NAIROBI, Kenya, Apr 2 – A new report by the United States Government has raised concerns over corruption and lack of transparency in Kenya’s public procurement system, warning that the challenges are undermining fair competition and investor confidence.
The 2026 National Trade Estimate (NTE) Report says government tenders are often influenced by political connections, locking out credible firms while favouring well-connected companies.
According to the report, this has made it difficult for foreign firms, particularly from the United States, to compete fairly for public contracts despite Kenya’s standing as a regional business hub.
“U.S. firms have had limited success bidding on Kenyan Government tenders. Corruption often influences the outcome of public tenders, and many of these tenders are challenged in the courts,” the report states.
It adds that procurement processes are frequently opaque, with tenders not announced in a timely or transparent manner, creating room for manipulation.
The report further notes that some companies secure contracts without proven track records, often through partnerships with politically connected local entities, raising concerns over value for money in public spending.
Despite the existence of laws such as the Public Procurement and Asset Disposal Act and initiatives like “Buy Kenya Build Kenya,” the report says enforcement remains inconsistent, with some policies misused to influence procurement outcomes.
Efforts to digitise the system through the e-Government Procurement (e-GP) platform have also faced setbacks following a 2025 High Court ruling that halted its full implementation, leaving parts of the process manual and vulnerable to interference.
Beyond procurement, the report highlights corruption as a broader structural challenge affecting business operations in Kenya, citing bribery and unclear regulatory processes at both national and county levels.
It concludes that weak transparency and enforcement of anti-corruption measures continue to erode fair competition and constrain economic growth.
