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Kenyans pay more bribes to meet tax officials, get utility services report shows

The World Bank is warning that Kenya risks being trapped in a middle-income status with corruption being cited as the biggest obstacle to growth. According to the 34th edition of the Kenya Economic Update, nearly 36% of firms in Kenya report having experienced at least one bribery request in the past year, a proportion that […] The post Kenyans pay more bribes to meet tax officials, get utility…

Kenyans pay more bribes to meet tax officials, get utility services report shows

Kenyans face higher bribery risks when dealing with tax officials and obtaining essential services, according to a new report from the World Bank. Nearly one-third of firms in Kenya reported encountering at least one bribery request in the past year, a rate higher than their Sub-Saharan African counterparts and upper middle-income economies.

The report highlights that 22% of businesses are expected to pay bribes to secure tax-related services, while 41% and 29% anticipate such payments for electrical connections and construction permits respectively. Verena Fritz, Lead Governance Specialist at the World Bank Group, stated that the excessive burden of bribery hinders Kenya's competitiveness.

Despite Kenya's resilient economy, fiscal pressures persist, with the fiscal deficit accounting for 6.8% of GDP in the 2025/26 financial year. Public debt has risen to Ksh 13.3 billion, equivalent to 72.3% of GDP as of August 2026. Dr Qimiao Fan, World Bank Division Director, emphasized that while employment is growing, the quality of jobs remains a concern, with 84% of jobs remaining informal and offering lower wages and productivity.

Treasury Principal Secretary Dr Chris Kiptoo, during the report's launch, mentioned the government's intention to rationalize spending to lower the fiscal deficit and achieve a target of 4.6% of GDP by 2030/31. However, the primary challenge lies in job creation, as 83.8% of jobs remain informal. The World Bank attributes Kenya's 5.2% growth in the first half of 2026 to strong performance in industry and services sectors, which offset the slowdown in agriculture.

Written by urgent.news from KBC's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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