State Capture, Graft Holding Back Kenya’s Economy, AfDB Says

Kenya needs to tackle graft that’s draining the nation’s finances and undermining economic growth, according to the African Development Bank.

Corruption and illicit financial flows cost the East African nation as much as $1.5 billion annually – funds that could transform health, education, and infrastructure development, the AfDB said in a report published on Wednesday. Public spending inefficiencies cost another 5% of gross domestic product, while tax exemptions and incentives amount to an additional $800 million a year.