ONDITI: Collective action for business integrity

Ms. Diane Onditi (MPRSK), Communications & PR Specialist/HANDOUT

Corruption is no longer an abstract governance problem. It is a daily business risk, an economic tax, and a direct threat to Kenya’s competitiveness. From inflated procurement costs to informal payments demanded to access basic services, bribery distorts markets and punishes honest enterprises.

If Kenya is serious about economic recovery, job creation, and investor confidence, collective action on business integrity must move from rhetoric to reality.

Recent evidence is sobering. Research presented at the Africa Business Ethics Conference (ABEC) shows that six out of ten Kenyans believe corruption is increasing.

Kenya’s score of 32 on the 2024 Transparency International Corruption Perceptions Index places the country below the Sub-Saharan Africa average, reflecting weak trust in integrity systems. More alarming is the economic cost: corruption is estimated to drain about 7.8 percent of GDP. This loss exceeds the contribution of some productive sectors and diverts resources from healthcare, education, and enterprise development.

Bribery is often defended as a necessary shortcut small payments to speed up processes or avoid harassment. In reality, these “small” bribes accumulate into an unofficial tax on businesses and citizens.

Public procurement, which accounts for roughly 16 percent of GDP, remains a particularly high-risk area. When corruption infiltrates procurement, taxpayers pay more, quality declines, and legitimate firms especially SMEs are pushed out of the market.

It is convenient to frame corruption as a public sector problem. Yet corruption survives because of shared responsibility. While public officials may solicit bribes, private actors often supply them to secure tenders, gain competitive advantage, or navigate inefficient systems.

Evidence shows unethical practices are increasingly occurring at operational and middle-management levels, exploiting weak internal controls rather than boardroom decisions alone. Addressing corruption therefore requires confronting uncomfortable truths on both sides of the transaction.

Kenya does not lack laws. The Bribery Act of 2016 and related frameworks provide a solid legal foundation. The real deficit lies in implementation, enforcement, and collective accountability. Anti-corruption efforts that target only public institutions while ignoring private sector conduct leave the system half-reformed and easily subverted.

This is where collective action becomes indispensable. When businesses act individually, refusing to pay bribes can be costly and risky. When they act together, the incentives change.

Collective action reduces pressure on individual firms, removes the perceived advantage of corruption, and lowers compliance costs through shared standards and tools. Industry associations that enforce codes of ethics, screen members, and sanction unethical conduct demonstrate that peer accountability works.

For government, collective engagement with the private sector strengthens transparency and credibility. Digital procurement systems, open contracting, and predictable enforcement reduce discretion and opportunity for abuse. Whistleblower protection and trusted reporting channels further raise the cost of corruption while protecting those who choose integrity.

The choice facing Kenya is clear. Integrity is not a moral luxury; it is an economic necessity. The cost of inaction lost investment, weakened competitiveness, and eroded trust is far higher than the cost of reform. Collective action by the public and private sectors is the only credible path to reducing bribery and restoring confidence in the market.

If success in Kenya is to be determined by merit rather than manipulation, collective action on business integrity must begin now and it must be sustained.