An African Development Bank (AfDB) report has revealed that Kenya loses at least Ksh297 billion to corruption, tax exemptions and public spending inefficiencies.
Published on Wednesday, July 2, the report claimed that $1.5 billion (about Ksh193 billion in the current exchange rates) was lost annually through corruption and illicit financial flows.
These funds alone could transform health, education, and infrastructure development.
A further $800 million (Ksh103 billion in the current exchange rates) loss is attributed to tax exemptions and incentives across several sectors, and public spending inefficiencies cost another 5 per cent of gross domestic product. "Combined, these losses undermine Kenya's capacity to finance its development and reduce reliance on external aid," AfDB stated.
