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An American report reveals the corruption that has led to tense trade relations between Kenya and the United States

An American report reveals the corruption that has led to tense trade relations between Kenya and the United States

Bribery and corruption in the East African country is poised to severely damage trade relations between Kenya and the United States, an official report issued by the US government has said.

It was called the American report National Trade Estimates Report on Foreign Trade Barriers (NTE Report)He stressed the danger of bribery and corruption when doing business in the East African country.

  • “Corruption remains a significant barrier to doing business in Kenya. American companies continue to report challenges faced by foreign companies willing to ignore legal standards or engage in bribery and other forms of corruption. The report reads in part.
  • “Corruption is widely reported to impact government procurement at the national and county levels. Kenya has not effectively implemented anti-corruption laws. US companies routinely report direct bribery requests from all levels of Kenyan government.” She adds.

The report highlighted how major American companies lost Kenyan contracts because they refused to pay bribes or wet the beaks of the relevant Kenyan authorities.

The report also stated how efforts by Kenyan authorities to address the menace of bribery and corruption have yielded little results, citing a backlog of cases and persistent misconduct.

  • “Despite efforts to increase efficiency and public confidence in the judiciary, the backlog of cases and persistent corruption undermine the credibility and effectiveness of the judicial system. While judicial reforms move forward, bribery, extortion, and political considerations continue to influence court cases. The report states that.

The report also touched on the challenges faced by foreigners who try to own a piece of real estate in the country. She called for Kenyan laws on property rights for foreigners that prevent them from owning property in the country.

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This ban comes under the 2010 Kenyan Constitution which states that foreigners are not allowed to own freehold rights in Kenya, but are only allowed to own leasehold rights for a period of up to 99 years.

The report complained of the ambiguity in the process of obtaining a clear title to unused lands.

According to the report, US investors seeking to acquire an undeveloped piece of land risk receiving fake titles or land with multiple titles and licensed sales.

Recommended reading: US investigating billionaire Adani and his group over alleged bribery

what do you know

  • American companies based in Kenya operate and do business in a wide range of sectors ranging from construction, financial services, telecommunications, energy, manufacturing and technology.
  • The United States and Kenya also boast one of the largest trade relationships in the world, with bilateral investment and trade totaling approximately $1.6 trillion annually.
  • Corruption in African countries has been cited as an albatross to the political, economic and social development of the continent.

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