US Flags Kenya Over Bribes, Extortion in Public Tenders
A recent report from the Office of the United States Trade Representative has highlighted the challenges faced by American companies in securing profitable government contracts in Kenya.
According to the report, U.S. corporations identified collaboration between Kenyan government officials and foreign companies as a major obstacle to their investment endeavors in the country.
It was elucidated that the majority of government contracts are secured through connections with government officials, often involving requests for bribes during the procurement process.
In contrast to foreign enterprises, American corporations have stated that they typically steer clear of situations where bribes are requested, a decision that often leads to conflicts with individuals who hold sway over the tender processes.
“US firms have had very limited success bidding on Kenyan Government tenders, and corruption remains a significant concern. Many of these tenders are challenged in the courts. Foreign firms, some without proven track records, have won government contracts when partnered with well-connected Kenyan firms or individuals.
“US companies have expressed concerns about IFMIS due to insufficient connectivity and technical capacity in county government offices, apathy from county government officials, central control shutdowns, and security gaps that render the system vulnerable to manipulation and hacking,” read the report in part.
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However, the companies also mentioned that they sometimes face legal challenges in court after securing government contracts.
In the halls of the legal system, it was revealed that companies are required to offer bribes along with enduring protracted court procedures.
“US firms continue to report challenges competing against foreign firms that are willing to ignore legal standards or engage in bribery and other forms of corruption. Corruption is widely reported to affect government procurements at the national and county levels.
“Kenya has not effectively implemented its anti-corruption laws. US firms routinely report direct requests for bribes from all levels of the Kenyan Government. Despite efforts to increase efficiency and public confidence in the judiciary, the backlog of cases and continued corruption undermine the judicial system’s credibility and effectiveness,” the report read in part.
However, it was highlighted that Judicial reforms were underway
The goal of the report from the US Trade Office is to examine obstacles encountered by American investors worldwide.
US Flags Kenya Over Bribes, Extortion in Public Tenders