OPINION: Why Kenya's private sector must lead the anti-corruption charge

By Judy Njino

Corruption is not just a moral failure, it’s a trillion-dollar global crisis. According to the World Economic Forum (WEF), over 5% of global GDP is lost to corruption each year, with an estimated $1.5 trillion paid in bribes. The United Nations Conference on Trade and Development (UNCTAD) reports that Africa loses over $50 billion annually through illicit financial flows, draining resources from critical development priorities.

In Kenya, the story is no different. In the 2024 Corruption Perception Index (CPI) released by Transparency International, scored Kenya 32 out of 100, ranking 121st out of 180 countries. While this marks a marginal improvement from the previous year’s score of 31, it remains below both the global average of 43 and the Sub-Saharan African average of 33, signaling the ongoing struggle with public sector corruption.

Despite progress in strengthening institutions, corruption remains one of Kenya’s most pressing challenges, ranked fourth after the high cost of living, unemployment, and poverty, according to the 2023 National Ethics and Corruption Survey by the Ethics and Anti-corruption Commission (EACC).

And the consequences are visible. Corruption siphons billions from public coffers each year, resources that would otherwise be used to improve healthcare, education, infrastructure, and other essential services.

Why silence is not an option

When corruption goes unchallenged, the damage extends far beyond financial loss. For the private sector, silence is no longer an option, it’s a business risk. It erodes democratic institutions, fuels instability, distorts market competition, and weakens public trust.

Companies that turn a blind eye to corruption risk losing credibility, facing legal consequences, and ultimately jeopardizing their long-term success. Inaction is not neutral; it’s complicity.

Taking collective action: A business imperative

Tackling systemic corruption is not a solo mission. One company’s actions, while critical, are not enough to dismantle entrenched practices. The private sector must go beyond rhetoric and embrace collective action.

This means uniting to set ethical business standards, strengthen anti-bribery frameworks, and promote transparent procurement practices. The Tenth Principle of the UN Global Compact’s clearly calls on businesses to work against corruption in all its forms, including extortion and bribery.

Through collective action, businesses can create an accountability framework that helps transform governance. Collaborations between the private sector, civil society, and government, like those supported by the UN Global Compact Network Kenya and The Blue Company initiative, can lead to real, sustainable change.

Learning from Africa’s governance champions

We often treat corruption as immovable, but Rwanda, Seychelles, and Mauritius prove otherwise. These countries have shown that ethical governance is possible—even in the African context.

Seychelles, Rwanda, and Mauritius have shown that good governance is possible through strong institutions and private sector collaboration. Seychelles leads Africa with a CPI score of 72, thanks to a whole-of-society approach. Rwanda, ranked 43rd globally (score 57), has curbed corruption through digital reforms and accountability, with business playing a key role. Mauritius, scoring 51, combines legal strength with private-sector-led initiatives like integrity pledges, setting a benchmark for ethical business in Africa. If they have done it, why not Kenya?

Leading from the top: The role of business leadership

Fighting corruption demands principled leadership. Every boardroom decision contributes to Kenya’s governance landscape. The UN Global Compact’s CEO Agenda urges executives to move beyond compliance and embed integrity into the DNA of their organizations.

Kenya’s private sector is already making strides. The Code of Ethics for Business in Kenya, the Anti-Bribery Act of 2016, and Multi-Sectoral Forums have created frameworks for ethical conduct and accountability. These are powerful starting points. What is needed now is scale, consistency, and reinforcement through bold leadership.

CEOs and senior executives must:

• Strengthen anti-bribery frameworks and internal controls.
• Champion transparency across their value chains.
• Support whistleblower protection and ethical reporting channels.
• Engage in advocacy for fair, accountable governance.

By doing so, they not only protect their brands and bottom lines, they help shape a business environment where integrity is rewarded.

History shows us that transformation is possible. With courage, collaboration, and commitment, Kenya’s private sector can drive a national shift toward good governance. Ethical business is not just a nice to have it, it is a strategy for sustainable success.

We have the tools. We have the framework. We have examples. Now we need the will.

It is possible and it starts with us.

[The writer is the Executive Director at Global Compact Network Kenya]