Deep State corruption hurting Kenya's economy - Africog

As Kenyans gear up for the 2025/2026 budget, a report by Africa Centre for Open Governance (Africog) has shed light on widespread corruption and poor financial management at the back of ailing Kenya's economy.

The report, launched in Nairobi by Africog and its partners under its Okoa Uchumi platform, outlined a pattern of manipulated policies, mismanaged loans, and opaque mega-projects, all tied to top government officials.

The report recounts a prior incidence where Former Attorney General Justin Muturi, alleged that he was pressured to approve loans irregularly. To this, Muturi called the president “irredeemably corrupt.”

 “This is not just financial mismanagement. It is a system designed to loot public resources through state machinery,” the report states.

One of the most glaring revelations involved President William Ruto’s alleged push for a Sh129 billion tree-planting deal with a Russian company during COP28 in Dubai, which bypassed due diligence. Okoa Uchumi labelled the project “a financial trap disguised as environmental policy.”

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Muturi also criticised attempts to revive the controversial Arror and Kimwarer Dams projects, which had earlier been shelved due to financial and audit concerns.

“We were being pushed to fast-track approvals without inflation adjustments or proper audit clearance,” said Muturi.

The report also accused the government of manipulating major programs like the Affordable Housing scheme and the Social Health Insurance Fund to benefit politically connected financiers. It further revealed hidden ownership within the e-Citizen digital services platform and dubious dealings in carbon trading under the climate policy.

The stakeholders speaking in Nairobi noted that, "we are seeing a pattern of elite capture, where public institutions are weaponized for private gain,”.

Concerns were also raised about the mismanagement of a $279 million concessional loan meant for 16 China road projects, which were either abandoned or double-financed.

“We’re borrowing twice for the same roads while contractors claim damages daily. It’s theft in broad daylight,” the report read.

It also slammed the National Assembly for failing to exercise its budget oversight role. “Parliament has become a rubber stamp for retroactive approvals of unbudgeted spending. This undermines the Constitution and public trust,” the report read.

Okoa Uchumi called for urgent budget reforms, prosecution of those named in financial scandals, and stricter parliamentary oversight mechanisms.

“We cannot budget our way out of corruption,” the report advised, urging citizens to demand accountability even as the budget making process takes shape.