A CRITICAL EXAMINATION OF THE SOCIOECONOMIC IMPLICATION OF CORRUPTION IN KENYA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Corruption is the greatest threat to growth and governance in the world. Worldwide, corruption affects almost every nation. Today, every state in the world is aware of the detrimental effects corruption has on its economy. Over the years, corruption has steadily been growing in terms of the money as well as the personalities involved.

Corruption is now compared in Kenya, as it is in other areas of the world, to an ogre that has taken hold of Kenyan society. It is the economic apathy that has consistently led to a range of economic issues in developing nations(Adeoye, 2019). Numerous negative effects have resulted from corruption in practically every aspect of society. Similarly, corruption undermines growth, undermines democracy, inhibits foreign and domestic investment, distorts competition, and is generally bad for the market structure.

Corruption is responsible for the underdevelopment mostly in Africa where corruption cases are high. Development and economic growth in these African states have stagnated with minimal progress. A number of issues can be attributed to the underdevelopment and economic status of African states. However, the monster called corruption, which has ravaged almost all African states remains the key hindrance of development in (AfricaAbshir, 2016).

The socio-economic status of African states is made worse by endemic corruption. Additionally, Kenya has been faced with a number of corruption scandals. The most famous corruption case in Kenya is the Goldenberg case that happened in the 1990s under President Moi's regime. The scandal involved subsidized exports of gold. In the scandal, the government-subsidized exports of gold more than what was agreed upon to a company called Goldenberg International. The excess amount was 35% more in Kenyan shillings than their foreign currency earnings (Robinson, 2017).

The nation has also had to deal with other scandals involving corruption in more recent times, including the Kimwarer Dam, the Arror, the National Youth Service (NYS), and the Eurobond. Millions of dollars' worth of international loans guaranteed by Eurobonds were embezzled in the 2014 Eurobond scam. The Ministry of Devolution in New York State misappropriated $791 million intended for tender products and services. Ksh 21 billion was lost in the recent Arror and Kimwarer Dam controversy. All these corruption casesinvolve projects that were meant to spur economic growth and development, but the money was diverted to people's pockets through corruption (Akqay, 2018).

According to the 2019 corruption perception Index, Kenya was ranked 137 least corrupt nation out of 180 countries. Corruption is a deadly vice in Kenya which needs to be urgently addressed, or else it is likely to bring the country's economy to its knee. Kenya is already grappling with ballooning external debts. Therefore, a survey will be conducted in order to critically examine the socioeconomic implication of corruption in Kenya.

1.2 Statement of the Problem

Kenya's biggest administration challenge is still corruption. It is a serious danger to sustainable development and economic growth, which is reflected in poverty, inequality, lost income, and low human capital. While corruption has always existed in Kenya, there has been a noticeable increase in the number of incidents, regularity, personalities involved, and amount of money misappropriated in recent years.

Furthermore, rampant corruption cases continue to stand in the way of Kenya's path to economic growth. Also, it affects one's incentive to allocate time and effort to productive activities, like accumulating knowledge and skills. Human capital plays a key role in economic growth; therefore, when human capital is distorted, then it affects economic growth and development. Corruption also hinders human development, thereby compromising people's futures. Despite these challenges, development and economic growth remain one of the biggest goals of Kenya.

Additionally, corruption drains any economy robbing it of the resources that are needed for development like infrastructure projects. Kenya being a developing country, corruption is an impediment to the country's economic growth. The strategies in place so far have done little to address the challenge of corruption.Thus, it is in the light of these that the study seeks to critically examine the socioeconomic implication of corruption in Kenya.

1.3 Objectives of the Study

The main purpose of this study is to critically examine the socioeconomic implication of corruption in Kenya. Specifically, the study will;

1. Evaluate the prevalence of corrupt practices in Kenya public sector.

2. Evaluate the major causes of corruption In Kenya public sector.

3. Evaluate the corrupt practices prevalent in Kenya public sector.

4. Investigate the effects of Corruption on socioeconomic development of Kenya.

1.4 Research Question

The following questions have been prepared for the study:

1. What is the extent of corrupt practices in the Kenya public sector?

2. What are the primary causes of corruption within the Kenya public sector?

3. Which corrupt practices are commonly observed in the Kenya public sector?

4. How does corruption affect the socioeconomic development of Kenya?

1.5 Significant of the Study

A critical examination of the socioeconomic implication of corruption in Kenya will be revealed to the government at various levels, politicians, judges, lawyers, prosecutors, police officers, investigators and auditors. It will additionally enlighten the Kenya government on prioritizing regional and international collaboration with corruption fighting institutions. Furthermore, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to a critical examination of the socioeconomic implication of corruption in Kenya.

1.6 Scope of the study

The scope of this study is boarded on critical examination of the socioeconomic implication of corruption in Kenya. Theoretically, this study will evaluate the prevalence of corrupt practices in Kenya public sector, evaluate the major causes of corruption in Kenya public sector, evaluate the corrupt practices prevalent in Kenya public sector and investigate the effects of corruption on socioeconomic development of Kenya.

Geographically, the study will be delimited residents of Kenya.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.

In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.8 Definition of Terms

Corruption: this referred to “the misuse of public office for private gains”. In Kenya, corruption is an offence under any of the provisions of sections 39 to 44, 46 and 47 of the Economic and Anti-Corruption Act, 2003 and includes bribery, fraud, embezzlement or misappropriation of public funds, abuse of office, breach of trust and an offence involving dishonesty (Economic and Anti-Corruption Act, 2003)

Socioeconomic Development: relating to or concerned with the interaction of social and economic factors.