The U.S. government has insisted that pervasive and entrenched corruption is the main obstacle discouraging foreign investments in Kenya.

Kenya’s sluggishness and failure to prosecute greedy officials has slimmed the country’s chances of getting foreign direct investment (FDI), according to a 2023 report on corruption evaluation by the U.S. government.

The U.S. Department of State identified “lack of political will, limited progress in prosecuting corruption cases, and the slow pace of reform in key sectors as the primary constraints to Kenya achieving a higher ranking.” 

Many investors’ confidence in the Kenyan economy waned due to numerous local media reports detailing corruption in key government sectors, including health and ICT.

The report stated, “Corruption has been an impediment to FDI, with local media reporting allegations of high-level corruption related to health, energy, ICT, and infrastructure contracts.”

Time and again, journalists have reported instances of corruption as the driving factor in selecting a company to bid for a government contract. 

Aware of the opaque process of contract awards, American businesses have become wary of making investments in Kenya as doing so would endorse corruption and violate the Foreign Corrupt Practices Act.

“Numerous reports have alleged that corruption influenced the outcome of government tenders, and some U.S. firms assert that compliance with the Foreign Corrupt Practices Act significantly undermines their chances of winning public procurements, the American government stated.