National commemoration of the African Anti-Corruption Day

This year’s edition of the African Anti-Corruption Day, which is commemorated every July 11, is the fifth one. The commemoration is borne out of the continental realisation of the need for countries to continuously reflect on approaches adopted in the fight against corruption and unethical conduct, in order to assess their impact in line with the changing trends and patterns of corruption.

The African Anti-Corruption Day was designated by the African Union (AU) as part of the implementation of the African Union Convention on Preventing and Combating Corruption (AUCPCC). The Convention, which was adopted in Maputo, Mozambique, on July 11, 2003 and came into force in 2006, provides the regional legal framework for fighting corruption in Africa.

The theme for this year is “Regional Economic Communities: Critical Actors in the Implementation of the African Union Convention on Preventing and Combating Corruption.”

The Ethics and Anti-Corruption Commission

The Ethics and Anti-Corruption Commission (EACC) is a Constitutional Commission established pursuant to Article 79 of the Constitution and Section 3 of the EACC Act No. 21 of 2011.  The mandate of the Commission is to combat and prevent corruption, economic crime and unethical conduct in Kenya through law enforcement, prevention, public education, promotion of standards and practice of ethics and integrity.

The theme for this year’s commemoration of the African Anti-Corruption Day underscores the continued call for African countries to partner and collaborate in mitigating the challenge of corruption. Notably, studies have shown that corruption remains a major impediment to the overall prosperity of the African people as envisioned in the Africa Agenda 2063 and the Sustainable Development Goals (SDGs).

The commemoration comes in the wake of intensified efforts in Kenya to tame corruption, especially in the public sector. These efforts have not been in vain. Although corruption still remains a big challenge in the nation, tremendous progress has been made in the quest to mitigate it. For instance, according to the Transparency International Corruption Perception Index, Kenya recorded notable improvement from position 144 in 2018 to 137 in 2019 and 124 in 2020 with a score of 31, gaining three points and rising 20 positions during the period.

The African Anti-Corruption Day is aimed at demystifying the responsibilities of all sectors of national economies in the fight against corruption. This year, the commemoration will further highlight the importance of regional collaboration. The events will additionally serve to raise public and stakeholder awareness on the dangers of corruption and enhance the capacity of the various actors to more effectively participate in the anti-corruption process. 

Ministry of EAC and Regional Development, State Department for East African Community

Undoubtedly, corruption remains the most daunting challenge to good governance, sustainable economic growth, peace, stability and development in Africa. It has devastating effects on progress, stability and development of the continent. It impedes economic growth by discouraging foreign investments.

Corruption creates distortion in resource allocation and competitive markets, increases the cost of doing business, and reduces the net-value of public spending. It also reduces the quality of services and public infrastructure and the volume of tax revenues, and encourages the misappropriation and misallocation of scarce resources.

In the political realm, corruption undermines the rule of law, respect for human rights, accountability and transparency, and weakens government institutions. This in turn erodes public legitimacy in government and compromises good governance. The social costs of corruption are also injurious as it deepens income inequality and poverty, and adversely affects good moral values in the society. In general, corruption is a challenge to sustainable economic development, peace and good governance.

Africa has demonstrated growing commitment in tackling the problem of corruption. A number of regional, sub-regional and national instruments have been devised to combat the menace. The AUCPCC and the Southern Africa Development Community (SADC), the Economic Community for West African States (ECOWAS) and the East African Community (EAC) protocols are examples of this. Many African countries have also established national anti-corruption institutions towards tackle the problem.

The AUCPCC was adopted by African Heads of states in 2003 and came into force on August 5, 2006. It was formulated with the objective to prevent, detect, punish and eradicate corruption and related offences in Africa.

The Convention defines corruption and covers a wide range of offences including bribery, illicit enrichment, illegal funding of political parties, money laundering and diversion of property by public officials. Among others, the Convention requires member states to establish anti-corruption legislations and bodies, and urges African government officials to declare their assets and abide by ethical codes of conduct.

AUCPCC is the most comprehensive amongst regional anti-corruption conventions and serves as a milestone, since it adopted measures against corruption, which are specific to Africa. It also signifies the consensus of African states in the areas of prevention and criminalisation of corruption.

Regional economic communities (RECs) such as the EAC play an important role in facilitating candid and constructive dialogue, as well as exchanges of best practices, among countries. RECs additionally facilitate progress in the fight against corruption and the domestication of legislation such as AUCPCC.

In light of the significant challenges posed by corruption and its impact on governance, economic growth and social development, a wide range of instruments have emerged in East Africa to address the problem. These instruments vary in scope and are binding in nature. They range from international conventions and protocols to voluntary guidelines and standards as highlighted in the subsequent paragraphs.

The fundamental Principles of the Community articulated in Article 6 of the Treaty and particularly paragraph (d), covers good governance, including adherence to the principles of democracy, the rule of law, accountability, transparency, social justice, equal opportunities, gender equality, as well as the recognition, promotion and protection of human and peoples’ rights.

The Operational Principles of the Community defined in Article 7, particularly in clause 2, provides that the Partner States undertake to abide by the principles of good governance, including adherence to the principles of democracy, the rule of law, social justice and maintenance of universally accepted standards of human rights.

The EAC Protocol on Preventing and Combatting Corruption is currently in draft stage. The objectives of the protocol are to:

1. Promote and strengthen the development of mechanisms needed to prevent and combat corruption;
2. Promote cooperation among the Partner States to ensure efficiency and effectiveness of the measures for preventing and combating corruption; and
3. Promote harmonisation of laws, policies and strategies relating to preventing and combating corruption.

The Protocol is being formulated to establish a framework for cooperation with all the anti-corruption agencies and institutions in the EAC region. This framework of cooperation will undertake and relate to matters such as liaison, reporting on corrupt elements, sensitisation on corruption and harmonisation of anti-corruption laws, among others.

The EAC Protocol covers preventive measures, enforcement, asset recovery and forfeiture, regional cooperation, and technical assistance.

Good governance is a process whereby public and private institutions manage resources in a manner that promotes development, human rights, justice, peace, accountability, responsiveness, inclusiveness, democracy and adherence to the rule of law. In this regard, the EAC Good Governance Protocol was initiated as a good governance framework.

The protocol is anchored in the following key pillars:

• Human rights and promotion of equal opportunities;
• Transparency and accountability through economic governance;
• Access to justice, equality and equal opportunities;
• Democracy and democratisation; and
• Adherence to the rule of law, constitutionalism and access to justice.

The East African Integrity and Anti-corruption Bill 2019 was designed to promote integrity and ethical values in the integration process as well as counter and prevent corruption and corruption related culture in the Community. It seeks to promote values in all the Organs and Institutions of the Community, develop a framework for imparting those values, and to establish acceptable standards for ethical dealing in the integration process.

The objectives of the Bill are to:

1. Promote integrity and ethical values within the Organs and Institutions of the Community;
2. Strengthen the legal framework for preventing and combating corruption within the Organs and Institutions of the Community;
3. Provide a framework for preventing and combating corruption in the Community;
4. Provide for cooperation by the national anti-corruption agencies in preventing and combating corruption; and
5. Provide for related matters.

Inefficient border procedures deter foreign investment and create opportunities for fraud and corruption. The one-stop border posts (OSBPs) come with increased transparency, which enhances security and helps reduce corruption.

The OSBP concept refers to the legal and institutional framework, facilities and associated procedures that enable goods, people, and vehicles to stop in a single facility in which they undergo necessary controls, following applicable regional and national laws to exit one state and enter the adjoining state. The OSBPs are intended to be a catalyst for trade.

A major step forward has been the introduction of an Electronic Cargo Tracking System (ECTS), which offers the benefits of maximized revenue collection; rapid movement of goods along the corridors and supply chain; elimination of non-tariff barriers to trade and traffic; reduction of corruption cases and promotion of integrity.

Corruption is a multifaceted phenomenon assuming different shades, forms, dimensions, and dynamics. Therefore, effectively addressing it requires a holistic, innovative and strategic approach. 

The media has a major task of not only disseminating information and educating the general populace on key public issues, but also taking on the challenge of agenda setting.  Even as it does this, the media is not immune to corruption. Media practitioners have often been accused of taking bribes, peddling influence, and moulding information and reporting to achieve some specific private ends. In other words, the media could be both a perpetrator of corruption and an agency for its control, depending on the nature, ethical culture, regulatory regime and character of the media.

The media should fully join the fight against corruption and promote a corruption-free integration process.

Kenya Revenue Authority 

Corruption impacts negatively on revenue collection and economic performance. The Kenya Revenue Authority (KRA) is cognizant of this challenge and has continued putting measures to fight the vice. 

Like in any other revenue administration, KRA officers are exposed to rogue taxpayers with the intention of corrupt dealings. Therefore, KRA established an Intelligence and Strategic Operations (I&SO) department that has robust framework to collect, process and monitor the use of the intelligence gathered.

KRA collaborates with other law enforcement agencies, such as EACC, Asset Recovery Agency and the Directorate of Criminal Investigations in the fight against corruption. The Authority is currently implementing the East African Revenue Authorities anti-corruption framework where the public is able to provide information on tax evasion and any other malpractices without fear of reprisal, victimisation or discrimination.

KRA has automated all its core business processes through the iTax and iCMS platforms. These are supplemented by secondary platforms such as ECTS, which tracks the movement of transit cargo; Integrated Scanner Management Solution that provides Customs with centralised control over cargo scanning operations; iTax Excisable Goods Management System; and the Tax Information Management System for the management of ETR transactions. These processes have minimised contact between staff and taxpayers and drastically reduced chances of staff being compromised.

KRA also undertakes employee lifestyle audits, background checks, vetting of staff, implementation of the national values and establishment of Corruption Prevention Committees (CPCs) to oversee the integrity programme.

KRA has established a reward scheme for informers, which is an incentive to the public to share information that can lead the Authority to recover tax revenue from the tax evaders. The Authority has also procured a web based anonymous reporting system (iWhistle). 

KRA is committed to zero tolerance to corruption and shall continue expressing passion, dedication and vigour to combat corruption in the true spirit of public servanthood. 

Transparency International

In African, corruption has metamorphosed into new forms, so lethal that Sub-Saharan Africa still ranks as the lowest performing region on the 2020 Global Corruption Perception Index by Transparency International, the global anti-corruption movement. The region got an average score of 32 against the global average of 43 out of 100. With this score, the continent’s performance shows little improvement from previous years. This underscores the need for urgent action.

The AUCPCC adopted by the African Union in 2003 provides a shared roadmap for states to implement governance and anti-corruption policies and systems on a national and regional level. To date, Kenya is among the 44 African states that have ratified the convention.

However, the slow progress in the implementation of the provisions of AUCPCC by member states continues to derail the progress made so far in the fight against corruption, indicating the need for partnerships and collaboration among the African Union, African Union Advisory Board on Corruption, the RECs and other anti-corruption stakeholders at regional and national levels, to turn the tide in combating corruption.

So, as Kenya joins all African Union Member States in marking the 5^th African Anti-Corruption Day, the commemoration should not just be another event where stakeholders take turns to condemn corruption with grandiose metaphors. It is a time to stress the need for member states to embark on enforcing the key areas of the convention, including criminalisation of illicit enrichment, which is notoriously difficult to prosecute because many suspected offenders are high-profile and well-connected figures, who often enjoy political immunity.

In May 2021, the East Africa Legislative Assembly (EALA) popularly adopted the motion for a resolution to stop Illicit Financial Flows (IFFs) in the extractives sector in East Africa. Although the motion is yet to be sent to the Council of Ministers for action, such efforts within the region should be supported and fortified with the use of technology to expedite the tracking of IFFs to make it difficult for public officials and other individuals to enrich themselves through corrupt acts, and similarly support recovery of stolen assets.

As African states identify the challenges and solutions in the fight against corruption during this year’s African Anti-Corruption Day, RECs should consider enacting comprehensive whistle-blower protection legislations as undertaken by State Parties to the AUCPCC, to protect witnesses of corruption. This is because most State Parties, such as Kenya, have failed to establish the required mechanism through enabling legislation, leading to poor protection of individuals that risk life and limb to report corruption, contrary to the commitments undertaken by ratifying the convention.

The region’s political leadership must also encourage a culture of corporate transparency, accountability, and integrity by themselves eschewing corruption. Only then will Africa start to effectively address the scourge of corruption.

UN Global Compact Network Kenya

Overview

Global Compact Network Kenya is the local network of the United Nations Global Compact (UNGC). It’s objective is to accelerate and scale the collective impact of businesses in Kenya by upholding the Ten Principles of the UNGC that cover Human Rights, Labour, Environment and Anti-corruption, and delivering the SDGs through accountable companies and ecosystems that enable change.

The 10^th Principle of the UN Global Compact

The Tenth Principle of the UN Global Compact calls upon businesses to work against corruption in all its forms, including bribery and extortion.

The UNGC encourages businesses to develop policies and programmes to tackle the issue, and Goal 16 of the SDGs – specifically target 16.5 – reinforces this call to governments and businesses alike.

Through the anti-corruption Collective Action projects of the UNGC, businesses, governments and civil society raise anti-corruption and compliance standards within their individual organisations as well as collectively.

Global Compact Network Kenya recognises that doing business with integrity is the only right way of doing business.

In June 2021, the UNGC released a publication titled, Uniting Against Corruption: A Playbook on Anti-Corruption. It enables readers to make a clear diagnosis of their local corruption landscape, identify and engage stakeholders and apply the Collective Action methodology to address identified corruption challenges and mitigate potential business risks.

Code of Ethics for Business in Kenya

To date, close to 1,000 businesses are signatories to the Code and have made a public commitment not to engage in bribery and corruption. This has greatly helped in differentiating such companies in the marketplace and has made them preferred by larger organisations as business partners.

Code signatories are required to proactively assess their corruption risks and put in place the necessary measures to reduce exposure. Recognising that corruption is a form of “waste”, such companies are able to save costs while enhancing efficiency.

For any company doing business in Kenya, whether local or international, signing the Code means that one is willing to play by the rules. Only by doing this can we create a fair operating environment where all businesses have an equal opportunity to succeed.

SME Compliance Toolkit

The SME Compliance Toolkit was developed to strengthen the knowledge and capacity of SMEs on Anti-Corruption Collective Action. Participating SMEs are expected to advance meaningful collective action efforts that prevent corruption, increase transparency, and improve the local business environment.

The Toolkit helps SMEs to manage the risk of corruption and bribery while doing business in Kenya, whether among themselves or with the government. The toolkit also helps owners and managers of businesses in Kenya to identify, assess and reduce their business exposure to corruption and bribery related risks.

The Toolkit provides:

• Guidance on how SMEs can develop a policy on zero tolerance to corruption and bribery and how to manage associated risks.
• Guidance on training programmes to help SMEs safeguard their integrity, reputation and avoid legal penalties.
• Helps SMEs put in place procedures to prevent corruption and bribery. This is a legal requirement under Section 9(1) of the Kenya Bribery Act, 2016.

Establishment of Anti-Corruption Working Group

The Anti-Corruption Working Group serves as the platform for companies to come together to learn, share experience, network, engage in joint activities and develop skills in the fight against corruption. This is aimed at improving the capacity of businesses to manage corruption risks (including those brought about by Covid-19), enhance competitiveness, and contribute to the national fight against corruption effectively and efficiently.

Ethically Aware Supplier Induction (EASI) Programme

This is a comprehensive online training programme that aims at raising awareness on ethical business practices. We are currently conducting this training among companies with the view of building an ethically responsible society beyond the Covid-19 period.

Through the programme, we train large companies and thereafter support them in training their suppliers (SMEs) on good governance and ethical business practices. The SMEs that undergo this training are accredited as “Ethically Aware”. This accreditation is acknowledged by all supporting large companies.

The Global Compact Network Kenya continues to implement key initiatives to promote good governance, transparency, accountability and integrity in businesses operations. They include:

Calls for Transparency and Accountability in the use of Covid-19 resources

In collaboration with Transparency International-Kenya and a consortium of civil society organisations, we issued a public call for transparency and accountability in the use of public resources designated for the Covid-19 emergency response by government agencies. Read more here.

Policy briefs for responsible business and business coalitions to tackle Covid-19

We issued policy briefs to business leaders on how they can use the power of the Ten Principles of the UN Global Compact to guide their response to the crisis. Please read the Anti-corruption brief.

How to join us

Companies are encouraged to join the Global Compact Network Kenya and collaborate in ensuring enhancement of ethical, responsible, and sustainable business.