British firms in Kenya blame corruption for low investments

British firms in Kenya have experienced negative impacts on their businesses as a result of graft, it has emerged.

A recent survey by the British Chamber of Commerce - Kenya (BCCK) found that 66 per cent of their companies in Kenya blamed corruption as an impediment in the country’s business environment.

The firms under their business lobby say they will back the private sector’s fight against corruption as part of the reforms they hope to achieve.

The survey also noted that 37 per cent of the firms report financial impacts through loss of annual earnings or future investments.

Speaking during the signing of the MoU between Kenya and the UK, Principal Secretary, State Department of East African Community (EAC) Dr. Kevit Desai, said that business integrity is the foundation of international trade.

“While corruption is a global issue, it is a concern that has been raised in our discussions with businesses and international investors,” he said.

“This MoU will create a platform to reaffirm Kenya’s commitment to strengthening the business climate. It will also build private sector participation in the digitization and automation of government services in procurement, revenue collection and cross-border trade.”

The MoU will address some of the findings from the recent survey by the British lobby, which measured the impact of corruption in the private sector.

Recommendations from the private sector included accelerating the digitization of government service delivery, more integrity content and programming in industry standards and professional development.

The UK’s High Commissioner to Kenya Jane Marriot said that improving business integrity ties both the UK-Kenya Strategic partnership and the building of a prosperous, safer and healthier Kenya.

“The lessons from anti-corruption efforts in the UK and globally show the importance of building coalitions across government and civil society," said Ms. Marriot.

The signing of the Memorandum of Understanding (MoU) between Kenya and the United Kingdom will promote Kenya’s business climate reforms agenda.

The MoU will help the government and BCCK to identify and recommend areas for reform in Kenya's business regulatory environment, host joint events for dialogue between the public and private sectors.

An estimated 150 British firms are currently in Kenya and bilateral trade between Kenya and the United Kingdom is worth Ksh.167 billion.