KAM to refund Sh4 million Danish grant amid graft claims

The Kenya Association of Manufacturers (KAM) head office in Westlands, Nairobi. [Jenipher Wachie, Standard] The Kenya Association of Manufacturers (KAM) says it will refund Sh3.9 million to the Danish government following revelations of financial impropriety at the influential lobby. The Standard exclusively reported on Monday that Denmark has suspended direct aid to KAM over concerns of corruption at the lobby. The Danish government earlier said it would no longer support KAM after irregularities were established in relation to a multi-million-shilling Denmark-backed project being implemented by KAM. And in a joint statement on Tuesday, KAM and the Danish government promised to resume the partnership once there is a "clean-up" at the manufacturers' lobby. "Reference is made to an article published on Monday, 19th June 2023 by The Standard newspaper, regarding the Kenya Association of Manufacturers (KAM) and Confederation of Danish Industry (DI) 2020 and 2021 project irregularities," said KAM. "During the review of the 2020 and 2021 project audits, a discovery was made of falsified expenditures of the DI-funded project by a former staff member. Consequently, a forensic audit was initiated by KAM, and action was taken on the audit findings." KAM said it had consequently undertaken "necessary corrective actions to further tighten internal controls to prevent such an occurrence." "In addition, DI appointed an independent auditor to review KAM's forensic audit and provide necessary findings for further action," said the lobby. "We would like to confirm that we reviewed the audit reports and their findings and took thenecessary administrative actions relating to KAM's financial procedures and processes." The Danish Ministry of Foreign Affairs said it had supported KAM through its own lobby Danish Industry to the tune of Sh39.1 million (DKK 1,900,748) through 2020-2021.The Confederation of Danish Industry, or DI, is Denmark's largest business and employers' organisation. DI's members are 18,000 private enterprises in the manufacturing and services industry, from virtually all sub-sectors. KAM is one of the most influential business lobbies in the country and draws support from leading businesses across various sectors of the economy. Kenya Association of Manufacturers Chairman Rajan Shah during the Manufacturing SMEs Convention on Strengthening. [David Gichuru, Standard] "We are the representative body of manufacturing and value-add industries in Kenya," says KAM on its website. "Established in 1959, we have evolved into a dynamic, vibrant, credible and respected business association that unites industrialists and offers a common voice for businesses." KAM says on its website it received Sh104.3 million last year in grant income from unnamed donors. This was less Sh3 million than the Sh107.4 million received a year earlier (2021) from the unnamed donors, it says on the website. The lobby lists its key roles, including representing member interests to influence government on policy and legislation such as tax regime and budget process as well as networking and market linkages. "In addition to increasing its membership base, KAM's other sustainability strategy has been to maintain current donor partners while seeking engagement with new ones to support projects that benefit our members, through funding," it says on its website. "This is achieved through the promotion of trade and investment, upholding standards, encouraging the formulation, enactment and administration of sound policies that facilitate a competitive business environment."

KAM to refund Sh4 million Danish grant amid graft claims

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KAM to refund Sh4 million Danish grant amid graft claims

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