Kenyan firms abet corruption – survey
Kenyan companies report higher cases of bribery and corruption than the rest of Africa, Western Europe and the globe, a new report by Ernst and Young indicates. The audit-firm, in its 12th annual global fraud survey, interviewed 1758 senior executives and staff in 43 countries globally including for the first time, 25 company and government executives in Kenya.
In the report, 76 per cent of Kenyan companies believe corruption is widespread in the country with 32 per cent being prepared to use entertainment to win or retain business. Another 18 per cent were willing to give personal gifts while eight per cent would give cash to retain business during an economic downturn.
Ernst and Young concludes in the report that pressure to meet revenue growth targets is undermining executives' commitment to compliance with policies and the law. “The majority of Kenyan executives interviewed feel that this kind of unethical behavior is in order to ensure their companies' survival,” Peter Kahi, a partner at Ernst and Young said. “The competitive landscape continues to be distorted by unethical conduct.”
Kahi will head the new Fraud Investigation and Dispute Services at Ernst and Young Kenya. The report however did show a higher commitment among Kenyans to combat corporate corruption with the processes in place to monitor anti-bribery compliance at par with those in the rest of the world. Kenyans supported by 84 per cent the need for increased regulatory supervision as compared to 69 per cent for the rest of the world.