Looting of public resources is budgeted corruption in Kenya

 Dailynews reporter

KENYA: THE current situation of a nation, particularly Kenya, should not be overlooked when a former senior government official who...

once held the country’s highest judicial office, the Chief Justice, speaks about national affairs.

The remarks made by former Chief Justice of Kenya, David Maraga, are highly significant not only from the perspectives of economic development and good governance but also as a reflection of the damaging impact of corruption in Kenya. Although governments are expected to operate under principles of transparency and accountability, these remarks highlight the persistent challenges that undermine good governance.

Public infrastructure projects are widely regarded as the backbone of economic growth in many developing countries. The construction of roads, railways, dams, hospitals and energy facilities is essential for improving citizens’ quality of life and supporting long-term development.

However, in Kenya, David Maraga’s statements and public remarks suggest that serious concerns exist, particularly regarding the design, funding and implementation of such projects. These observations imply that public infrastructure initiatives may have become fertile ground for corruption. Such concerns are especially noteworthy when raised by high-ranking former government officials who, by virtue of their positions, had access to critical information about how these projects are managed.

It is believed that Kenyans should be concerned about the serious issue of budget corruption, especially through government development projects, as the nation prepares for the 2027 general election.

Former Chief Justice of Kenya David Maraga has warned about the looting of public resources. This is a critical matter that must be tackled at all levels. The political obsession with “projects, projects, projects” is the simplest way to facilitate the misappropriation of public funds, according to Maraga.

According to analysts, Kenyans must determine whether David Muraga’s comments have reignited a national dialogue regarding governance, accountability and the true cost of corruption in Kenya’s development agenda. However, the subsequent analysis will investigate the potential consequences of this issue when corruption is also budgeted.

The political appeal of mega projects can become a favourite means of diverting public resources if they are not managed properly. Infrastructure initiatives are politically attractive in many African countries. Large construction projects serve as visible evidence of government action and are often used by certain legislators to showcase development progress to voters.

Major infrastructure projects, such as highways, railways and energy facilities, have been prioritised by Kenya’s successive governments. These projects are often promoted as drivers of economic growth that could transform the country into a regional economic hub.

One of the most notable examples in Kenya is the Standard Gauge Railway, which connects the capital, Nairobi, with the coastal city of Mombasa. The railway was built to optimise cargo transport and reduce logistics costs.

Complex procurement procedures, billions of pounds in public funds and multiple layers of contractors and subcontractors are often involved in these types of projects. If transparency and oversight mechanisms are lacking, these characteristics can create opportunities for corruption. Maraga’s assertion is that the scale and complexity of these projects are exactly what make them attractive targets for financial misconduct.

However, what is the precise comprehension of budget corruption that the former Chief Justice of Kenya is discussing?

For those unfamiliar with this new terminology, budget corruption refers to the act of diverting, misusing, or inflating public funds allocated in national budgets for private gain. This misconduct can occur at various stages of the budget cycle, such as procurement, implementation, auditing and project design.

Large infrastructure projects are especially vulnerable to this scenario because of their significant financial commitments. In some cases, project costs may be deliberately inflated to divert funds through kickbacks, overpriced contracts, or fake services.

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For example, if a road construction project is contracted for 700 million US dollars but its estimated cost is 500 million US dollars, the additional funds might be diverted through complex financial arrangements involving contractors, intermediaries and corrupt officials. Without strong procurement oversight and transparent auditing systems, it becomes very difficult to detect such practices. Something appears to be wrong in Kenya, according to the former chief justice.

Maraga’s critique of the “projects, projects, projects” approach highlights a broader concern about how political incentives, rather than economic necessity, influence development priorities in Kenya. Maraga reveals that infrastructure projects often serve as opportunities for political patronage. In return for political support or financial contributions, governments may award contracts to companies or individuals with political connections.

According to him, the goal of development initiatives in this system shifts from creating public value to distributing financial gains among political networks. As a result, projects might be approved despite the uncertainty about their economic benefits or the underfunding of more urgent public needs, such as healthcare, education, or social protection.

It is clear from Maraga’s assertion regarding budgeted corruption that corruption in infrastructure projects has considerable economic effects in Kenya. Initially, the strain on public finances is worsened by inflated project costs. Corruption can significantly increase public debt when governments take on large debts to finance development initiatives.

Economists and policy analysts in Kenya have voiced serious concern about the country’s rising debt levels. Although infrastructure investment can boost economic growth, corruption undermines the economic advantages of these projects.

Secondly, the character of infrastructure is diminished by corruption. Construction standards may be compromised when contracts are awarded based on political connections rather than technical competence. He maintains that taxpayers will incur substantial long-term expenses as a consequence of defectively constructed roads, bridges and public facilities necessitating costly repairs in a brief period.

Maraga’s third and most significant concern is that corruption erodes investor confidence. When allocating capital, international investors carefully assess governance indicators such as corruption levels. If corruption becomes widespread in public procurement systems, investors may view the business environment as volatile and risky.

The effects of corruption in Kenya go beyond infrastructure spending. When public funds are misused through inflated projects, less resources are available for vital social services. This leads to shortages of equipment and medical supplies, hindering healthcare systems. Schools face shortages of facilities, textbooks and qualified teachers. In rural areas, communities often wait for years for basic infrastructure such as water systems, electricity and roads, which are essential for quickly transporting their produce to the market.

Ultimately, corruption deprives the citizens most in need of resources. For many ordinary Kenyans, the consequences of corruption are not abstract. They are seen in unfinished development projects, underfunded schools and overcrowded hospitals.

The long-term effect of corruption on national debt is one of the most worrying aspects of development efforts. The government expects that the economic growth resulting from borrowing to fund infrastructure projects will generate enough revenue to repay the loans.

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However, the country might be left with significant debt without gaining the expected development benefits if corruption raises project costs or reduces their economic efficiency. This creates a financial burden that future generations will need to repay through higher taxes or less public spending. In Kenya, the government has been working to balance fiscal responsibility with development expenditure, which has increased concerns about debt sustainability in recent years.

Therefore, in my view, Maraga’s caution highlights the urgent need for stronger accountability mechanisms in Kenya’s public finance management system. I will avoid giving a lecture on how to address this corruption crisis; instead, I emphasise that the fight against corruption cannot rely solely on government institutions. Transparency and accountability are also greatly shaped by civil society organisations, investigative journalists and ordinary citizens.

It is now widely recognised that Kenya’s vibrant media sector has revealed numerous corruption scandals linked to infrastructure expenditure and public procurement in recent years. These efforts are essential for ensuring that development initiatives prioritise public welfare over private profit.

Kenya’s ambitious infrastructure development plan reflects a genuine desire to improve living standards and modernise the economy. Roads, railways, ports and energy projects are essential components of sustainable economic growth. According to Kenya’s former chief justice, development strategies must be supported by strong governance systems, which currently are lacking in Kenya, as Maraga’s comments suggest.

Infrastructure investments risk becoming corrupted vehicles instead of engines of development without transparency and accountability. Kenya’s challenge is to ensure that development initiatives are designed, financed and implemented to maximise public value, rather than abandoning them.

According to analysts examining the economic performance of the Eastern African Community (EAC), they believe that the warning issued by former Chief Justice David Maraga serves as a strong reminder that corruption in Kenya is often hidden within programmes meant to promote national development.

The pattern of misappropriation of public resources is becoming more apparent in Kenya under Gen Z’s watch, due to governments’ excessive focus on large infrastructure projects without adequate oversight.