Corruption in Kenya: The Winds of Change?

http://www.gadonet.com/Default.asp

Njuguna Njoroge
Ethics of Development in a Global Environment E297C Professor Bruce Lusignan December 2 !

Table of Contents
INTRODUCTION.............................................................................................................................4 DE ININ! CORRU"TION............................................................................................................# $T%TE O OCCU"%TION%& R%UD IN 'EN(%...................................................................) "#$%&NE 'C#""$P%&#N( )"#$%&NE #CC$P*%&#N*L +"*$D,-------------------------------------------------------7 G"*ND 'C#""$P%&#N( )G"*ND #CC$P*%&#N*L +"*$D,-------------------------------------------------------------. L##%&NG------------------------------------------------------------------------------------------------------------------------------------------9 %/E C#0% #+ #CC$P*%&#N*L +"*$D &N 1EN2*-------------------------------------------------------------------------3 4&C"#EC#N#4&C *N*L20&0 #+ #CC$P*%&#N*L +"*$D &N 1EN2*--------------------------------------------3 0ummar5 of %&61en5a7s "esearch----------------------------------------------------------------------------------------33 %he &nci8ence of Briber5------------------------------------------------------------------------------------------------------32 4agnitu8e of Briber5------------------------------------------------------------------------------------------------------------3! Cost of Briber5----------------------------------------------------------------------------------------------------------------------39 1en5a $rban Briber5 &n8e: "an;ings---------------------------------------------------------------------------------3< Briber5 &nci8ence "an;ings--------------------------------------------------------------------------------------------------37 0everit5 of Briber5----------------------------------------------------------------------------------------------------------------39 Briber5 Cost an8 +re=uenc5 of Bribes----------------------------------------------------------------------------------23 4*C"#EC#N#4&C *N*L20&0 #+ #CC$P*%&#N*L +"*$D &N 1EN2*-------------------------------------------22 >aste8 E:pen8itures------------------------------------------------------------------------------------------------------------22 $n8elivere8 Goo8s or 0ervices--------------------------------------------------------------------------------------------2! &rregular Pa5ments----------------------------------------------------------------------------------------------------------------29 $ncollecte8 an8 $nsurren8ere8 "evenue-----------------------------------------------------------------------------2< 0ummar5 of the 4acroeconomic &mpact *nal5sis of #ccupational +rau8 in 1en5a----------2? "*4&+&C*%&#N0 #+ #CC$P*%&#N*L +"*$D &N 1EN2*----------------------------------------------------------------27 Public sector--------------------------------------------------------------------------------------------------------------------------2. Private 0ector------------------------------------------------------------------------------------------------------------------------2. %he *verage 1en5an -----------------------------------------------------------------------------------------------------------29 ORI!IN$ O OCCU"%TION%& R%UD IN 'EN(%.............................................................*+ %NTI,CORRU"TION E ORT$ %ND -E%$URE$................................................................*. +#"4E" G#@E"N4EN%70 &N&%&*%&@E0------------------------------------------------------------------------------------------!2 &N&%&*%&@E0 #+ C&@&L 0#C&E%&E0 *ND NG#70------------------------------------------------------------------------------!! P"&@*%E 0EC%#" &N&%&*%&@E0-------------------------------------------------------------------------------------------------------!! E++#"%0 *ND &N&%&*%&@E0 #+ %/E NE> N*"C G#@E"N4EN% ---------------------------------------------------!9 N*"C *nti6Corruption *chievements---------------------------------------------------------------------------------!< Criticisms on N*"C7s progress on *nti6Corruption------------------------------------------------------------!? CONC&U$ION$.............................................................................................................................*) /OR'$ CITED..............................................................................................................................*0

&1st of Tables and D1ag2ams

OCCU"%TION%& R%UD %ND %3U$E DI%!R%-................................................................# $I4E %ND RE5UENC( O 3RI3E$ RE"ORTED.................................................................* 'EN(% 3RI3ER( INDE6 7R%N'IN! IN$TITUTION$8.......................................................# 3RI3ER( INCIDENCE 3( IN$TITUTION...............................................................................) $E9ERIT( O 3RI3ER( 3( IN$TITUTION...........................................................................0 3RI3ER( T%6 "ER "ER$ON 3( IN$TITUTION.................................................................:. RE5UENC( O 3RI3ER( 3( IN$TITUTION.....................................................................:. %NNU%& /%$TED E6"ENDITURE$.......................................................................................:* %NNU%& IRRE!U&%R "%(-ENT$.........................................................................................:# %NNU%& UNCO&&ECTED %ND UN$URRENDERED RE9ENUE......................................:; DI 7 OREI!N DIRECT IN9E$T-ENT8 %ND !D" 9ER$U$ CO$T O OCCU"%TION%& R%UD...........................................................................................................:)

INTRODUCTION
A nation-wide opinion poll published in October 2001 by the International Republican Institute found that "24% of respondents say that corruption is the single ost i portant issue facing !enya now followed by po"erty #22%$ and une ploy ent #1%%$&" A%ransparenc5 &nternational6 1en5a #ver the last four 8eca8es since its in8epen8enceB 1en5a has been ravage8 Cith corruption culminating in the 399 7s Cith several econom56crippling scan8als that roc;e8 the nation an8 brought much international in8ignation as Cell- >ith all this corruptionB it Cas not surprising to see that 1en5a Cas ran;e8 fourth in the Corl8 in corruption 8uring 2 3B Chen the above surve5 3ENeCsENeCs<.-html,-

Cas con8ucte8 )httpDEECCC-nationau8io-comENeCsEDail5NationE2. ?2

1en5ans7 8issatisfaction Cith the state of corruption an8 the 4oi regime at the time resulte8 in a lan8sli8e victor5 for the National "ainboC Coalition )N*"C, part5 in the December 2 2

presi8ential elections- &n factB the neC government Cas ushere8 in Cith so much e:uberanceB $huru Par; )&n8epen8ence Par;, in the center of Nairobi Cas cramme8 Cith half a million 1en5ans gleefull5 Catching an8 celebrating the inauguration of the neC presi8ent 4Cai 1iba;i*s Cith an5 neC presi8ential electionsB promises Cere ma8eB the most prominent being N*"C7s commitment to e:terminating corruption b5 bringing bac; the 'culture of 8ue processB accountabilit5 an8 transparenc5 in public office(>ith the euphoria surroun8ing the elections an8 the campaign ple8gesB 1en5ans have high e:pectations that N*"C Cill 8elver on its promises b5 stampe8ing corruption an8 tac;ling other significant problems facing 1en5a- %his paper Cill first investigate the 8epths of this corruptionB loo; at Chat the past government attempte8 to 8o to resolve it an8 finall5B assess the neC government7s progress on their campaign promises-

DE ININ! CORRU"TION
4ost use the term corruption to refer to its conventional 8efinitionB Chich pertains to a state of immoralit5- * more technical 8efinitionB obtaine8 from %he *ssociation of Certifie8 +rau8 E:aminers )*C+E, )httpDEECCC-businessinafrica-co-FaEDecemberEcorruption-htm,B states that corruption is 'one of three elements of #ccupational +rau8B the others being 4isappropriation an8 +rau8ulent +inancial statements(- BeloC is a chart from *C+E that provi8es an overvieC of #ccupational +rau8OCCUPATIONAL FRAUD AND ABUSE DIAGRAM

<

1en5a is plague8 b5 the three categories of #ccupational +rau8- /oCeverB in this research paperB & am primaril5 focusing on Corruption an8 *sset 4isappropriation- %hese tCo categories have been the most salient in scan8als involving occupational frau8- NonethelessB the +rau8ulent 0tatements categor5 has also pla5e8 a role in #ccupational +rau8 in 1en5a as Cell- "eferring to the chart on #ccupation +rau8 an8 *buseB Corruption itself is segmente8 in the folloCing categories b5 *C+E )8irect =uotation,D Conflict of interestD Chere a public official or compan5 emplo5ee has an un8isclose8 interest in another compan5 an8 is selling to or bu5ing from hisEher emplo5er- &f heEshe is selling to hisEher emplo5er at inflate86prices an8 if sheEhe is bu5ing from hisEher emplo5erB it is at a much6re8uce8 rate Briber5D Chere an official or compan5 emplo5ee accepts mone5 or some other consi8eration to engage in a particular course of actionB or inaction &llegal GratuitiesD are not seen as bribesB but rather as a Gthan; 5ou7 for 8oing business- %his is still a bribe as the public official or compan5 emplo5ee ;neC that the5 Coul8 be getting the gratuit5 if the5 8i8 business Cith a particular ven8or- %he Gthan; 5ou7 or reCar8 is normall5 an e:pensive item such a full5 pai8 holi8a5 oversees for the croo;e8 emplo5ee an8 hisEher Chole famil5 Economic E:tortionD Chere an official or compan5 emplo5ee 8eman8s mone5 or some other consi8erations to engage in a particular course of action or inactionEven though a clearer Cor;ing 8efinition of #ccupational +rau8 has been establishe8B occupational frau8 is most often categoriFe8 as misappropriation an8 frau8ulent statements un8er 'corruption(Conse=uentl5B most of the sources that & am emplo5ing in m5 research use 'corruption( as umbrella 8efinition for #ccupational +rau8- NonethelessB & Cill attempt to 8ifferentiate or clarif5 as nee8e8-

$T%TE O OCCU"%TION%& R%UD IN 'EN(%

4ost 1en5ans to8a5 can easil5 pinpoint the var5ing forms or 8egrees of occupational frau8 in 1en5a- &n his thesisB '+ighting CorruptionD &s 1en5a on the right trac;H(B 4uton5i i8entifies three categoriesI'"outine Corruption(B 'Gran8 Corruption( an8 'Looting( )page ?,- Note that he uses 'corruption( in the broa8 sense of the 8efinition )i-e- occupational frau8,-

Routine Corruption (Routine Occupationa Frau!"

%his t5pe of occupational frau8 is the most common- 4uton5i further sub8ivi8es '"outine Corruption( into tCo categories %he first he labels 'Corruption Cithout theft(- %his t5pe of occupational frau8 is characteriFe8 b5 situations Chere a service or a goo8 is purchase8 at its original price plus an a88itional 'fee( )i-e- a bribe, that can e:pe8ite the ac=uisition of that goo8 or service+or instanceB to obtain a licenseB it is common to pa5 'grease mone5( on top of the government price to ensure =ualit5 an8 spee8 of service )i-e- to oil the bureaucratic Cheels so to spea;,- $suall5B the =ualit5 of service an8Eor the goo8 is commensurate to the amount of bribe- %his t5pe of occupational frau8 is not mutuall5 beneficialB so the government official ma5 be reporte8 if he or she is e:pecting e:cessive amounts of bribing %he secon8 categor5 of routine occupational frau8 that 4uton5i 8escribes is title8 'Corruption Cith theft( )?,- 'J#ccupational frau8K Cith theft( inclu8es occupational frau8 Chere a portion of the cost of the goo8B service or fee is retaine8- +or e:ampleB if a police officer pulls 5ou over for spee8ing- &nstea8 of being issue8 a tic;etB Chich the offen8er Coul8 normall5 pa5 to the governmentB the offen8er bribes the officer so that he or she circumvents having to pa5 the government- &n this scenarioB bribing is mutuall5 beneficial+or the offen8erB the bribe is t5picall5 loCer than the spee8ing tic;et an8 more convenient 7

since the offen8er can avoi8 the bureaucratic hassles of getting the tic;et cleare8- *s for the officerB his or her oCn income ma5 not necessaril5 increase because of citing the offen8erB so the bribe supplements his or her income- $nfortunatel5B the police in the past have capitaliFe8 on opportunities to bribe motorists b5 setting up roa8bloc;s to perform routine inspections on cars- %he premise behin8 this is to ensure that the motorists are a8hering to vehicle safet5 laCsB but it is Cell ;noCn that these roa8bloc;s are more about procuring supplemental income for the police-

Gran! Corruption (Gran! Occupationa Frau!"

Gran8 occupational frau8 is a form of briber5B but on a much larger scale- *s 4uton5i 8escribes itB 'Gran8 Corruption usuall5 involves the pa5ment of a huge Gcommission7 )i-e- a bribe, to Cin 'major contracts or concessions( )?,- %he scale of these ';ic;bac;s( )i-e- a bribe, various from loC6level government officials Cho are bribe8 b5 smaller firms to reneC routine suppl5 contracts to large6scale projects Chere there is a substantial impact on the government7s bu8get- &n such casesB the official receives ten to tCent5 percent of the contract value- %his sort of corruption '8istorts JtheK allocation of resources( because 8ecisions of Chich projects to un8erta;e are motivate8 the magnitu8e of the bribe rather than the practicabilit5 of the project- Conse=uentl5B 1en5a is rife Cith these t5pes of unsuccessful projectsB Chich are commonl5 calle8 'Chite elephants(- * Chite elephant is an 'en8eavor or venture that proves to be a conspicuous failure( )httpDEE8ictionar5-reference-comEsearchH=LChiteM2 elephant,- *n e:ample is the 1isumu )a cit5 in Cestern 1en5a, 4olasses plant- %he project Cas starte8 about 2< 5ears ago )3979,- 0ince thenB the plant has not been complete8 an8 no return has been garnere8 from the 3! billion 1en5a 0hillings investment )appro:imatel5 $0 N3?! million to8a5,- No one has been hel8 accountable for the loss of this mone5B but it is evi8ent that this project shoul8 never have been conceive8 because it Cas too capital intensive to be sustainable .

)httpDEECCC-ti;en5a-orgE8ocumentsEa8hilit2!-p8f,- *nother Chite elephant Cas the %ur;Cel Gorge Dam- Because of the secrec5 surroun8ing the contract bi88ing processB it is estimate8 that the 27 million $0D price tag for the 8am Cas 'more than 8ouble Chat it Coul8 have been( )httpDEECCC-nationau8io-comENeCsEDail5NationE2!332 E+eaturesE+eatures<-html,-

4uton5i also points out that 'Gran8 Corruption( is not restricte8 to high capital projects or large6 scale construction projects )?,- Consumer goo8s are also 'prime can8i8ates for pa5offs( because it is convenientl5 8ifficult to assess Chether the goo8s Cere 8elivere8 in the inten8e8 =uantit5 an8Eor =ualit5- 4uton5i cites an e:ample Chere 1en5a lost appro:imatel5 $0 N3-< million in 'irregular 8rug procurement b5 the 4inistr5 of /ealth( )7,-

Lootin#
&n 1en5an vernacular EnglishB looting is occupational frau8 of the largest scale- 4uton5i claims that the upshot of this form of occupational frau8 has severe 'macroeconomic implications( )7,Because of the scale of lootingB high6level public officials )up to the presi8ent, are involve8 in these looting scan8als- *n e:ampleB Chich has been haunting 1en5a for over a 8eca8e is the Gol8enberg case- &n 399 B 1en5a passe8 a laC to encourage 'e:porters to repatriate their har86 currenc5 earningsD mone5 8eposite8 b5 e:porters into 1en5aOs central ban; Coul8B un8er certain circumstancesB earn a 2 M premium( )httpDEECCC-globalpolic5-orgEnationsEcorruptEgovernmtE2 2E322 ;en5a-htm,- %his laC Cas to

establishe8 to jump6start the sluggish econom5- * billionaireB 1amlesh PattniB starte8 Gol8enberg &nternationalB in conjunction Cith the )noC6collapse8, E:change Ban;B to e:port gol8 an8 8iamon8s- Pattni negotiate8 Cith the government to increase the tCent5 percent premium to thirt56 five percent )httpDEECCC-globalpolic5-orgEnationsEcorruptEgovernmtE2 2E322 ;en5a-htm- Pattni

then 'presente8 fictitious e:port compensation claims for pa5ment b5 the Central ban;( )httpDEECCC-globalpolic5-orgEnationsEcorruptE;en5a-htm,- >hat shoul8 have imme8iatel5 rung 9

alarm bells is that 1en5a is not a major pro8ucer of either of gol8 or 8iamon8s- NonethelessB Pattni Cas able to 8efrau8 the Central Ban; an8 the s5stem Cith the ai8 of top6level government officialsB Chich implicate8 the former presi8ent )in office from 397.62 2,B Daniel *rap 4oiB ;e5 members

of his a8ministration an8 some of his famil5 members- &n the en8B the scan8al pillage8 as much as ? billion 1en5an shillings )$0 N.< million,B Chich Cas appro:imatel5 a fifth of 1en5an7s gross 8omestic pro8uct )httpDEECCC-Corl8press-orgE*fricaE3999-cfm,P

T$e Co%t o& Occupationa Frau! in 'en(a

&n the overvieC of three main categories of #ccupationalB several issues become salientD /oC much is #ccupational +rau8 costing the average 1en5an )microeconomic impacts,H /oC much is it costing the business )private sector, an8 the government )macroeconomic impact,H >hat are the social ramifications of occupational frau8H

Microecono)ic Ana (%i% o& Occupationa Frau! in 'en(a

&n or8er to =uantifiabl5 measure the impact that briber5 has on 1en5a7 population in generalB %ransparenc5 &nternational61en5a )%&61en5a,B set6up a surve5 in 2 3- BeloC is their abstract of

the stu85 the5 con8ucte8 )httpDEECCC-ti;en5a-orgE8ocumentsEurbanQbriber5Qin8e:-8oc,D Briber5B private pa5ments to public an8Eor private officials to influence 8ecision6 ma;ingB is the most prevalent manifestation of corruption- &n 1en5aB as in8ee8 elseChereB there is a critical 8earth of concrete information on the nature an8 inci8ence of corruption in generalB an8 briber5 in particular- Conse=uentl5B anti6 corruption efforts ten8 to be informe8 primaril5 b5 perceptions an8 anec8otal evi8ence%his report presents preliminar5 anal5sis of a stu85 b5 %ransparenc5 &nternational6 1en5a on the magnitu8e of briber5 in 1en5a- Base8 on a surve5 in Chich or8inar5 1en5ans report their 8ail5 encounters Cith corruption 6 Cho the5 bribeB hoC muchB 3

an8 for ChatB the stu85 is part of %&61en5a7s effort to inform the anti6corruption effort in Cith objectiveB rigorous research- %his stu85 see;s to go be5on8 perceptions of corruption to provi8e benchmar;s of integrit5 base8 on the actual inci8ence of corruption- %he surve5 con8ucte8 in 4arch an8 *pril 2 3 in NairobiB 4ombasaB 1isumuB El8oretB N5eri an8 4acha;os an8 respon8e8 to b5 33?9 in8ivi8ualsB has been use8 to estimate the magnitu8eB inci8ence an8 8irect financial cost of briber5 an8 pro8uce the 1en5a $rban Briber5 &n8e: )1$B&, 6 a league table of the inci8ence of briber5- )3,

0ummar5 of %&61en5a7s "esearch %&61en5a uncovere8 tren8s that are interesting an8 revealing- %his section Cill be importing several tables that illustrate the fin8ings of their results- +irstB an e:planation of '%he 1en5a $rban Briber5 &n8e:( from their report is beloC- %his in8e: is use8 in their stu85 an8 some of their charts are base8 on this informationD %he 1en5a $rban Briber5 &n8e: %he overall in8e: is an aggregate of si: in8icatorsB Chich capture 8ifferent 8imensions an8 impact of briber5B as folloCsD i&nci8enceD /oC often people are as;e8 for bribes in the organiFations that the5 8eal Cith iiPrevalenceD %he percentage of the population that is affecte8 b5 briber5 in an organiFationiii0everit5D Conse=uences of 8eclining to bribeB Chich ranges from unsatisfactor5 service to 8enial of service altogether )i-e- no bribeB no service, iv+re=uenc5D %he actual level of briber5 reporte8 in an organiFationB that isB hoC man5 bribes officials of the organiFation receive vCostD %he estimate8 cost of briber5 in an organiFation to the publicB measure8 as a 'briber5 ta:( in shillings per person viBribe siFeD %he average siFe of bribes pai8 to officials of the organiFation %he first three in8icatorsB inci8enceB prevalence an8 severit5 are percentages in the sample- %he other threeB fre=uenc5B cost an8 siFe of bribesB Chich are actual valuesB are scale8 b5 the highest value to obtain an in8e: Chere the highest value e=uals 3 - %he aggregate in8e: is the simple )i-e- unCeighte8, average of the si: in8ices%he in8e: ran;s 97 institutions for Chich the surve5 provi8e8 sufficient information for statisticall5 vali8 comparison- #ther organiFations are aggregate8 into five categoriesB namel5 '#ther Central Government(B #ther 0tate Corporation(B '#ther 33

Local *uthorit5(B 'Private 0ector )business R non6profit,( an8 'Embassies R &nternational #rganiFations(B ma;ing for <2 ran;ings in total- )%&61en5a 2, %he &nci8ence of Briber5 ?7M of the respon8ents7 interaction Cith public institutions result in briber5>ithout briber5B respon8ents claim there Cill be 'costl5 negative conse=uences( )%&61en5a ?, /ighest inci8ences of briber5 Cith these public institutions are in laC enforcement an8 regulator5 organiFationsI7.M of interactions involve bribing- )%&61en5a ?, P$"P#0E 3-"EG$L*%#"2 R L*> EN+#"CE4EN% 2- E4PL#24EN% !- 0E"@&CE0 9- B$0&NE00 <- #%/E" %#%*LE4E*N
%able from %&61en5a7s report pg- ?

BRIBER* INCIDENCE )M, 77-. ?2-. <9<<-! <<-? ?9-.

"E0P#N0E0 N$4BE" 2B27? 23< !B .7 !<3 !9 ?B!39 M #+ %#%*L !?!-9 9.-9 <-? ?-2 3 -

32

4agnitu8e of Briber5 %he majorit5 of bribes are small amounts pai8 routinel5- 7<M of the transactions involve bribes beloC $0 N3< on a 8ail5 basis- &n $0D this is a small sumB but as 5ou Cill see later onB for an average 1en5an $0 N3< is a significant portion of their income- )%&61en5a 7, %he average urban 1en5an for;s over 3? bribes to private an8 public institutions per a month )%&61en5a 7,Civil servants )emplo5ees of the central governmentB local government an8 state companies, are the most bribe8B accounting for 99M of transactions involving bribes an8 97M of the value of the total bribes- )%&61en5a 7,
SI+E AND FRE,UENC* OF BRIBES REPORTED PE"CEN%*GE #+ B"&BE"2 %"*N0*C%&#N0 *4#$N% )10/, E@E"2 >EE1L2 4#N%/L2 2E*"L2 ). 10/ L N3 $0D, D*2

%#%*L 9!-9 29-2 39-7 3 -9 9-? 3-2 -7 -! 3 2-3 9-3 <-9 32-? 3?-7 37-? 2?-. 39-7 3 -

2 or less 2 6< < 63 3 6< < 63 3 6< < 63 3 S %#%*L M #+ %#%*L P"#CEED0 2 or less 2 6< < 63 3 6< < 63 3 6< < 63 3 S %#%*L
%able from %&61en5a7s report pg- 7

93-7 2 -7 33-? 7-< !-? -? -? -2 .?-? 2!-< 9-2 9-3 3!9-3 22-9 3 -2 79-

3-< 2-9 2-2 3-< -7 -2 - 2 - 2 .-< -3 -9 -. 3-9 2-9 !-9 -. 33 -7

-7 3-9 3-2 -! -! -3 -3 9-? - ! -2 -! 3-< 3-3 9-< 2-7 2-. 3!-3

- ! - 9 - < - 9 - < - 9 - 3 - 3 -!9 - 3 - 2 -32 -37 -?9 -99 -72 2-3?

3!

Cost of Briber5 %his is perhaps one of the most interesting fin8s from %&61en5a7s surve5 *ppro: !3M of a respon8ent7s monthl5 income goes into 'briber5 ta:( )i-e- briber5 pa5ments assuming that the bribing ta: onl5 impacts the househol8s )i-e- briber5 ta: for private enterprises is assume8 to be none, )%&61en5a ., &f share8 betCeen enterprises )impacting their profits,B the househol8 bribing ta: Coul8 be 3<-<M an8 3-9 M of the turnover for enterprises- *ssuming that gross margin is about tCent5 percent for private companiesB then this 3-9 M is actuall5 9M of the gross margin- )%&61en5a ., Central government comprises ?.M of this monthl5 bribing ta:- 0tate6oCne8 corporations account for 3.M an8 local government officials 33M- )%&61en5a ., BRIBER* COST ON -OUSE-OLDS AND BUSINESSES ). 10/ L 3 $0D, 0cenario 3D 3 M inci8ence on househol8s *verage income of respon8ents per month 1sh- 2?B .?Briber5 ta: per person 1sh- .B3..Briber5 ta: as proportion of income *..4 < 0cenario 2D 3 M inci8ence on enterprises *verage annual turnover 1sh- .-2 million *verage briber5 ta: per business enterprise 1sh- 293B9?7Briber5 ta: as M of turnover :.= < 0cenario !D < E< inci8ence on househol8 an8 enterprises Briber5 ta: per person 9 B 99-2 *s M of personal income .#.)< Briber5 ta: per business enterprise 39<B7!!Briber5 ta: as M of turnover 3-9 M
%able from %&61en5a7s report pg- .

39

'EN*A BRIBER* INDE. (RAN'ING INSTITUTIONS" %able from %&61en5a7s report pg- 9
. 2 ! 9 < ? 7 . 9 3 33 32 3! 39 3< 3? 37 3. 39 2 23 22 2! 29 2< 2? 27 2. 29 ! !3 !2 !! !9 !< !? !7 !. !9 9 93 92 9! 99 9< 9? 97 9. 99 < <3 <2 'EN(% "O&ICE 4inistr5 of Public >or;s &mmigration Department 4inistr5 of Lan8s Nairobi Cit5 Council Tu8iciar5 4ombasa 4unicipal Council #ther Local *uthorities Provincial *8ministration Prisons Department 1en5a Ports *uthorit5 "egistrar of Persons Public /ospitals )e:cl- ;nh, 1isumu 4unicipal Council 1en5a "evenue *uthorit5 *ttorne5 GeneralOs Chambers %eachers 0ervice Commission +orestr5 Department 4inistr5 of Local Government *gricultural +inance Corporation 4otor @ehicle Licensing Dept Embassie0 R &nternational #rgs 4inistr5 of /ealth #ther Central Government 1en5a Bureau of 0tan8ar8s Posta Corporation 1en5atta National /ospital 1en5a *&Ports *uthorit5 Dept- of >eightsR 4easures National >aterR Pipeline Corp %el;om 1en5a #ther 0tate Corporations 4inistr5 of E8ucation 1en5a PoCerR Lighting CoNational 0ocial 0ecurit5 +un8 Catering Lev5 %rustees 1en5a "ailCa5s Corp 1en5a Nat- E:aminations Council 1en5a 0ugar *uthorit5 1en5a %ea Dev- *genc5 National /ospital &nsurance +un8 4inistr5 of *griculture 4inistr5 of +inance /igher E8ucation Loans Boar8 1en5a Commercial Ban; 1en5a Broa8casting Corporation $niversit5 of Nairobi Commissioner of &nsurance National Ban; of 1en5a Private 0ector 1en5a >il8life 0ervice Central Ban; of 1en5a ;=.) 93!?-3 !9-. !!!2-! !2-3 !3-< 29-< 29-9 29-! 2.-9 27-7 2?-7 2?-< 2?-3 2<-9 29-9 2!-7 2!-< 2!22-9 2 -. 2 -7 2 -3 3.-. 3.-7 3.-9 37-7 37-< 37-! 3?-. 3?-7 3<-? 3<39-9 39-7 39-! 32-< 32-2 33-. 33-2 9-! .-7 .-? .-! .-! 7-9 7-2 <-? <-2 -2

1en5a $rban Briber5 &n8e: "an;ings %hese are the ran;ings base8 on the overall Briber5 &n8e:- %he 1en5a police is the top this ran;ing at ?.-7- %he secon8 that folloCs at a 8istant secon8 at 93 is the 4inistr5 of Public >or;s- #ne 3<

=uic; observation is that the 1en5a Police reall5 stan8s outs from the other institutions- +rom thisB it is clear that the 1en5ans have little faith in the integrit5 of their police force- )%&61en5a 9,

3?

Briber5 &nci8ence "an;ings

3 2 ! 9 < ? 7 . 9 3 33 32 3! 39 3< 3? 37 3. 39 2 23 22 2! 29 2< 2? 27 2. 29 ! !3 !2 !! !9 !< !? !7 !. !9 9 93 92 9! 99 9< 9? 97 9. 99 < <3 <2

BRIBER* INCIDENCE B* INSTITUTION

%able from %&61en5a7s report pg- 3
7L&1EL&/##D #+ ENC#$N%E"&NG B"&BE"2> <8 4#4B*0* 4$N&C&P*L C#$NC&L 1EN2* P#L&CE P"&0#N0 DEP*"%4EN% 4&N&0%"2 #+ L*ND0 *%%#"NE2 GENE"*LO0 C/*4BE"0 N*&"#B& C&%2 C#$NC&L *G"&C$L%$"$*L +&N*CNCE C#"P4&N&0%"2 #+ P$BL&C >#"10 1&0$4$ 4$N&C&P*L C#$NC&L &44&G"*%&#N DEP*"%4EN% %E*C/E"0 0E"@&CE C#44&00&#N "EG&0%"*" #+ PE"0#N0 P$BL&C /#0P&%*L0 )EUCL-1N/, +#"E0%"2 DEP*"%4EN% P"#@&NC&*L *D4&N&0%"*%&#N 4&N&0%"2 #+ L#C*L G#@E"N4EN% 1EN2* P#"%0 *$%/#"&%2 T$D&C&*"2 #%/E" CEN%"*L G#@E"N4EN% 1EN2*%%* N*%&#N*L /#0P&%*L 4&N&0%"2 #+ /E*L%/ 4#%#" @E/&CLE L&CEN0&NG DEP% N*%&#N*L >*%E"R P&PEL&NE C#"P DEP%- #+ >E&G/%0R 4E*0$"E0 1EN2* "E@EN$E *$%/#"&%2 #%/E" L#C*L *$%/#"&%&E0 4&N&0%"2 #+ ED$C*%&#N 1EN2* B$"E*$ #+ 0%*ND*"D0 P#0%* C#"P#"*%&#N 1EN2* N*%- EU*4&N*%&#N0 C#$NC&L 1EN2* *&P#"%0 *$%/#"&%2 C*%E"&NG LE@2 %"$0%EE0 #%/E" 0%*%E C#"P#"*%&#N 1EN2* 0$G*" *$%/#"&%2 1EN2* %E* DE@- *GENC2 N*%&#N*L 0#C&*L 0EC$"&%2 +$ND %EL1#4 1EN2* 1EN2* "*&L>*20 C#"P 4&N&0%"2 #+ *G"&C$L%$"E N*%&#N*L /#0P&%*L &N0- +$ND $N&@E"0&%2 #+ N*&"#B& /&G/E" ED$C*%&#N L#*N0 B#*"D 1EN2* P#>E"R L&G/%&NG C#N*%&#N*L B*N1 #+ 1EN2* 4&N&0%"2 #+ +&N*NCE 1EN2* C#44E"C&*L B*N1 C#44&00&#NE" #+ &N0$"*NCE 1EN2* B"#*DC*0%&NG C#"P#"*%&#N E4B*00&E0R &N%E"N*%&#N*L #"G0 1EN2* >&LDL&+E 0E"@&CE P"&@*%E 0EC%#" CEN%"*L B*N1 #+ 1EN2* 93-? 9 -9 9 -9 .?-7 .?-3 .9-. .9-? .!-! .3-7 .3-9 .3-9 . -? 79-9 77-! 7?-7 7?-< 7<-9 79-9 79-3 7!-9 7!72-! 7 -< 7 ?!-7 ?!-9 ?2-< <9<.-9 <7-9 <?-9 <9-< <3-? < < 99-? 9.-7 9.9.92-? 93-7 93-2 !7-< !!-! ! 2.-? 2.-! 2<-9 29-2 23-7 33-2 -

%his list is a ran;ings base8 on the li;elihoo8 of encountering briber5- +or instanceB Cith the 1en5a Police )ran;e8 secon8,B one of ten 1en5ans Cho interact Cith the police is going to Cal; 37

aCa5 Cithout having bribe8 the institution- >hat is notable about this ran;ing is that over one6 thir8 of the organiFations in this list have a briber5 inci8ence greater than 7<M )one in four people obtains =ualit5 service Cithout incurre8 a bribing fee,- %his 8emonstrates hoC much briber5 is reall5 a core part of an5 interaction Cith a public institution in 1en5a- #n a positive noteB the Central Ban; of 1en5a has an incre8ibl5 loC inci8ence of briber5- )%&61en5a 3 ,

3.

0everit5 of Briber5

SE/ERIT* OF BRIBER* B* INSTITUTION

7< CITIN! ?NO 3RI3E NO $ER9ICE@8

%able from %&61en5a7s report pg- 33

3 2 ! 9 < ? 7 . 9 3 33 32 3! 39 3< 3? 37 3. 39 2 23 22 2! 29 2< 2? 27 2. 29 ! !3 !2 !! !9 !< !? !7 !. !9 9 93 92 9! 99 9< 9? 97 9. 99 < <3 <2 P"&0#N0 DEP*"%4EN% 4#4B*0* 4$N&C&P*L C#$NC&L 1EN2* P#L&CE 4&N&0%"2 #+ L*ND0 &44&G"*%&#N DEP*"%4EN% "EG&0%"*" #+ PE"0#N0 1EN2* P#"%0 *$%/#"&%2 P"#@&NC&*L *D4&N&0%"*%&#N 1&0$4$ 4$N&C&P*L C#$NC&L %E*C/E"0 0E"@&CE C#44&00&#N N*&"#B& C&%2 C#$NC&L 4&N&0%"2 #+ P$BL&C >#"10 4&N&0%"2 #+ L#C*L G#@E"N4EN% 1EN2* B$"E*$ #+ 0%*ND*"D0 +#"E0%"2 DEP*"%4EN% T$D&C&*"2 #%/E" L#C*L *$%/#"&%&E0 1EN2* "E@EN$E *$%/#"&%2 4#%#" @E/&CLE L&CEN0&NG DEP% 4&N&0%"2 #+ /E*L%/ 1EN2* *&P#"%0 *$%/#"&%2 P$BL&C /#0P&%*L0 )EUCL-1N/, *G"&C$L%$"*L +&N*NCE C#"P *%%#"NE2 GENE"*LO0 C/*4BE"0 DEP%- #+ >E&G/%0R 4E*0$"E0 #%/E" CEN%"*L G#@E"N4EN% 4&N&0%"2 #+ ED$C*%&#N 1EN2* "*&L>*20 C#"P C*%E"&NG LE@2 %"$0%EE0 N*%&#N*L >*%E"R P&PEL&NE C#"P #%/E" 0%*%E C#"P#"*%&#N P#0%* C#"P#"*%&#N %EL1#4 1EN2* N*%&#N*L 0#C&*L 0EC$"&%2 +$ND 1EN2* 0$G*" *$%/#"&%2 1EN2* %E* DE@- *GENC2 4&N&0%"2 #+ *G"&C$L%$"E 1EN2* N*%- EU*40 C#$NC&L 4&N&0%"2 #+ +&N*NCE 1EN2*%%* N*%&#N*L /#0P&%*L 1EN2* B"#*DC*0%&NG C#"P C#44&00&#NE" #+ &N0$"*NCE 1EN2* P#>E"R L&G/%&NG C#N*%&#N*L /#0P&%*L &N0- +$ND E4B*00&E0R &N%E"N*%&#N*L #"G0 /&G/E" ED$C*%&#N L#*N0 B#*"D 1EN2* C#44E"C&*L B*N1 1EN2* >&LDL&+E 0E"@&CE P"&@*%E 0EC%#" N*%&#N*L B*N1 #+ 1EN2* $N&@E"0&%2 #+ N*&"#B& CEN%"*L B*N1 #+ 1EN2* ?7-! ?!-9 ?2-9 <7-< <!-3 99-2 97-< 9?-9 9?-! 9<-. 9<-7 93-7 93-2 939 -9 !9-3 !7-3 !!-< !2-9 !3-3 ! -9 ! -. ! -. ! -? ! 29-? 2.-3 2.27-! 2<29-2 22-3 39-7 373?-7 3?-7 3?3<-. 3<39-9 33-3 3 -9 3 -? 3 -! ?-3 <-9 <-< 9-! 9!-9 -

39

%his list is a ran;ing of institutions that are most e:torting in their briber5 e:pectations- %he percentage measure in8icates the li;elihoo8 that 5ou are going to pa5 a bribe to receive a service*s Cith the other listsB the 1en5a Police is amongst the top three institutions- )%&61en5a 33,

BRIBER* TA. PER PERSON B* INSTITUTION 10/ ). 10/ L 3 $0D,

%able from %&61en5a7s report pg- 32
3 2 ! 9 < ? 7 . 9 3 33 32 3! 39 3< 3? 37 3. 39 2 23 22 2! 29 2< 2? 27 2. 29 !3 !2 !! 1EN2* P#L&CE &44&G"*%&#N DEP*"%4EN% T$D&C&*"2 1EN2* "E@EN$E *$%/#"&%2 #%/E" L#C*L *$%/#"&%&E0 N*&"#B& C&%2 C#$NC&L 1EN2* P#>E"R L&G/%&NG C#4&N&0%"2 #+ L*ND0 1EN2* P#"%0 *$%/#"&%2 E4B*00&E0R &N%E"N*%&#N*L #"G0 P"#@&NC&*L *D4&N&0%"*%&#N %EL1#4 1EN2* P"&@*%E 0EC%#" P$BL&C /#0P&%*L0)EUCL-1N/, 4#%#" @E/&CLE L&CEN0&NG DEP% "EG&0%"*" #+ PE"0#N0 N*%&#N*L 0#C&*L 0EC$"&%2 +$ND 4&N&0%"2 #+ P$BL&C >#"10 #%/E" 0%*%E C#"P#"*%&#N 1&0$4$ 4$N&C&P*L C#$NC&L 1EN2*%%* N*%&#N*L /#0P&%*L *%%#"NE2 GENE"*LO0 C/*4BE"0 %E*C/E"0 0E"@&CE C#44&00&#N 1EN2* *&P#"%0 *$%/#"&%2 N*%&#N*L /#0P&%*L &N0- +$ND P#0%* C#"P#"*%&#N 4#4B*0* 4$N&C&P*L C#$NC&L 4inistr5 of /ealth 1EN2* B$"E*$ #+ 0%*ND*"D0 #%/E" CEN%"*L G#@E"N4EN% +#"E0%"2 DEP*"%4EN% P"&0#N0 DEP*"%4EN% 2 ?7 3 99 3 9 797 < 9 !92 !?! 2<. 392 327 329 339 9? 79 7! ? !9 !2 2? 23 39 33 33 .-? ?-97 <- ? 9-92 !-93 !-.2 3-79 3-!! 3-27 3 2 ! 9 < ? 7 . 9 3 33 32 3! 39 3< 3? 37 3. 39 2 23 22 2! 29 2< 2? 27 2. 29 ! !3 !2 !!

FRE,UENC* OF BRIBER* B* INSTITUTION

73RI3E$ "ER C&IENT/-ONTA> 3RI3E$ ?"ER C%"IT%@8

%able from %&61en5a7s report pg- 32

1en5a Police #ther Local *uthorities Public /ospitals )e:cl- 1Nh, *ttorne5 GeneralOs Chambers 4inistr5 of Lan8s 4ombasa 4unicipal Council Provincial *8ministration Nairobi Cit5 Council Posta Corporation "egistrar of Persons Tu8iciar5 4inistr5 of Local Government +orestr5 Department 1isumu 4unicipal Council 4inistr5 of Public >or;s 1en5a Ports *uthorit5 &mmigration Department *gricultural +inance Corp 4otor @ehicle Licensing Dept 4inistr5 of /ealth 1en5a "evenue *uthorit5 Prisons Department 1en5a *&Ports *uthorit5 1en5a PoCerR Lighting Co1en5atta National /ospital %eachers 0ervice Commission 1en5a Broa8casting Corp #ther 0tate Corporation National /ospital &ns +un8 1en5a Nat- E:ams Council #ther Central Government 4inistr5 of +inance 1en5a Bureau of 0tan8ar8s 3 -< ?-. 9-! !-7 !-? !-3 !-3 !2-7 2-? 2-9 2-9 2-9 2-2 23-9 3-9 3-9 3-. 3-< 3-< 3-9 3-! 3-! 3-2 3-2 3-3 3-3 3-3 3-3 3-3 3-. ?-7 3-! -? -9 -9 -2 -. 3-2 -9 -< - 9 - 9 -2 - 9 -2 -9 - 2 -! -3 -9 -3 -3 -7 -3 -3 - ! -3 -3 - 2 - 2 - 2 - !

Briber5 Cost an8 +re=uenc5 of Bribes *s e:pecte8 the police force e:torts the largest amount of bribes b5 a fair margin over other institutionsB Chich accounts for a thir8 of the total briber5 ta: pai8 b5 each urban 1en5an resi8ent%his ma;es sense Chen 5ou loo; at the fre=uenc5 of briber5 columnB Chich ran;s the police force Cith a fre=uenc5 of 3 -< bribes per month per urban resi8ent- )%&61en5a 32,

23

Macroecono)ic Ana (%i% o& Occupationa Frau! in 'en(a

#ne constant complaint that 1en5ans have ha8 about the ta:es in the 4oi6era is that there Cas little tangible evi8ence to account for the ta:es for;e8 over to the government- &n this sectionB & Cill anal5Fe Chat portion of the 1en5a7s gross 8omestic pro8uct Cas sCin8le8 b5 occupational frau8 in 399 7s- &n his 4asters 8issertation title8 'ill (orruption )"er *top +e"eloping in !enya,- *itan 0Flapa; i8entifie8 four components of occupational frau8 that are ver5 costl5 to 1en5a7s citiFensD Caste8 e:pen8itureB un8elivere8 goo8s or servicesB irregular pa5ments an8 uncollecte8 or unsurren8ere8 revenue )httpDEECCC-ti;en5a-orgE8ocumentsE8issertation-8ocB 9<,-

>aste8 E:pen8itures >aste8 e:pen8iture results in situations Chere fun8s are embeFFle8 or spuriousl5 mismanage8%he Chite elephants projects that & referre8 to as e:amples of 'Gran8 Corruption( are also cases of e:pen8iture Castage- *nother source of embeFFlement that 0Flapa; cites are .ara bees )0Flapa; 9<,- .ara bee is the 0Cahili term for 'cr5 for help(- %his 'cr5 for help( is a communit5 rall5ing together to accomplish a goal- +or instanceB a communit5 ma5 Cant to buil8 a primar5 schoolB so the5 Cill hol8 a hara bee to fun8raise for it- >hile the concept of the hara bee has noble originsB Cith corruptive elements presentB the intentions of hara bees have been a8ulterate8- %here is little accounting for the fun8 amasse8 from hara beesB Chich has alloCe8 fun8s to be spen8 on 'unspecifie8 or unapprove8 activities( )0Flapa; ! ,- E:amples of these misgui8e8 hara bees are government hel8 hara bees sponsore8 b5 public officials to procure fun8s for projects- BeloC is a table from 0Flapa;7s 8issertation that lists the estimate8 annual e:pen8iture loss from the Caste8 fun8s )9.,-

22

3993 3992 399! 3999 399< 399?

ANNUAL 0ASTED E.PENDITURES 'sh./ U$B %nnual totals fo2 < Change f2om wasted eCpend1tu2e U$B p2eced1ng Dea2 27-< . $0N <9-<33 million !2-237 $0N 3?9-9?! million S 2!!M <.- 3 $0N ?97-2!< million S <.7M <?- <3 $0N 2<9-.?? million 6 ?3M <3-9! $0N 397-<72 million 6 9.M <7-33< $0N 93 -37! million S 2 9M

Notable eEents Election 5ear

Pre6Election 2ear

)CR*6G report 399 E39936399<E399?B compile8 b5 CGD, %able from 0Flapa;B pg- 9.

&t is notable that there have been siFeable fluctuations in the Caste8 e:pen8iture from 5ear to 5ear>hile not all the variations can be e:plaine8B 0Flapa; points out that there is rise in Castage just beforeB 8uring an8 after the election 5ears- &n 3992B there Cas a !2.M rise in the number of hara bees hel8 b5 public officials- &t is highl5 suspecte8 that some of the procee8s of these hara bees Cere siphone8 to fun8ing election campaigning an8 the affluent lifest5les of these officials-

$n8elivere8 Goo8s or 0ervices $n8elivere8 goo8s or services are goo8s or services that are either un8elivere8 completel5 or 8elivere8 Cithout the inten8e8 =uantit5 or =ualit5- &n some casesB goo8s or services are 8elivere8 unor8ere8B re=uiring a pa5ment for an uninten8e8 purchase- 0ince the strict protocols regar8ing purchasing authoriFationB 8ocumentations are not a8here8 toB it is eas5 to 8efrau8 governmental agencies )0Flapa; !3,- *n e:ample is the $0 N3-< million that 1en5a7s 4inistr5 of /ealth lost from un8elivere8 8rug )refer to 'Gran8 Corruption( subsection in the '0tate of Corruption )#ccupational +rau8, in 1en5a( section,-

2!

&rregular Pa5ments %he Consoli8ate8 +un8 is 1en5a7s 0tate fun8 B Chich '0ections 99 R 3 of the Constitution of

1en5a state that all pa5ments ma8e from the Consoli8ate8 +un8 must first be approve8 b5 parliament-() 0Flapa; !3,- &rregular pa5ments are in star; violation this legislation- %he government misuse8 irregular pa5ments 'to settle private 8ebtsV pa5ments for projects that have 5et to be bu8gete8 an8 approve8 b5 parliamentV unapprove8 over8rafts an8 8ebts hel8 b5 ministries an8 parastatalsV unauthoriFe8 purchasing of propert5V etc-() 0Flapa; !3,-

BeloC are some e:amples that 0Flapa; cite8 )!2,D %he 8irect 8ebiting of fun8s totaling 1sh- 39-77< billion )$0 N! Central Ban; of 1en5a to private ban; accounts Public renovation of the 1en5a &nternational Conference Center )oCne8 b5 1*N$B the ruling part5 in the 4oi era, the 8evelopment of a Department of Defense )DoD, )falls un8er the #ffice of the Presi8entB #P, project that Cas un;noCnB unaccounte8 forB unconstitutionalB an8 totale8 1sh- .99-329 million )$0 N3. million, %he construction of El8oret *irport R purchase of a private jet for the #P Cith government fun8s *n8 rent free use of N5a5o /ouse )public propert5, b5 1*N$ enterprises million, from the

29

%he aggregate of irregular pa5ments are tabulate8 beloC for each 5earD (ea2 3993 3992 election 5ear 399! 3999 399< 399? pre6election 5ear ANNUAL IRREGULAR PA*MENTS 'sh./ U$B %nnual totals fo2 I22egula2 "aDments 27-< . N9-3?7 4 !2-237 N32 4 <.- 3 N37< 4 <?- <3 N973 4 <3-9! N! 2 4 <7-33< N2.? 4 < Change f2om p2eced1ng Dea2 S27.M S9?M S3?9M 6!?M 6<-! M

)CR*6G report 399 E39936399<E399?B compile8 b5 CGD, %able from 0Flapa;B pg- 72

*gainB there is a pea; of irregular pa5ments 8uring the first election 5earB Chich is not surprising since the public Cas aCare that the ruling part5 use8 public mone5 for fun8ing their campaigning initiatives-

$ncollecte8 an8 $nsurren8ere8 "evenue %he poor collection of revenues )ta:esB feesB tariffsB etc, has been a significant source of income loss for the 1en5a government- BeloC are some of the common causes for this loss in revenue )0Flapa; !2,D $ncollecte8 8ut5 )i-e- falsification of 'tariff classifications( an8 e:change ratesB inaccurate e:emptionsB etc-, Perversion of @*% )@alue *88e8 %a:, e:emptions Non6submission of collecte8 revenue to the Consoli8ate8 +un8 $ncollecte8 rent on 0tate properties

2<

%he impact of these lost revenues is tabulate8 beloCD ANNUAL UNCOLLECTED AND UNSURRENDERED RE/ENUE 'sh./ %nnual totals fo2 < Change f2om U$B Uncollected and p2eced1ng Dea2 Unsu22ende2ed ReEenue 3993 27-< . $507.44 million 3992 election 5ear !2-237 $2,264.62 million +346.28% 399! <.- 3 $413.26 million -81.75% 3999 <?- <3 $492.11 million +19.08% 399< <3-9! $532.55 million +8.22% 399? pre6election 5ear <7-33< $1,016.26 million +90.83% 2ear
)CR*6G report 399 E39936399<E399?B compile8 b5 CGD, %able from 0Flapa;B pg- .9

*s Cith the other tablesB it is evi8ent that before an8 8uring election 5earsB there is a rise in uncollecte8 or unsurren8ere8 revenues- %his is consistent Cith the pressure to 8ivert fun8s toCar8s campaign activities-

0ummar5 of the 4acroeconomic &mpact *nal5sis of #ccupational +rau8 in 1en5a %he information from the four t5pes of large6scale occupational frau8 is consoli8ate8 beloC using the 8ata collecte8 in 0Flapa;7s 8issertation*bbreviations in table
>ED $GD &PD $R$"D >*0%ED EUPEND&%$"E $NC#LLEC%ED G##D0 &""EG$L*" P*24EN%0 $NC#LLEC%ED *ND $N0$""ENDE"ED "E@EN$E

1//1 1//2 1//0 1//4 1//% 1//1

ANNUAL COSTS OF OCCUPATIONAL FRAUD 7U$B -8 'sh./U$B /E U! I" UFUR Total 27-< . <9-<33 9-3?7 9-3?7 < 7-9!9 #0=.;:# !2-237 3?9-9?! 7.-<99 93<-<29 2B2?9-?3< :>0;+.4.= <.- 3 ?97-2!< ?-! ? 37<-<79 93!-2<7 .>*++.*)= <?- <3 2<9-.?? 973-!2! <3!-?72 992-33! .>)0*.+:# <3-9! 397-<72 99-793 ! 2-.9! <!2-<99 .>.*4..*# <7-33< 93 -37! 2-29! 2.<-99 3B 3?-2?2 .>))..)=*

%able from 0Flapa;B pg- <?

2?

FDI (FOREIGN DIRECT IN/ESTMENT" AND GDP /ERSUS COST OF OCCUPATIONAL FRAUD !D" DI DI as < of Co22upt1on as < Total 1//1 1//2 1//0 1//4 1//% 1//1 U$B.B 9! .B 2 9B977 7B39. 9B 97 9B2 ? U$B' 3.B9 ?B 3B< 9B !!B 3!B !D" -2! - 7 - ! - ? -!? -39 of !D" 7-99 !?-99 2?-3! 2<- . 32-<! 39-2< $0N 4 #0=.;:# :>0;+.4.= .>*++.*)= .>)0*.+:# .>.*4..*# .>))..)=*

%able from 0Flapa;B pg- <?

%he 8ata above is 8emonstrative of the costliness of corruption to the 1en5an econom5- >orse of allB these figures are li;el5 to be conservative estimates consi8ering that there Cas probabl5 unreporte8 inci8ences of occupational frau8- %he folloCing are some tren8s the figures suggestD %here is some correlation betCeen +D& )+oreign Direct &nvestment, an8 the level of #ccupational +rau8 )both as percentage of GDP, in a given 5earIin 5ears of high corruptionB +D&EGDP seems to 8ip slightl5)0Flapa; <2, #ther factorsB such as the ethnic cleansing that too; place before the first elections in 3992 an8 the rampant corruption in the same 5ear as motivating factors to re8uce +D& &t has been establishe8 that 8eclining GDP also results in 8eclining +D& )0Flapa; <2,/igh rates of occupational frau8 also hamper the groCth of GDP )loo; at 399!B the 5ear after high rates of occupational frau8 in 3992,-

Ra)i&ication% o& Occupationa Frau! in 'en(a

%here are man5 8evastating conse=uences of the rampant occupational frau8 in 1en5a- %his section Cill e:plore some of these ramifications in the public sectorB private sector an8 then on the average 1en5an-

27

Public sector %he e:cessive occupational frau8 has cripple8 the public institutions that are establishe8 to serve the countr5- &n this sectionB Ce Cill loo; at some of the critical public services an8 hoC the5 are affecte8 b5 occupational frau8 LaC enforcementD *s Ce saC in %&61en5a7s urban briber5 in8e:B the 1en5a Police is one of the most corrupt institutions in the public sector- %he ju8icial s5stem folloCs the 1en5an police in occupational frau8- >hen the laC enforcement agencies are the most corrupt in the countr5B the moral fiber of the Chole countr5 is essentiall5 ero8e8 E8ucationD Because of the illicit siphoning of public fun8sB there is little left for the 8evelopment of a goo8 e8ucation infrastructure- %he high6levels of occupational frau8 in the 399 7s have 8eteriorate8 the progress ma8e in the first 2 5ears of post6in8epen8ence 1en5a- 0ome of the critical issues plaguing e8ucation are the loC salaries of e8ucators an8 8eclining rates of enrollment in some regions /ealthD Li;e e8ucationB the little resources left over from occupational frau8 are ina8e=uate to 8eal Cith the ! million 1en5ans- Couple8 Cith the /&@E*&D0 crisisB Chich has 8evastate8 the countr5B rampant corruption has cripple8 the countr57s abilit5 to respon8 the epi8emic )e8ucational campaignsB provi8ing healthcare for the illB etc, Private 0ector %he high rates of occupational frau8 have ma8e a significant bloC to the private sector- &n the he58a5s of corruption in the 399 7sB 1en5a7s econom5 Cas e:periencing stagflationB Chere inflation Cas on the rise an8 as the econom5 Cas stagnatingB Cith less than 3M groCth in GDP from 5ear to 5ear- %his section briefl5 highlights some of the most pressing issues an8 concerns for the private sector regar8ing occupational frau8 #verhea8 of occupational frau8D #ccupational frau8 a88s to the operating overhea8 of an5 enterprise- +or instanceB the briber5 ta:es can comprise of up to 3 M of the gross margin in

2.

some firms- *88itionall5B public servicesB such as electricit5B that encounter perio8ic glitchesB contribute to this operating overhea8- *nother a8verse conse=uence is that starting an enterprise is even more e:pensive than it shoul8 beB so it 8iscourages innovation an8 entrepreneurism $ncertaint5 an8 ris;D Compoun8e8 Cith the overhea8 of occupational frau8B there is an a88e8 element of uncertaint5 an8 ris; involve8- %his uncertaint5 8iscourages investors as it is 8ifficult to estimate hoC much capital an8 resources to allocate 8ue the variabilit5 of briber5 ta:esB embeFFle8 fun8sB etc- %imelines are also 8ifficult to ascribe since there are more possibilities of operational 8ela5s Cith occupational frau8 being prevalent )httpDEECCC-clarion;en5a-orgE8ocumentsEinitiatives-p8fB 32., $nfair competitionD Contract bi8s are sometimes con8ucte8 base8 on the siFe of the bribe rather than the feasibilit5 an8 efficac5 of the propose8 project )4u;on5i ?,- %his inhibits open6mar;et st5le competitiveness amongst firms an8 alloCs projects an8 un8erta;ings that are more costl5 an8 inefficient to prevail- %his ma;es it especiall5 8ifficult for local firms to compete Cith foreign firms that have much more capital for bribing croo;e8 public sector officials%he *verage 1en5an #ccupational frau8 has the most 8evastating effect on average 1en5an citiFen- &t is estimate8 that half the 1en5an population )3< of the ! million, lives beloC povert5 line )httpDEECCC-cia-govEciaEpublicationsEfactboo;EgeosE;e-html,- #ccupational frau8 has 8efinitel5 been an influencing factor in the povert5- %his section Cill illustrate hoC it has ha8 such an influence Briber5 ta:D *s %&61en5a7s $rban Briber5 surve5 reporte8 )refer to 4icroeconomic &mpact *nal5sis of #ccupational +rau8 in 1en5a A %&61en5a7s 0urve5 section in this paper,B briber5 ta: accounte8 for about ! M of the urban 1en5an monthl5 salar5- %his couple8 29

Cith the alrea85 high income ta:es )about ! M,B onl5 leaves the t5pical 1en5an Cith 9 M of their gross income available- Even CorseB the briber5 ta: is not prorate8 Cith loCer income levelsB so poorer 1en5ans are more a8versel5 affecte8 b5 this briber5 ta: Public 0ector 8eclineD 0ince the public is un8er6serving the citiFens 8ue to the occupational frau8B 1en5ans have to spen8 their oCn resources to compensate for the sub6functional public services- %he poorer 1en5ans are most affecte8 b5 this Private sector 8ifficultiesD $nemplo5ment is one of the most challenging issues facing 1en5a to8a5- %he stagnating econom5 of the late 399 7sB Chich is an offshoot of the high rates of occupational frau8B has ma8e it 8ifficult for creation of emplo5ment in 1en5a-

ORI!IN$ O OCCU"%TION%& R%UD IN 'EN(%

&n the prece8ing sectionsB the enormit5 of occupational frau8 in 1en5a has been reveale8- %he ne:t obvious step is to propose Ca5s to Cee8 out this insi8ious culture of corruption that has tightl5 Coven itself in 1en5a7s moral fiber- Before this can be attempte8B the origins of these corruptive elements in 1en5a have to be i8entifie8 an8 un8erstoo8- &n his paperB 4uton5i traces occupational frau8 bac; to earl5 5ears of 1en5a as an in8epen8ent nation until the height of the corruption in the 399 7s Earl5 Post6&n8epen8ence CultureD +rom the onset of in8epen8ence in 39?!B 1en5a ha8 alrea85 8evelope8 an elite capitalist class Chere 'substantial personal CealthB hoCever ac=uire8B seeme8 to be a con8ition of success in politics( )4uton5i 7,- &n factB public officialsB particularl5 as the5 climbe8 up the la88erB Cere measure8 b5 the 8egree the5 lea8 affluent livesIthe more ostentatious the official CasB the more esteem he Coul8 garner+urthermoreB election campaigns for the various constituencies often involve8 the can8i8ates 8ispla5ing their bountiful nature b5 giving large cash 8onations at local hara bees- Conse=uentl5B elections became e:orbitantl5 e:pensive in the 397 7s an8 have !

continue8 to even more e:pensive to8a5 )4uton5i .,- Consi8ering this tren8B it e:plains Ch5 there Cas a sharp increase in the number of hara bees an8 occupational frau8 8uring the first election 5earB 3992 )refer to >aste8 E:pen8itures subsection in the 4acroeconomic &mpact *nal5sis of #ccupational +rau8 in 1en5a section, Lac; of 8istinction betCeen private an8 public 8uties of officialsD 4uton5i points out that the 'political s5stem inherite8 from the JBritishK colonial government fails to clarif5 the 8istinction private an8 public interests( ).,- 4oreoverB since *frican societies are also ver5 communit5 centere8B the public officials lea8ership position 'hinges ver5 largel5 o the e:tent to Chich one is able to satisf5 his or her oCn communit5( )4uton5i .,- %husB these officials come un8er pressure to provi8e favorsB emplo5ment an8 other economic benefits to their famil5B their local communit5 an8 finall5B ethnic lines Ethnic factionsD *s allu8e8 to in the 8iscussion of privateEpublic 8utiesB officials are highl5 pressure8 to give bac; to their famil5 an8 communities- 0ince ethnicit5 is a strong part of 1en5ans7 i8entitiesB 8istribution of resources has favore8 those affiliate8 Cith the ruling regime7s ethnic group- +or instanceB 8uring 4oi7s ruleB the best roa8s in 1en5a Cere consistentl5 in his constituenc5- *88itionall5B hiring in the public sector Cas not meritocraticIratherB nepotism an8 cron5ism Cere e:tremel5 prevalent- %his has lea8 to unprofessionalism an8 me8iocrit5 in the public sector )4uton5i .,-

%NTI,CORRU"TION E

ORT$ %ND -E%$URE$

*s establishe8 in the prece8ing sectionB occupational frau8 Cas nascent 8uring the earl5 5ears of 1en5a as an in8epen8ent nation- &t progressivel5 became Corse an8 it reache8 its clima: 8uring the 399 7s- *t that pointB several initiatives in the public an8 non6public sectors of 1en5a starte8 emerge8- %his section Cill e:plore the various efforts carrie8 out b5 these bo8ies-

!3

For)er Go1ern)ent2% Initiati1e%

*t the height of occupational frau8 in the 399 7sB the government Cas coming un8er more pressure to combat the groCth of occupational frau8- BeloC are some of the ;e5 initiatives an8 turning points for the government &n 3993B the 8onor communit5 )>orl8 Ban;B &4+B etc, an8 the pro68emocrac5 movement manage8 to pressure the government to remove the ban on political parties- %his enable8 the critics of the government to have a legitimate voice in parliament an8 start she88ing light on the Ca5Car8 Ca5s of the ruling government )4uton5i 9, %he >orl8 an8 &4+ facilitate8 the 0tructural *8justment Program )0*P, betCeen 399! an8 399<- &n this initiativeB 'price controls Cere abolishe8B import6licensing re=uirements remove8B total liberaliFation of the tra8e an8 foreign e:change establishe8 an8 man5 public6run corporations Cere privatiFe8( in or8er to re8uce opportunities for occupational frau8 )4uton5i 9, 1en5a *nti6Corruption *genc5 )1*C*,D %his agenc5 Cas forme8 in December 3997 )just Cee;s before the secon8 multipart5 elections,- Presi8ent 4oi appointe8 a former police inspector an8 the rest of the agenc5 Cas from members of the 1en5a Police- )B5 noCB this shoul8 alarm 5ou since 5ou saC the results of the %&61en5a7s $rban Briber5 in8e:B Chich foun8 that the 1en5a Police Cas the most corrupt institution in 1en5aP,- *s suchB the 1*C* ha8 a floun8ering start an8 Cas 8isban8e8- &t Cas then reinstate8 in November 3999 Cith a Tu8ge of the /igh Court as the 8irector5 an8 highl5 s;ille8 au8itorsB laC5ersB engineersB economists an8 e:perience8 police offers- /oCeverB Chen it starte8 ma;ing soli8 progress )i-e- starte8 investing legitimate corruption allegations,B the 1*C* Cas convenientl5 8eclare8 unconstitutional because it 'clashe8 Cith the 1en5a ConstitutionB Chich states onl5 that the *ttorne5 General an8 the police coul8 prosecute criminals( )4uton5i 33,- Wuestions arose as Ch5 this obstacle Cas not foreseenB but Chat it reall5 !2

pointe8 to Cas that 4oi7s regime Cas not sincerel5 motivate8 to combat occupational frau8-

Initiati1e% o& Ci1i Societie% an! NGO2%

Civil societies an8 NG#7sB both local an8 internationalB have ha8 an influence in fight against occupational frau8- >hile the local me8ia has enjo5e8 much more free8om of speech since 1en5a entere8 the multipart5 politics eraB the me8ia alone cannot amass the resources nee8e8 to she8 light on the e:tent of corruption in 1en5a- %he civil societies have pla5e8 a critical role in this respect+or instanceB civil societies such as %ransparenc5 &nternational6 1en5a )%&61en5a,B Centre for Governance an8 Development )CGD,B an8 Centre for LaC "esearch &nternational )CL*"&#N have 'provi8e8 the intellectual lea8ership( b5 a anal5Fing the impact of occupational frau8 on public finances )httpDEECCC-ti;en5a-orgE8ocumentsE*8iliTul52!-p8fB pg- <,- %he prece8ing sections in this paper that cover both micro an8 macroeconomic effects of occupational frau8 in this paper rel5 heavil5 on the research con8ucte8 b5 these societies-

Pri1ate Sector Initiati1e%

>hile the private sector clearl5 ac;noCle8ge8 the crippling affects of occupational frau8 in con8ucting businessB the5 felt as a Chole that the efforts in era8icating it shoul8 be the responsibilit5 of the public sector- 0ome speculate that the private sector Cas too intimi8ate8 in confronting the government about occupational frau8 because it often implicate8 high6ran;e8 public officials )httpDEECCC-ti;en5a-orgE8ocumentsE*8iliTul52!-p8fB 3,- NonethelessB the private sector has recogniFe8 that a portion of the occupational frau8 occurs Cithin enterprises- BeloC are some initiatives that have been launche8D 1en5a Private 0ector +oun8ation )1P0+,D %he mission of this bo85 is to craft an8 implement changes in management strategies that Coul8 encourage the 8evelopment of !!

private enterprises in 1en5a an8 form effective partnerships Cith the government concerning economic polic5 8rafting an8 implementation- %he +oun8ation believes that it shoul8 Cor; 'Cith the government to buil8 a soun8 polic5B regulator5 an8 institutional frameCor; supportive of increase8 pro8uctive investment an8 private sector le8 groCth( )CL*"&#NB 3!9, %he Private 0ector Corporate Governance %rust )P0CG%,D P0CG% Cas forme8 in 3999 to lea8 initiatives in establishing goo8 corporate governance- &t is a non6government bo85B non6profit trust foun8e8 b5 the private sector- 0ome of the ;e5 objectives of the %rust areD o %o 'promoteB stimulateB a8vocate an8 co6or8inate the 8evelopmentB articulation an8 implementation of goo8 corporate governance principles an8 practices in 1en5a an8 the East *frican "egion an8 to 8o all such other things as pertinent or relevant thereto-( )CL*"&#NB 3!<,o %o Establish a center for sustaining this %rust an8 serve as a resource for the private sector communit5- )CL*"&#NB 3!?,o %o collaborate Cith other organiFationsB bo8iesB etc- that have similar goals an8 objectives )CL*"&#NB 3!?,o +inall5B to e8ucate an8 bring public attention to the importance of goo8 corporate governance- )CL*"&#NB 3!?,-

E&&ort% an! Initiati1e% o& t$e ne3 NARC #o1ern)ent

&t has been a 5ear since the euphoric moments that ushere8 in the neC N*"C )National "ainboC Coalition, government in Tanuar5 2 !- >ith the e:citement that reverberate8 aroun8 the countr5B

there have been man5 e:pectations place8 on this neC a8ministration- %his section Cill loo; at hoC the neC government has been on fulfilling its campaign promise to 'call upon all those members of JthisK government an8 public officers accustome8 to corrupt practice to ;noC an8 !9

clearl5 un8erstan8 that there Cill be no sacre8 coCs un8er m5 government( )httpDEECCC-statehouse;en5a-go-;eEspeechesE;iba;iE2 2! 32 3-htm, !B *8ili

&n their special issue for the 1en5a National *nti6Corruption ConferenceB Tul5 2!B 2

)Chich means integrit5 in 0Cahili,B a neCs service from %ransparenc5 &nternationalA 1en5aB ha8 several articles that highlighte8 some of the accomplishments of the neC government an8 liste8 some issues upon Chich N*"C coul8 improve )httpDEECCC-ti;en5a-orgE8ocumentsE*8iliTul52!-p8fB 963 ,N*"C *nti6Corruption *chievements %he +inance 4inister loc;e8 some con8uits for frau8 b5 sealing crac;s that facilitate8 the floC of corrupt cashB in procurementB revenue collectionB privatiFationB price controls an8 business regulations 0uspension of 2B procurement officers

0topping irregular 8isposal of public lan8 an8 utilities 0topping irregular ten8ering in roa8s an8 public Cor;sB an8 the JfiringK of Chat the 4inister of "oa8sB /ousing an8 Public >or;s calls 'coCbo5( contractorsB the ministr5 engineers Cho use8 their oCn private companies to e:ploit the government-

%he seiFing of the management of some public utilities that ha8 been ta;en over b5 the previous regime- %hese inclu8e the 1en5atta &nternational Conference Centre )1&CC, an8 1en5a Cooperative Creameries )1CC,

Passing of the Corruption an8 Economics Crimes Bill an8 the Public #fficers Ethics BillB creates an in8epen8ent anticorruption commission an8 creates legal mechanisms for prosecuting corruption an8 recovering the procee8s of economic crimes- %he Public #fficers Ethics Bill imposes co8es of con8uct for government officials an8 emplo5ees an8 re=uires all public officials an8 emplo5ees to file annual 8eclarations of their finances-

!<

+ormation of tas; forces to investigate corruption in 8ifferent sectors an8 ministriesDismissal of a 8oFen ju8ges accuse8 of occupational frau8-

Criticisms on N*"C7s progress on *nti6Corruption 0ome members of the oppositionB members of this coalition government an8 civil societies have ma8e some criticisms about the government7s progress- BeloC are some of these criticisms cite8 in *8ili7s special issue for 1en5a7s National *nti6Corruption ConferenceB Tul5 2!B 2 ! )3 ,-

0ome of the public officials in this neC government are from the ol8 regime )the5 sCitche8 parties before the elections,- 1en5ans are s;eptical that just can be serve8 if the5 are still in the e:ample- *n e:ample is the former vice6presi8ent in the 4oi government )Prof- George 0aitoti, is noC the 4ister of E8ucation-

1*N$7s )the part5 8efeate8 in the last elections, lea8ers claim that little has been achieve8D 'the original heat mounte8 against the corrupt b5 the N*"C ministers Chen the5 too; over poCer from 1*N$ in Tanuar5B has =uic;l5 coole8 offB as the ministers began to poc;et huge bribes from the corrupt- *n8 8espite huge cacophon5 against the corrupt since Tanuar5B not a single corrupt man has been jaile8-( 0ome members of the N*"C part5 have echoe8 some of these sentiments-

* chun; of forestlan8 is still in private han8s- *ssistant 4inister for Environment an8 Natural "esourcesB Cho once threatene8 to go to court to have forest e:cision or8ers revo;e8B is 'conspicuousl5 =uiet( since her appointment-

Not all pla5ers in the infamous Euro Ban; affair are in court- Government critics claim there appears to be selective prosecution-

Not much has been 8one to e:plain hoC far the government has gone in recovering loote8 public resources an8 fun8s- "eports b5 the Public &nvestment CommitteeB Public *ccounts !?

CommitteeB *u8itor General an8 the Parliamentar5 0elect Committee on Corruption reveale8 names an8 figures of the e:tent of frau8B 5et the N*"C government has faile8 to use them as gui8elines to pursue Crong8oers-

CONC&U$ION$
%his upcoming December 32B 2 !B 1en5a Cill be celebrating fort5 5ears of in8epen8ence- 0ome of the initiatives this neC government has implemente8 have begun to chip aCa5 at the 8eep6 seate8 corruption that 1en5a has e:perience8 over the last four- NonethelessB there is much more Cor; ahea8 of us- Tohn GithongoB a former 8irector of %ransparenc5 &nternational61en5a Cho Cas appointe8 as 'Permanent 0ecretar5 in the #ffice of the Presi8ent in charge of Governance an8 Ethics( cautions 'Chenever 5ou have a major transition an8 especiall5 Chen the incumbent Cho is leaving poCer has been in poCer for a long perio8 of time XChen that lea8ers goesB 5ou have a Cin8oC of opportunit5 that lasts about 29 months( )httpDEEallafrica-comEstoriesEprintableE2 ! 3 3 !!-html,- Githongo is referring to this Cin8oC of

tCent56four months because the corruption netCor;s Cill attempt to re6organiFe themselves if the neC government 8oes not ma;e significant efforts- %o ma;e the most of this 265ear Cin8oCB Githongo urges that the civil societiesB the 1en5an me8ia an8 the citiFens themselves shoul8 continue to appl5 pressure on the government- /e claims that 1en5a is a goo8 position to 8o this at present since 1en5a has a 'fairl5 strong civil societ5 an8 ver5B ver5 goo8 me8ia --Jan8K a private sector that is getting more an8 more unhapp5 about corruption(&n regar8s to Githongo7s tCent56four month Cin8oCB the N*"C government is behin8 sche8ule- Because the N*"C government is a coalition government of several partiesB there has been a fair amount of s=uabbling that flare8 up Cithin tCo months of being electe8 )httpDEECCC-nationau8io-comENeCsEDail5NationE39 !2 !ENeCsE0potlight3-html,- %his intra6

coalition conflict has been Cearisome an8 8etracting N*"C from e:pen8ing more of its efforts its !7

primar5 objectiveB one being anti6corruption- %he realit5 of the matter is that politicians are politicians an8 the culture of he8onistic pursuits in 1en5an politics is not going to change overnight- 45 hope is that the me8ia an8 the civil societies Cill ;eep clamoring to N*"C an8 remin8 it Chat its primar5 objectives are#ne a positive noteB there has been an encouraging tren8 in lea8ership- "ecentl5B some neC lea8ers are starting to emerge in *frica that man5 hope that Cill be part of the solution in revitaliFing the continent- &n their article on '*fricaOs neC class of poCer pla5ers(B the Christian 0cience 4onitor highlights hoC $huru 1en5atta7s concession speechB after he Cas 8efeate8 in the 1en5an presi8ential elections last 5ear b5 4Cai 1iba;iB Cas 'revolutionar5 for *frica( )httpDEECCC-csmonitor-comE2 !E 9! Ep 3s !6Coaf-html,- 4an5 )1en5ans an8 the international

communit5, Cere e:pecting the outcome of the elections to be marre8 b5 violenceB but '1en5attaOs grace in 8efeat caught ever5one b5 surprise an8 helpe8 8efuse the situation-( %he C04 continues b5 stating that it Cas a significant moment not onl5 in 1en5a7s histor5B but also across *frica as it mar;e8 a 'neC maturit5 in *frican lea8ership(- %his strong lea8ershipB couple8 Cith a proactive citiFenr5B is one of the ;e5 ingre8ients that 1en5a an8 other *frican countries Cill nee8 to climb bac; on the horse of soun8 governance an8 prosperit5-

!.

/OR'$ CITED
22( website- 'Tu8ges suspen8e8 b5 presi8ent 8ue to corruption(- #ctober 37B 2 !December !B 2 ! YhttpDEEneCs-bbc-co-u;E2EhiEafricaE!397..2-stmZ 2usiness in Africa Online& '/oC corrupt is *fricaH(- Date of publication un;noCn- 4arch 2!B 2 ! YhttpDEECCC-businessinafrica-co-FaEDecemberEcorruption-htmZ Carson- 'Corruption &s Costing 1en5a Dearl5(- December 2 B 2 2- +aily 3ationDecember !B 2 ! Y httpDEECCC-globalpolic5-orgEnationsEcorruptEgovernmtE2 2E322 ;en5a-htmZ (hristian *cience 4onitor- '*fricaOs neC class of poCer pla5ers(- 0eptember ! B 2 !December !B 2 !- YhttpDEECCC-csmonitor-comE2 !E 9! Ep 3s !6Coaf-htmlZ (IA 'orld 5act 2oo6-!enya- Date of publication un;noCn- December !B 2 ! YhttpDEECCC-cia-govEciaEpublicationsEfactboo;EgeosE;e-htmlZ +ictionary&co website& 7Definition of Chite elephant(- Date of publication un;noCnDecember !B 2 ! YhttpDEE8ictionar5-reference-comEsearchH=LChiteM2 elephantZ 8adonet&co - 'Corruption Cartoon(- Date of publication un;noCn- December !B 2 ! YhttpDEECCC-ga8onet-comE Z Gaitho, Macharia. &ntrigues behin8 the s=uabbling that threatens ruling coalition(- +aily 3ation& +ri8a5B 4arch 39B 2 !- December <B 2 ! YhttpDEECCC-nationau8io-comENeCsEDail5NationE39 !2 !ENeCsE0potlight3-htmlZ 1aranjaB >illiam- '1en5aD Corruption 0can8al(- 'orld 9ress Re"iew& #ctober 2 !December !B 2 ! YhttpDEECCC-Corl8press-orgE*fricaE3999-cfmZ 1ibCanaB 1ivuthaB 0- 1ichamu *;ivagaB LaCrence 4uruguB 4orris #8hiambo'&nitiatives against Corruption in 1en5a Legal an8 Polic5 &nterventionsB 399<62 3((:ARIO3 website& Date of publication un;noCn- December !B 2 YhttpDEECCC-clarion;en5a-orgE8ocumentsEinitiatives-p8fZ 4uton5iB Tohn P- '+ighting CorruptionD &s 1en5a on the right trac;H(- ;ni"ersity of *outh Australia website& Date of Publication $n;noCn- December !B 2 !YhttpDEECCC-unisanet-unisa-e8u-auE0taffPagesE"ic;0arreEPolan8M2 papersE4uton5i-p8fZ #chiengB Tohn an8 Tohn #5Ca- 'Drive Begins to "evive 1isumu 4olasses Plant(- All Africa- November !B 2 !- December !B 2 ! YhttpDEEallafrica-comEstoriesE2 !33 ! ?27-htmlZ Wuist6*rcton B #feibea- '1iba;i /as %Co62ear >in8oC %o %ac;le 1en5aOs Corruption *n8 Deliver #n PromisesB 0a5s *nal5st( allAfrica&co Cebsite- Tanuar5 3B 2 !December !B 2 ! YhttpDEEallafrica-comEstoriesEprintableE2 ! 3 3 !!-htmlZ "e8fernB Paul- '>orl8 Ban; to bac; aCa5 from big 8ams(- November 2!B 2 !- +aily 3ation& December !B 2 ! httpDEECCC-nationau8io-comENeCsEDail5NationE2!332 E+eaturesE+eatures<-html 0Flapa; B *itan- '>ill Corruption Ever 0top Developing in 1en5aH(- <ransparency International-!enya website& Tanuar5 2 2- December !B 2 ! YhttpDEECCC-ti;en5a-orgE8ocumentsE8issertation-8ocZ <ransparency International-!enya 'ebsite- 'Corruption in 1en5aD +in8ings of an urban briber5 surver5(- Date of publication un;noCn- December !B 2 ! YhttpDEECCC-ti;en5a-orgE8ocumentsEurbanQbriber5Qin8e:-8ocZ6666B '*8ili 0pecial &ssue for the 1en5a National *nti6Corruption Conference(- Tul5 2!B 2 !- December !B 2 !- YhttpDEECCC-ti;en5a-orgE8ocumentsE*8iliTul52!-p8fZ !9

6666B 'Corruption loCering e8ucational stan8ar8s in 1en5a(- Tune 37B 2 3- December !B 2 !- YhttpDEECCC-ti;en5a-orgE8ocumentsEa8hili%>EL@E-p8fZ 66666B '*frican Parliamentarian netCor; against CorruptionD /ur8les an8 0uccesses in 1en5an(- Tune 2!B 2 !- December !B 2 ! YhttpDEECCC-ti;en5a-orgE8ocumentsE*8iliTul52!-p8fZ !enya 8o"ern ent website- 'Presi8ent 1iba;i7s 0peech to the Nation on his &nauguration as 1en5a7s !r8 Presi8ent-( December ! B 2 2- December !B 2 !YhttpDEECCC-statehouse;en5a-go-;eEspeechesE;iba;iE2 2! 32 3-htmZ >ahomeB 4una- '1en5a ran;e8 fourth in graft(- %hurs8a5B Tune 2.B 2 3- +aily 3ation website& December !B 2 ! YhttpDEECCC-nationau8io-comENeCsEDail5NationE2. ?2 3ENeCsENeCs<.-htmlZ