Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Report by PwC Kenya shows senior managers have focused on junior staff hence giving more room for the middle level managers to steal from the organisations/FILE

Kenya

Survey: Mid-level managers lead in economic crimes

Releasing the report on Tuesday, PwC Kenya's Forensics Services Leader Muniu Thoithi said most of the senior managers have focused on junior staff hence giving more room for the middle level managers to steal from the organisations/FILE

Releasing the report on Tuesday, PwC Kenya’s Forensics Services Leader Muniu Thoithi said most of the senior managers have focused on junior staff hence giving more room for the middle level managers to steal from the organisations/FILE

NAIROBI, Kenya, Feb 25 – Fifty four percent of fraud activities in Kenyan companies are committed by middle level managers, according to the latest economic crime survey by PricewaterhouseCoopers (PwC).

This is the highest compared to junior staff and senior managers who commit 28 percent and 13 percent of the economic crimes respectively.

Releasing the report on Tuesday, PwC Kenya’s Forensics Services Leader Muniu Thoithi said most of the senior managers have focused on junior staff hence giving more room for the middle level managers to steal from the organisations.

The survey shows that 61 percent of the economic crimes are committed by people inside the company while 46 percent are external.

Similar to past surveys, 85 percent of the fraudsters in the companies are male aged between 31 and 40 years and who have served in their roles for a period of between three and five years. A majority are also holders of a first university degree.

“Typically, economic crime is committed when three conditions are present; life pressure, opportunity and personal rationalisation for the crime,” Thoithi said.

Among the five major economic crimes featured in the report, asset misappropriation was the highest at 77 percent.

Others included accounting fraud at 38 percent, procurement fraud at 31 percent, bribery and corruption at 27 percent and cybercrime at 22 percent.

However in general, the level of economic crime in firms in Kenya dropped from 66 percent in 2011 to 52 in 2014.

Meanwhile 30 percent of the respondents in Kenyan firms said they were always asked to pay a bribe to win a business deal while 45 percent lost business deals to their competitors for not paying bribe.

“According to the Kenyan respondents to the 2014 survey, bribery and corruption accounted for 27 percent of economic crimes in their organisations, which is a marginal increase from 23 percent in 2011,” he said.

Advertisement. Scroll to continue reading.

Companies which were victims of these frauds indicated that they lost between Sh8.6 million dollars to Sh430 million in between 11 to 100 incidences in the last two years.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...