Kenya: World Bank warns of the cost of corruption

Corruption costs Kenya billions of dollars each year in lost tax revenue, higher business costs and reduced worker incomes, harming investment and growth, according to a World Bank report. It ranges from routine bribes paid to police officers to public procurement scandals reaching the highest levels of government, and has contributed to mass protests over the past two years. The report ranks Kenya among the most corrupt lower-middle-income countries and estimates that governance weaknesses add about 370 billion shillings, or $2.8 billion, to the annual budget deficit—equivalent to 2% of GDP. The conservative estimate reflects lost tax revenue, inefficient public spending and higher borrowing costs.