A report by the Office of the United States Trade Representative has revealed how American firms are edged out in lucrative government contracts in Kenya.
In the report, American companies cited collusion between government officials and other foreign companies as one of the biggest hindrances to their investments in Kenya.
It was explained that most govt contracts are won based on connections with government officials even as bribes are asked for in the process.
Unlike other foreign companies, American firms reported that they tend to avoid instances when bribes are demanded, a move that makes them fall out with those influencing the tenders.
"US firms have had very limited success bidding on Kenyan Government tenders, and corruption remains a significant concern. Many of these tenders are challenged in the courts. Foreign firms, some without proven track records, have won government contracts when partnered with well-connected Kenyan firms or individuals.
"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," read the report in part.
On the other hand, the companies also detailed that in some instances, they are challenged in court after being awarded govt contracts.
At the corridors of justice, it was detailed that companies also have to pay bribes in addition to the lengthy court processes.
"US firms continue to report challenges competing against foreign firms that are willing to ignore legal standards or engage in bribery and other forms of corruption. Corruption is widely reported to affect government procurements at the national and county levels.
"Kenya has not effectively implemented its anti-corruption laws. US firms routinely report direct requests for bribes from all levels of the Kenyan Government. Despite efforts to increase efficiency and public confidence in the judiciary, the backlog of cases and continued corruption undermine the judicial system’s credibility and effectiveness," the report read in part.
However, it was highlighted that Judicial reforms were underway
The report by the US Trade Office aims to analyse some of the barriers faced by American investors across the globe.
