Kenya corruption costs $2.8bn a year, World Bank says

The World Bank said in a report published Wednesday that corruption is costing Kenya billions of dollars a year through lost revenue, higher business costs, lower worker earnings and weaker investment.

The bank estimated that governance weaknesses add about 370 billion shillings, or $2.8 billion, every year to Kenya's fiscal deficit. It said that was equal to about two percent of GDP and described the figure as conservative.

The estimate includes lost taxes, inefficient public spending, higher borrowing costs and other costs linked to corruption. The World Bank said graft affects Kenya from petty bribes to major procurement scandals.

The report said reforms similar to those seen in Ghana and Senegal could make Kenya's economy much larger by 2035 and add 7.7 million more and better jobs. Verena Fritz, the World Bank's lead governance expert for Kenya, said Kenya had many of the ingredients needed to become a leading country in the region.

The World Bank approved its latest lending package to Kenya in June after it had been stalled during 2025 over anti-corruption measures. The bank has pushed for new rules on politicians' conflicts of interest, an electronic procurement system and a long-delayed whistleblower protection bill.

The report also said only 24 percent of 42 power purchase agreements examined in a 2021 study were known to have gone through a competitive process. It said cleaning up 10 percent of procurement losses could save Kenya 120 billion shillings, or $930 million, a year.

A World Bank survey found that 39 percent of Kenyan firms considered corruption a major or severe constraint to doing business in 2025, up from 25 percent in 2013. It said 36 percent of firms reported being asked for a bribe at least once in the past year.