Corruption has been a persistent and pervasive issue in Kenya, hindering its development and eroding public trust. The establishment of the Ethics and Anti-Corruption Commission (EACC) was meant to curb the vice but it has struggled to make any real change.
Over the years, the country has been rocked by numerous scandals, some of which have involved staggering sums of money and high-ranking officials. Here’s a look at some of the biggest corruption scandals that have plagued Kenya:
1. The Goldenberg Scandal
This is arguably the most infamous corruption scandal in Kenyan history. It involved the fraudulent export of gold, with the government paying exporters inflated subsidies. The scandal, which occurred in the 1990s, is estimated to have cost Kenya the equivalent of more than 10% of the country’s annual gross domestic product (GDP). This translates to hundreds of millions, if not billions, of dollars. Some estimates place the figure between US$600 million and US$1.5 billion.
2. The Anglo-Leasing Scandal
This scandal involved fraudulent government contracts for security-related equipment. Companies were paid huge sums of money for goods and services that were never delivered. The scandal, which came to light in the early 2000s, involved high-ranking government officials and is estimated to have cost taxpayers billions of shillings.
It’s estimated that the Anglo-Leasing scandal cost Kenyan taxpayers billions of shillings. While precise figures vary, reports suggest that the total amount could be anywhere between US$100 million to US$700 million.
The scandal involved at least 18 high-value government security contracts that were awarded to fictitious companies. These contracts were grossly inflated, with the government paying far more than the actual value of any goods or services provided.
One example is the contract for a passport printing system. A French firm initially quoted €6 million, but the contract was awarded to Anglo Leasing Finance for €30 million. Anglo Leasing would have then subcontracted the same French firm to do the work. Another case involved a contract for an oceanographic vessel for the Kenyan Navy. The contract was awarded to a company linked to Anglo Leasing for around US$140 million, even though it’s unclear if the vessel was ever delivered or if it met the required specifications.
3. The Turkwel Dam Scandal
This scandal involved the construction of the Turkwel Dam, a hydroelectric power project. The project was riddled with corruption, with inflated costs and substandard work. The dam, which was completed in the 1990s, cost three times the original estimate and has never operated at full capacity.
4. The National Youth Service (NYS) Scandal
This scandal involved the misappropriation of funds at the National Youth Service, a government program aimed at providing skills and employment to young people. The scandal, which came to light in 2015 and 2018, involved fraudulent payments to companies linked to senior government officials.
The scandal involved the loss of hundreds of millions of Kenyan shillings. While exact figures vary depending on the source and the specific phase of the scandal, it’s estimated that at least Ksh. 791 million was misappropriated in the initial phase. Some reports suggest the total amount could be as high as Ksh. 1.8 billion.
5. The Arror and Kimwarer Dams Scandal
This scandal involved the construction of two dams, Arror and Kimwarer, in Elgeyo Marakwet County. The project was riddled with corruption, with billions of shillings being misappropriated. The dams, which were supposed to be completed in 2021, have yet to be built.
The amount of money lost in the Arror and Kimwarer dams scandal is estimated to be in the tens of billions of Kenyan shillings. While investigations are still ongoing, reports suggest that at least Ksh. 21 billion was misappropriated. Some sources place the figure much higher, closer to Ksh. 63 billion.
6. The Kenya Medical Supplies Authority (KEMSA) Scandal
This scandal involved the misappropriation of funds at the Kenya Medical Supplies Authority, a government agency responsible for procuring and distributing medical supplies. The scandal, which came to light in 2020, involved inflated prices for COVID-19 related supplies.
The scandal involved billions of Kenyan shillings, with estimates ranging from Ksh 7.8 billion to over Ksh. 20 billion. This money was intended for the procurement of essential medical supplies, including PPEs, masks, and test kits.