American companies face rampant corruption when bidding for Kenyan government contracts, according to an explosive new report from US trade officials.
The United States Trade Representative’s (USTR) latest National Trade Estimate Report paints a damning picture of the obstacles confronting US businesses seeking to win procurement deals in the East African nation.
“US firms have had very limited success bidding on Kenyan government tenders, and corruption remains a significant concern,” states the report, an annual publication cataloguing barriers to US exports and investment around the world.
It alleges that many Kenyan tender processes are marred by graft, with lucrative contracts frequently awarded to well-connected local firms regardless of their track record or ability to deliver.
“Foreign firms, some without proven track records, have won government contracts when partnered with well-connected Kenyan firms or individuals,” the report claims.
The findings are likely to strain trade relations between Washington and Nairobi at a time when the Biden administration is seeking to boost US economic engagement across Africa.
‘Vulnerable to Manipulation’
The report reserves particular criticism for Kenya’s troubled electronic procurement platform, the Integrated Financial Management Information System (IFMIS).
IFMIS was launched in 2019 with the aim of increasing transparency and efficiency in government contracting. However, the USTR report says it has been undermined by technical glitches, a lack of training and alleged security flaws.
“US companies have expressed concerns about IFMIS due to insufficient connectivity and technical capacity in county government offices, apathy from county government officials, central control shutdowns, and security gaps that render the system vulnerable to manipulation and hacking,” the report states.
Kenya’s President William Ruto has vowed to tackle corruption since taking office in September 2022. However, US officials and companies will be looking for tangible evidence that his government is tackling the “tendency to insiders and favouritism” flagged in this latest report.
