Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


75pc of Kenyan managers have experienced fraud in the last 2 years: PwC

Firms reported to have lost at least Sh10 million in the last two years, a 23 percent rise from the 2016 report./FILE

NAIROBI, Kenya, Feb 27 – Three-quarters of Kenyan firms have experienced at least one form of economic crime in the past two years.

This is according to a Global Economic Crime and Fraud Survey by PwC which also puts the global average at slightly below 50 percent and the African average of 62 percent.

116 Board members and Senior Managers in large, medium and small organizations say Asset Misappropriation continues to be the most prevalent economic crime in Kenya and globally.

Fraud committed by consumers ranked second in the survey with a 37 percent incident rate but significantly prevalent in the financial services.

Other economic crimes captured by the survey include; procurement fraud, bribery and corruption, business misconduct, accounting fraud, cybercrime, HR fraud, money laundering, insider trading among others.

Forensics Leader at PwC East Africa, Muniu Thoithi, says losses attributable to economic crime continue to prove a challenge for Kenyan organizations with firms reporting to have lost at least Sh10 million in the last two years, a 23 percent rise from the 2016 report.

“This maybe an indication of increased awareness on the part of Kenyan organizations,” Thoithi comments, adding that, “as Kenyan organizations set out policies to prevent and control fraud, we can hope that the number and costliness of fraud incidents will reduce.”

Nevertheless, the report shows Kenya’s prevalence rate of economic crime and the margin of difference between Kenya and the global/African averages from 2016 reveals that fraud in Kenya continues to be a pervasive problem, “requiring serious, well thought out and even societal interventions to both prevent and control it.”

For the first time, the report compares the survey results in Kenya to those observed in the East African Region (Uganda, Tanzania, Uganda, Rwanda) and Zambia, with Kenya ranking highest in the incidence rate of economics across the board.

The report recommends a heightened detection process to curb fraud following 2018 survey revealing that corporate fraud has been at an all-time high, globally.

Advertisement. Scroll to continue reading.

“Not only is it necessary to have the right technology and internal controls in place, organisations must invest in people and create an organisation culture where integrity, transparency, vigilance, and accountability in encouraged and upheld consistently by all stakeholders,” notes the GEC survey, at the 2018 survey had the highest prevalence rate of economic crime.

Click to comment

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...

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...


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


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


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


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