Kenya is losing a staggering Ksh 3 billion every single day to corruption, the Kenya Association of Manufacturers (KAM) has revealed, painting a grim picture of the systemic graft eating away at the country’s economy.
The manufacturers’ body raised the alarm on Wednesday, warning that corruption remains the single biggest barrier to doing business in Kenya. The losses translate to over Ksh 1 trillion annually — money that could build roads, hospitals, and schools across the country.
What KAM Is Saying
KAM leadership told a media briefing that manufacturers face corruption at nearly every touchpoint — from licensing and customs clearance to county-level permits and tax administration. The association called on the government to take decisive action rather than paying lip service to anti-graft efforts.
“The cost of corruption is ultimately borne by the mwananchi,” a KAM representative said. “When manufacturers pay bribes to get things done, that cost is passed on to consumers through higher prices.”
Where the Money Goes
The Ksh 3 billion daily figure covers procurement fraud, tax evasion, inflated contracts, and outright theft of public funds. Kenya has consistently ranked poorly on global corruption indices, with Transparency International’s latest report placing the country among the most corrupt in East Africa.
Recent high-profile scandals — from the NYS saga to the KEMSA heist — have shown that corruption penetrates both national and county government levels. Despite promises from successive administrations, prosecutions remain slow and convictions rare.
Impact on Economy and Jobs
Manufacturers warn that the corruption tax is driving investors away. Several multinational firms have either scaled down operations or pulled out of Kenya entirely, citing an unfavourable business environment. With youth unemployment hovering above 40%, the country can ill afford to lose potential job creators.
KAM has proposed a raft of measures including digitising all government services to reduce human contact, strengthening whistleblower protections, and fast-tracking corruption cases through the courts.
The ball is now in the government’s court. Whether this latest alarm bell prompts real action — or joins the long list of ignored warnings — remains to be seen.
