The government has signed a memorandum of understanding (MoU) with the British Chamber of Commerce Kenya (BCCK) to promote business climate reforms, including the fight against corruption.
BCCK’s Business Integrity Initiative and the Department of Business Reforms and Transformation (DBRT) under the Ministry of East African Community (EAC) and Regional Development will establish a joint programme to identify and recommend areas for reform, host public-private workshops, and build private sector capacity.
Speaking during the signing of the MoU, Principal Secretary in the State Department for EAC Kevit Desai said 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. This MoU will create a platform to reaffirm Kenya’s commitment to strengthening the business climate," he said.
"It will also build private sector participation in the digitisation and automation of government services in procurement, revenue collection and cross-border trade.”
The MoU will address some of the findings from a recent BCCK Business Integrity Market Survey, which measures the impact of corruption in the private sector and recommends areas for reform.
The survey found that 66 per cent of the respondent companies in Kenya experience negative impacts on their business from corruption. Of these, 37 per cent reported financial impacts through loss of annual earnings or future investment.
Annual losses of earnings relating to integrity lapses were valued at 23 per cent, while losses of future investment were at 20 per cent.