American investors seeking opportunities in Kenya face the challenge of persistent demands for bribes from government officials. This issue has come to light in the 2024 Biennial Report on the Implementation of the African Growth and Opportunity Act which highlights corruption as a major obstacle to conducting business in the country.....CLICK HERE TO READ THE FULL ARTICLE>>>
US firms operating in Kenya report frequent solicitations for bribes by government officials thus creating an unfavorable business environment. This situation often results in American investors losing out to competitors from other countries who may be more willing to engage in such practices.
While specific firms and individuals affected by these demands remain unnamed, the impact is felt across various sectors of the economy. Kenya’s position in Transparency International’s 2023 Corruption Perception Index, ranking 126th out of 180 countries, highlights the severity of this issue.
US companies struggle to compete with businesses that are willing to disregard legal standards or participate in corrupt practices, which not only hinders fair competition but also undermines trust in the overall investment climate.
Despite these challenges, Kenya has made some progress in addressing corruption. The government has initiated legal cases against officials involved in corrupt activities and anti-corruption agencies are improving their coordination efforts.
Kenya’s independent judicial system plays a crucial role in protecting citizens’ rights and freedoms. However, challenges persist, particularly in the realm of import licensing which affects trade relations between Kenya and the US. Non-transparent and discretionary practices in this area have particularly impacted agricultural, poultry, and meat imports from the US.
In other news, the Philippines has secured the position to host the Loss and Damage Fund (LDF) Board as announced by President Ferdinand Marcos Jr. This decision was reached during a closed-door meeting in Incheon, South Korea on July 9, 2024.
The Philippines has emerged victorious among eight contenders, including Antigua and Barbuda, Armenia, Barbados, Bahamas, Togo, Kenya, and Eswatini.
The LDF Board, established at a United Nations climate change summit in Dubai the previous year, serves as a critical financing mechanism to support vulnerable countries in addressing the escalating costs and impacts of climate-related disasters.
As host, the Philippines will play a pivotal role in operationalizing this multi-million dollar fund, with responsibilities encompassing the establishment of access modalities, allocation parameters, and resource mobilization strategies…CONTINUE READING>>
