Import, export sub-sector most vulnerable to corruption: report

Politics and policy

Cargo at the Mombasa port. A new KEPSA report singled out the import and export sub-sector as the most likely point of interaction where corruption can occur. PHOTO | FILE | NATION MEDIA GROUP 

By LYNET IGADWAH, ligadwah@ke.nationmedia.com

In Summary

• The high corruption indices are pegged on the long and tenuous processes involved in delivering public sector services to the private sector.

A new report by the Kenya Private Sector Alliance (KEPSA) highlights the import and export sub-sector as the most likely point of interaction where corruption can occur.

The sub-sector topped the list of the 7 areas of trade and service delivery where the public and private sector often interact, which were highlighted in the report at 36 per cent risk chance.

This is followed by Procurement and tax collection with 13 per cent risk chance, the Licensing process at 11 per cent while inspection and quality assurance processes are at 8 per cent.

Environment and safety certification comes at the bottom of the list at 3 per cent risk chance in the report detailing the loopholes within the public sector that create avenues for corruption when interacting with the private sector.

The high corruption indices are pegged on the long and tenuous processes involved in delivering public sector services to the private sector.

“This is especially the case where the private sector would prefer faster delivery of services,” said Dr Charles Otieno, a governance and public sector reform specialist.

Major factors shaping corruption risk in their interaction with the private sector include numerous documentation, slow pace of service delivery, poor understanding of procedures, high tax levies and high transaction cost on business.

During unveiling of the report yesterday, KEPSA Director Patrick Obath said it's estimated that the country is losing over Sh69 billion annually to corruption mainly in the public sector.

“Most businesses are bullied into corruption to avoid hefty fines, levies and long procedures,” he said, noting that the amount lost through corruption when put into proper perspective could employ over 25,000 graduates in a given year.

The objective of the KEPSA report is to map out high risk areas for corruption in public sector operations and identify existing integrity management initiatives in the public sector. It also sought to know how they inter-phase with the private sector with the aim of instituting measures to mitigate against corruption.