CORRUPTION IN KENYA

EFFECTS  OF CORRUPTION IN KENYA 

Corruption is an endemic problem in Kenya. In fact, it has risen to catastrophic levels such that even after the promulgation of a new constitution and the enactment of specific laws on corruption, the problem is still rampant. Unfortunately, this is to the detriment of the economy and social sectors just to mention a few. Corruption hinders the achievement of goals and useful visions such as the ambitious vision 2030. Unfortunately, the vice of corruption exists on different levels with varied impacts. Maybe by understanding the effects of corruption, people can finally take a step to end it. 

While corruption is a global problem that is present in all countries, there is enough evidence showing that poor people are affected the most. Therefore, the government could be having great plans on improving the lives of its people, but due to corruption at different stages of implementations, these plans never see the light of day. This explains how development projects in rural areas have remained stagnant for years after their inception. A closer look at the different development crippling as a result of corruption could shed more light on this issue. Here are some of the effects of corruption.

High prices for consumers.

Business people have to pay back that which they lost through corruption and bribery. They view the bribe they pay to access permits as a cost of business hence the consumers have to cater for it.

Less investment as the cost of doing business is very high due to corruption. This leads to fewer goods hitting the market and highly inflated prices. When investors view corruption as a form of tax, their incentive to invest is lowered significantly.

Donor agencies relax their commitment to funding economic projects due to corruption. 

Reduced foreign direct investments since the foreign firms view corruption as a cost of doing business, which sometimes becomes too high and unpredictable thus unattractive. 

Minimizes tax revenue as corruption fosters tax evasions. Deficit financing since the government’s ability to collect revenue is hindered hence crippling its ability to finance crucial budget expenses.

Inferior public infrastructure which hinders the good flow of business as systems are broken down with substandard materials being used for public amenities. 

The uncertainty of economic transactions. People fear to commit to future investment as they are not sure how things will turn out to.