Kenya: Corruption in Kenya Taking Massive Toll On Economic Growth, Warns World Bank

What the report says

The World Bank says corruption is inflicting a heavy economic cost on Kenya, draining public revenue, raising business expenses and reducing workers’ earnings while weakening investment and growth. In a report published Wednesday and carried by Radio France Internationale via AllAfrica, the bank described Kenya as one of the more corrupt lower middle-income countries and said governance weaknesses are worsening the country’s fiscal position.

According to the report, the losses linked to corruption and poor governance amount to about 370 billion shillings, or roughly $2.4 billion, each year. The bank said that figure reflects missed taxes, inefficient spending, higher borrowing costs and other drag on the economy. It also argued that corruption affects everyday life, from petty bribes to larger procurement scandals, and has helped fuel public anger and recent protests.

The World Bank said Kenya’s leadership has been slow to advance anti-corruption reforms, a point reflected in delays to its lending package, which was approved only in June after being held up during 2025. The bank has pushed for rules on conflicts of interest, an electronic procurement system and a whistleblower protection law.

The report also warned that corruption is making power and infrastructure more expensive than they should be and discouraging firms from doing business. The bank’s modelling suggests that reforms similar to those seen in some other African countries could significantly boost Kenya’s economy and job creation over time.