Close Menu
  • Briefing
    • Cover Story
    • Latest News
    • Counties
  • Politics
    • Society
  • Special Reports
    • Companies
    • Enterprise
    • Money
    • Technology
  • Columns
  • Dispatches from China
  • Member Content
    • Shop
  • Contact Us
    • About us
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram LinkedIn
Nairobi Business Monthly
Subscribe
  • Briefing
    • Cover Story
    • Latest News
    • Counties
  • Politics
    • Society
  • Special Reports
    • Companies
    • Enterprise
    • Money
    • Technology
  • Columns
  • Dispatches from China
  • Member Content
    • Shop
  • Contact Us
    • About us
Nairobi Business Monthly
Home»Columns»Tackle graft as a matter of urgency to sustain spending, boost the economy
Columns

Tackle graft as a matter of urgency to sustain spending, boost the economy

Victor AdarBy Victor Adar3rd October 2023Updated:3rd October 2023No Comments3 Mins Read
Facebook Twitter WhatsApp Telegram Email
Share
Facebook Twitter WhatsApp Telegram Email

Corrupt government officers, often fixated on procurement deal kickbacks, are responsible for lost public funds, stalled projects, meaningless investments, dysfunctional infrastructure, and even tax evasion.

The latest in the graft drama series is former Athi Water CEO Michael Thuita (who has so far resigned), who was accused of embezzling water project funds and suspended. The theatre that followed played out in the public gallery, as the cabinet secretary and her PS engaged in an open war for supremacy, based on who is closest to State House. 

The allegations levelled against the CEO demonstrate the current trend where senior government officials in cahoots with procurement officers award themselves or their cronies’ contracts and government tenders in return for hefty kickbacks. 

The Nairobi Law Monthly September Edition

Further, the open brawl between the CS and her PS calls into question the commitment of the government to truly defer direction and leadership of corruption deterrence to EACC.

The other major culprit and conduit of corruption in contemporary Kenya is the pending bills monster, in both the national government and counties. For example, a special task force commissioned by Kisii Governor Simba Arati to look into the authenticity of their Sh1.6 billion pending bills submitted a finding genuine claims amounted to only Sh235 million.

What this shows is that pending bills are highly inflated, and in certain cases, are granted for shadowy or non-existent performances. While these claims are mostly questionable, there are often genuine cases jumbled up with the state officials, but, in general, payment delays present obvious cash flow challenges to the genuine businesses. 

Moreover, the government has ramped up more than Sh130 billion in pending bills further affecting small businesses. This inefficiency presents a perfect opportunity for corruption as payment of these bills has to be hinged on kickbacks and bribes.

This state of affairs is further exacerbated by internal audit departments that are mostly in limp mode, or co-opted into the gravy train. A risk assessment evaluation recently conducted by the EACC showed that most counties and state agencies do not have functional internal audit units as stipulated in the public finance management act. This presents an opportunity for embezzlement of public funds especially where there are no asset registers. 

We must tackle graft as a matter of urgency. In his campaigns, President William Ruto severally said that his approach at dealing with graft was institutional rather than personal, and that he would fully empower the EACC and other agencies to deal with corruption decisively. This must happen as a matter of priority. We must end graft – or reduce it by a large percentage – to sustain spending, curtail debt and boost the economy. 

The Nairobi Law Monthly September Edition
Follow on Facebook Follow on X (Twitter) Follow on WhatsApp
Share. Facebook Twitter WhatsApp Telegram
Victor Adar
  • X (Twitter)
  • LinkedIn

Victor Adar holds a Diploma in Mass Communication, Print, from Technical University of Mombasa. He has worked before for Reuters, Go Places travel magazine and Aden Associates International. As one of the old hands at NBM, having joined the team in 2012, Victor is one of the most reliable writers in the editorial team. He writes more on enterprise, corporate affairs, HR and technology.

Related Posts

How to manage staff costs during tough times

24th December 2024

The power of life insurance and why it  is key to a stable financial future

12th August 2024

The reverse Midas touch of Government evident in leasing business

6th July 2024

Trends in leadership management: Expert

8th June 2024
Add A Comment

Comments are closed.

The Nairobi Law Monthly September Edition
Latest Posts

Fatal crash halts traffic on Nairobi-Mombasa Highway

30th May 2025

TIFA poll: Most Kenyans reject broad-based govt over cost of living concerns

29th May 2025

VAT shake-up in Finance Bill 2025 threatens businesses, economists warn

29th May 2025

AfDB sees Africa becoming the world’s second-fastest growing region

29th May 2025

DTB posts strong profit growth amid strategic shifts

29th May 2025
The Nairobi Law Monthly September Edition
Nairobi Business Monthly
Facebook X (Twitter) Instagram LinkedIn
  • About Us
  • Member Content
  • Download Magazine
  • Contact Us
  • Privacy policy
© 2025 NairobiBusinessMonthly. Designed by Okii

Type above and press Enter to search. Press Esc to cancel.