US Trade Report Highlights Corruption Concerns in Kenya

A new United States trade report has raised concerns about corruption in Kenya, saying it remains a major challenge for American companies doing business in the country.

The 2026 National Trade Estimate (NTE) Report on Foreign Trade Barriers, released by the US Trade Representative in March, highlights difficulties faced by US firms operating in Kenya.

According to the report, corruption remains one of the biggest obstacles to fair competition in business.

“Corruption remains a substantial barrier to doing business in Kenya,” the report states. “U.S. firms continue to report challenges competing against foreign firms that are willing to ignore legal standards or engage in bribery and other forms of corruption.”

The findings are based on feedback from American companies operating in Kenya, many of whom often report facing demands for bribes at various levels of government.

The Seal of the United States. PHOTO/https://ustr.gov

Problems in Public Tenders

The report further notes that US companies have limited success when competing for government contracts in Kenya.

It says that corruption sometimes influences the outcome of public tenders, while others are delayed or challenged in court. In some cases, contracts are awarded to foreign firms that partner with well-connected local individuals or companies.

It also highlights concerns that government tenders are not always advertised in a clear and timely manner.

Trade Between Kenya and the US Still Growing

Despite these challenges, trade between Kenya and the United States continued to grow in 2025.

The US recorded a trade surplus with Kenya, with exports increasing to about $990.8 million (around Ksh128 billion), while imports from Kenya stood at $858.9 million (about Ksh111 billion).

Kenya is currently ranked as the 87th largest export market for US goods.

The report notes that while business between the two countries is growing, corruption still increases the cost of doing business and creates unfair competition.

Procurement Rules and Challenges

The report also points to Kenya’s procurement laws, including the “Buy Kenya Build Kenya” policy and the Public Procurement and Asset Disposal Act, saying they are meant to support local businesses but sometimes disadvantage foreign firms.

It adds that companies without strong local connections often struggle to win contracts unless they partner with influential local players.

Court disputes over tenders are also common, causing delays in project delivery.

Digital Procurement System Issues

Kenya introduced an electronic government procurement system (e-GP) in 2025 to improve transparency in public tenders.

However, its full rollout was suspended after a court ruling, following objections from county governments who said the system was introduced too quickly.

This has left a mixed system where both digital and manual processes are still used, creating room for manipulation.