Barometer 2009.

UNCAC Status: Signed and Ratified 9 December 2003.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• African Union Convention on Preventing and Combating Corruption: Signed 12 December 2003. Ratified 2 February 2007.
  Read Transparency International's summary and assessment of the convention.
• United Nations Convention against Transnational Organized Crime: Accession 16 June 2004.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: -0.91

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 6

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Publication date: November 2011

Data verified by: Global Advice Network

General Information Sources

• The World Bank & IFC: Doing Business 2012.
• World Economic Forum: The Global Competitiveness Report 2011-2012.
• Freedom House: Freedom in the World - Kenya 2011.
• US Department of State: Investment Climate Statement - Kenya 2011.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• African Economic Outlook: Kenya Profile 2010.
• All Africa: 'Reshuffle Coming in Three Weeks', 12 August 2010.
• The National: 'Kenya faces threat of renewed violence', 22 February 2010.
• BBC News: 'Kenya faces political 'meltdown', 17 February 2010.
• AFP: 'Kenya's premier seeks Annan's help in fresh crisis', 16 February 2010.
• Transparency International: Global Corruption Barometer 2010.
• Global Integrity: Kenya Country Report 2009.
• Transparency International: Global Corruption Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• Reuters: 'Most Kenyans want leaders to step down over graft', 23 February 2009.
• Transparency International: Global Corruption Report 2008.
• Lexadin: The World Law Guide - Legislation Kenya 2008.
• Transparency International Kenya: Kenya Bribery Index 2008.
• BBC News: 'Kenya 'fraud' minister told to go', 3 July 2008.
• BBC News: Country Profile Kenya April 2008.
• BBC News: 'Kenyan leaders agree on cabinet', 3 April 2008.
• CNN: 'Kenya Parliament takes step toward power-sharing deal', 11 March 2008.
• CNN: 'Kenya peace deal faces parliament test', 6 March 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• Transparency International Kenya: Kenya Bribery Index 2007.
• Library of Congress - Federal Research Division: Country Profile Kenya 2007.
• The Guardian: 'Kenya's elite escape action over corruption', 14 September 2007.
• The Independent: 'Report Reveals Scale of Corruption in Kenya', 1 September 2007.
• Reuters Africa: 'West Rebukes Kenya Parliament over Corruption', 15 September 2007.
• Deutsche Presse Agentur: 'Kenyan Leader Shoots Down Controversial Graft Bill', 28 September 2007.
• East African Business Week: 'Corruption Halts Regions' Business Potential', 8 October 2007.
• The Steadman Group: Public Opinion Poll, March 2006.
• The Bertelsmann Foundation: Transformation Index - Kenya 2006.
• The Economist: 'Caught in the Act', 28 January 2006.

Corruption Levels Sources

Judicial System

• The World Bank & IFC: Doing Business 2012.
• World Economic Forum: The Global Competitiveness Report 2011-2012.
• Freedom House: Freedom in the World - Kenya 2011.
• US Department of State: Investment Climate Statement - Kenya 2011.
• US Department of State: Human Rights Report - Kenya 2010.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• Restoring integrity: An assessment of the needs of the justice system in the Republic of Kenya February 2010.
• Global Integrity: Kenya Country Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• Transparency International: Global Corruption Barometer 2009.
• Business Daily: 'Judge on graft charge over sale of prime NSSF land', 30 December 2009.
• Daily Nation: 'Kenya moves to seal graft avenues', 14 December 2009.
• Afrobarometer: Summary of Results Kenya 2008.
• The Bertelsmann Foundation: Transformation Index - Kenya 2008.
• Transparency International Kenya: Kenya Bribery Index 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• Library of Congress – Federal Research Division: Country Profile: Kenya 2007.
• Freedom House: Countries at the Crossroads - Kenya 2006.

Police

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• Freedom House: Freedom in the World - Kenya 2011.
• US Department of State: Investment Climate Statement - Kenya 2011.
• US Department of State: Human Rights Report - Kenya 2010.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• Global Integrity: Kenya Country Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• Transparency International: Global Corruption Barometer 2009.
• Afrobarometer: Summary of Results Kenya 2008.
• Voanews: 'Kenya still Beset by Widespread Corruption', 24 July 2006.
• Transparency International: National Integrity Systems Country Study Report Kenya 2003.

Licences, Infrastructure and Public Utilities

• The World Bank & IFC: Doing Business 2012.
• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• Transparency International: Global Corruption Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• Bloomberg: 'Kenya Suspends 50 Officials Over Corruption, Kenyatta Says', 24 December 2009.
• Voice of America News: 'Most in Kenyan Cities Have No Access to Clean Water', 12 September 2009.
• IRC International Water and Sanitation Centre: 'Kenya: Nairobi water board sent packing following reports on malpractices', 7 August 2009.
• Daily Nation: 'Govt admits corruption in water sector', 23 June 2009.
• Reuters: 'Scandal-hit Kenya seeks aid for 10 million hungry', 16 January 2009.
• AFP: 'Kenya to probe suspected maize scam', 14 January 2009.
• BBC News: ''Food graft' row splits Kenyans', 13 January 2009.
• Transparency International: Global Corruption Report 2008.
• Afrobarometer: Summary of Results Kenya 2008.
• Freedom House: Freedom in the World - Kenya 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• Transparency International Kenya: Kenya Bribery Index 2007.
• Global Integrity: Kenya Country Report 2007.

Land Administration

• US Department of State: Investment Climate Statement - Kenya 2011.
• US Department of State: Human Rights Report - Kenya 2010.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• BBC News: 'Nairobi 'cemetery scam' - 10 deny Kenya charges', 29 April 2010.
• World Economic Forum: The Global Competitiveness Report 2009-2010.
• Global Integrity: Kenya Country Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• Transparency International: Global Corruption Barometer 2009.
• Business Daily: 'Judge on graft charge over sale of prime NSSF land', 30 December 2009.
• AFP: 'Kenya president brings graft-tainted minister back to cabinet', 24 January 2009.
• Paul van der Molen and Arbind Tuladhar: Corruption and Land Administration 2006.
• Southall, Roger, Review of African Political Economy: The Ndungu Report: 'Land & Graft in Kenya', Issue 103, March 2005.
• Transparency International: National Integrity Systems Country Study Report Kenya 2003.

Tax Administration

• The World Bank & IFC: Doing Business 2012.
• World Economic Forum: The Global Competitiveness Report 2011-2012.
• Daily Nation: 'KRA tightens the noose on graft cartels', 15 July 2010.
• Global Integrity: Kenya Country Report 2009.
• Transparency International: Global Corruption Report 2009.
• Transparency International Kenya: The East African Bribery Index 2009.
• The World Bank & IFC: Enterprise Surveys 2007.
• Transparency International: National Integrity Systems Country Study Report Kenya 2003.
• BBC News: 'Corruption costs Kenya $1bn a year', 23 May 2003.

Customs Administration

• The World Bank & IFC: Doing Business 2012.
• World Economic Forum: The Global Competitiveness Report 2011-2012.
• World Economic Forum: Global Enabling Trade Report 2010.
• The Standard: 'Raila insincere on port corruption', 22 April 2010.
• Global Integrity: Kenya Country Report 2009.
• Global Integrity: Kenya Country Report 2008.
• Transparency International Kenya: Kenya Bribery Index 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• The Philadelphia Inquirer: 'Crumbling roads tell tale of corruption', 26 April 2000.

Public Procurement and Contracting

• World Economic Forum: The Global Competitiveness Report 2011-2012.
• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• World Economic Forum: The Global Competitiveness Report 2009-2010.
• Global Integrity: Kenya Country Report 2009.
• AFP: 'Kenya president brings graft-tainted minister back to cabinet', 24 January 2009.
• Transparency International: Global Corruption Report 2008.
• The Bertelsmann Foundation: Transformation Index - Kenya 2008.
• BBC News: 'Kenya 'fraud' minister told to go', 3 July 2008.
• Bloomberg: 'Kenya's Finance Minister Resigns Over Hotel Scandal (Update3)', 8 July 2008.
• The World Bank & IFC: Enterprise Surveys 2007.
• The Bertelsmann Foundation: Transformation Index - Kenya 2006.
• The Economist: 'Caught in the Act', 28 January 2006.
• Transparency International: National Integrity Systems Country Study Report Kenya 2003.
• Dagbladet Information: 'Korruption: Den korrumperede klapperslange', 02 May 2000.

Environment, Natural Resources and Extractive Industry

• IRC International Water and Sanitation Centre: 'Kenya: Nairobi water board sent packing following reports on malpractices', 7 August 2009.
• Daily Nation: 'Govt admits corruption in water sector', 23 June 2009.
• Transparency International: Global Corruption Report 2008.
• The Bertelsmann Foundation: Transformation Index - Kenya 2008.
• Global Integrity: Kenya Country Report 2007.
• The Guardian: 'Kenya's Elite Escape Action over Corruption', 14 September 2007.
• Transparency International: Global Corruption Report 2006.
• The Bertelsmann Foundation: Transformation Index - Kenya 2006.
• Paul van der Molen and Arbind Tuladhar: Corruption and Land Administration 2006.
• World Press Review: 'Kenya: Corruption Scandal', Vol. 50, No. 10, October 2003.

Public Anti-Corruption Initiatives Sources

• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• US Department of State: Investment Climate Statement - Kenya 2010.
• Freedom House: Freedom in the World - Kenya 2010.
• Transparency International: Global Corruption Report 2009.
• Global Integrity: Kenya Country Report 2009.
• Inter Press Service: 'Kenya: Anti-Money Laundering Bill Passes, But Does Govt Mean Business?', 29 December 2009.
• Kenya Broadcasting Corporation: 'Police top public complaints list', 15 December 2009.
• Daily Nation: 'Kenya moves to seal graft avenues', 14 December 2009.
• The Kenya Weekly Post: 'Public Complaints Office Complains!', 18 August 2009.
• AFP: 'Kenya president brings graft-tainted minister back to cabinet', 24 January 2009.
• BBC News: 'Corruption charges for Kenya MPs', 2 December 2008.
• Afrobarometer: Summary of Results Kenya 2008.
• Transparency International: Global Corruption Report 2008.
• Transparency International Kenya: Kenya Bribery Index 2008.
• Lexadin: The World Law Guide - Legislation Kenya 2008.
• Daily Nation: 'Amnesty panel to be set up for the repentant', 22 August 2008.
• BBC News: 'Kenya 'fraud' minister told to go', 3 July 2008.
• Bloomberg: 'Kenya's Finance Minister Resigns Over Hotel Scandal', 8 July 2008.
• All Africa: 'Kenya: Ombudsman Comes to the Aid of Disgruntled Citizens', 4 June 2008
• Transparency International Kenya: Kenya Bribery Index 2007.
• Business Daily: 'Ringera says Agency has performed its anti-graft role', 19 September 2007.
• The Nation: 'KACC has done little in graft fight - Maathai', 16 September 2007.
• AfricaFocus Bulletin: 'Kenya: Corruption Fight Stalling', 11 February 2005.

Private Anti-Corruption Initiatives Sources

• The Bertelsmann Foundation: Transformation Index - Kenya 2010.
• US Department of State: Investment Climate Statement - Kenya 2010.
• Reporters Without Borders: Kenya Country Report 2010. 
• Freedom House: Freedom in the World - Kenya 2010.
• Freedom House: Freedom of the Press Index 2010.
• US Department of State: Human Rights Report - Kenya 2009.
• Global Integrity: Kenya Country Report 2009.
• Reporters Without Borders: Worldwide Press Freedom Index 2009.
• Freedom House: Freedom of the Press - Kenya 2009.
• BBC News: 'Kenya sleaze book sparks shop ban', 27 February 2009.
• Transparency International: Global Corruption Report 2008.
• US Department of State: Investment Climate Statement - Kenya 2008.
• BBC News: 'Kenyan PM welcomes ex-graft chief', 20 August 2008.
• Reuters: 'Exiled anti-corruption fighter to return to Kenya', 14 August 2008.
• BBC News: 'Kenya's vibrant and critical media', 4 January 2008.
• Transparency International Kenya: Kenya Bribery Index 2007.
• The Herald Tribune: 'World Bank Should Link Loans to Press Freedom-A Kenyan example', 5 April 2006.