March 29, 2026
Mudavadi Says Kenya Loses Ksh608B Annually On Corruption

Mudavadi Says Kenya Loses Ksh608B Annually On Corruption

Prime Minister CS Musalia Mudavadi has stated that supply chain and procurement managers in public offices must make it difficult to engage in malpractices in order to discourage the vice.

According to Mudavadi, Kenya loses approximately Sh608 billion, or 7.8 percent of its GDP, each year to corruption, according to the Ethics and Anti-Corruption Commission.

Globally, about USD2.6 trillion (about Sh338 trillion) is lost to corruption, accounting for approximately 5% of global GDP.

“Kenya is ranked 126 out of 180 countries in the 2023 Transparency International Global Corruption Index,” he said.

The PCS stated that it is unfortunate that corrupt individuals find it easier to engage in illegal activities with government-funded projects than with donor-funded ones.

“In other words, we respect and fear foreigners more than we respect our own people,” Mudavadi said.

He addressed the leaders of the Supply Chain and Procurement Forum 2024 in Mombasa on Thursday.

“You must create fear in the discharge of irregularities in our procurement processes,” he told the 320 heads of supply chain and procurement who attended the forum.

He urged managers to avoid being influenced by political forces in carrying out their duties, stating that if something goes wrong, they will be the ones to bear the brunt of the consequences.

Managers must distinguish between personal, sectarian, political, and national interests while carrying out their duties, according to the PCS.

“Protect your profession from political influence that has led to awards being made based on political considerations rather than on merit.

“You must fight back ‘the call from above’ being used to influence your decisions and remain steadfast in your compliance to procurement regulations and procedures,” Mudavadi said.

John Karani, chair of the Kenya Institute of Supplies Management, stated that the organization is working with the judiciary to ensure that its members are not victimized when things go wrong.

He stated that KISM has the ability to investigate professional misconduct and work with modalities to avoid court action if necessary.

Karani stated that there is a need to create and improve anti-corruption tools.

“We need to have standards across the board so that people do not buy the same pen at different prices,” Karani said.

“If a pen costs Sh100, it should range within that Sh100 and not have somewhere that the pen costs Sh1,000.”

He did admit that the corruption monster has been a thorn in the flesh for the supply chain and procurement departments.

According to Karani, digitizing the processes will help to reduce, if not eliminate, corruption.

“The Electronic Government Procurement System is a sure way of ensuring no money is lost in the process of procuring equipment,” he said.

Mudavadi Says Kenya Loses Ksh608B Annually On Corruption

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