Corruption: Time country took permanent and decisive action

All our good intentions on economic and social development amount to nothing if every step in the right direction is dealt a resounding blow by corruption. With the country still reeling from a prolonged and polarising election, the looting in critical facets of development only further deepens existing divides and exacerbates poverty levels.

For businesses, the single-most consistent deterrent to investors is the increasing cost of doing business, a huge amount of which is attributed to fraud and malfeasance.

The manufacturing sector’s performance has been on a downward trajectory over the past few years, owing to, among others, high cost of energy, influx of substandard imports and counterfeits, non-tariff barriers and multiple levies and charges, especially at county levels.

GOVERNANCE

Through loopholes in execution of policies and regulations, corruption has found a way to keep these impediments consistent, hampering diffusion of industries around the country. 

The multiplier effect has been huge losses to businesses as the cost burdens keep them unproductive and unprofitable. Consequently, investors become more skeptical and cease from expanding locally as others shift to more lucrative markets with stronger governance structures and institutions.

In addition to the high capital outlay required to start businesses, rent seeking — which has become a culture — has significantly lengthened the time it takes new investors to settle in, let alone break even. This has affected the ability of industry to provide productive employment; no wonder Kenya has the highest unemployment rate in the EAC, at 39.1 per cent.

Counterfeits continue to enter the local market, their networks more sophisticated and elusive, with the assistance and protection of officials.

UNEMPLOYED

The larger problem with counterfeits is that they put at risk the health and well-being of citizens — gas cylinders that explode in homes, expired and unsafe medication and contaminated goods. Subsequently, we have a large portion of the population that is unwell and unemployed, which affects productivity and alienates them from active civic processes.

The government’s ‘Big Four’ agenda identifies four critical pillars of sustainable economic development. However, only a few months into its implementation, each one of the key pillars is plagued by corruption or bears a strong whiff of graft.

The mega corruption revealed at Kenya Power raises serious concerns for the manufacturing sector, which has consistently lamented costly and unreliable electricity. The NCPB maize scandal sets back the food security pillar, highlighting substantial gaps in the food sector. Health and housing have been saddled with graft and embezzlement for the past two years.

PORALISING

Just last month, the auditor-general confirmed the theft of Sh5 billion from Afya House from 2016 and Cotu released a report alleging irregularities in the approval of projects worth more than Sh13 billion. These are just a drop in the ocean. 

Even policies designed to inculcate and institutionalise inclusion have been pervaded by corrupt practices. The 40 per cent local content requirement and 30 per cent procurement set aside for women, youth and the disabled (AGPO) are frequently rife with allegations of nepotism and cronyism that dilute the goal and lock out the targeted marginalised populace. 

Overall, each cycle of breaking news is more disheartening than the last. If we are true to our endeavour to rebuild our country and bring about equality, it is time to take quick, decisive and discernible actions. It is no longer enough to identify the rot; we must root it out by strengthening the institutions rendered vitreous by polarising politics.

Ms Wakiaga is the CEO, Kenya Association of Manufacturers, and the UN Global Compact Network Representative for Kenya. [email protected]