Alarm as Kenya leads Africa in AfDB corruption cases, second only to Nigeria

Kenya has emerged as one of Africa's hotspots for fraud and corruption in African Development Bank-financed projects, with disclosures showing the country ranks second only to Nigeria in the number of sanctioned projects since 2013.

The development raises fresh alarm over the integrity of public procurement as Nairobi aggressively pushes public-private partnerships to plug its budget deficits.

The damning report comes at a critical moment for President William Ruto’s cash-strapped government, which is aggressively pushing public-private partnerships as a viable funding model amid severe fiscal constraints.

The pan-African lender has sanctioned nine projects in Kenya since 2013, accounting for 11 per cent of the total sanctioned projects across the continent, according to the bank's sanctions data.

Nigeria leads with 12 cases, while Uganda also has nine sanctioned projects. The nine Kenyan projects involve 14 companies and four individuals.

Overall, East Africa accounts for 34 per cent of all sanctions cases submitted to the Sanctions Commissioner since 2013, the highest of any region, driven largely by the high number of cases in Kenya and Uganda.

The offences in Kenya include the submission of falsified financial statements, forged performance bonds and advance payment guarantees, forged contract award and project completion certificates, false contract references, failure to disclose conflicts of interest, and concealing the country of origin of goods.

Among the Kenyan projects that have attracted sanctions is the Kenol-Sagana-Marua Highway Improvement Project.

Chinese firm Jiangxi Transportation Engineering Group Ltd was handed a 12-month debarment and ordered to pay restitution for fraudulent practices during implementation of the dualisation of the Kenol-Sagana (A2) Road, part of the Trans-Africa Highway connecting Cairo to Cape Town.

Another Chinese firm, Weihai Construction Group, was also banned for fraud in the Sh33 billion highway project.

In the Last Mile Connectivity Project Phase II, Kenyan civil and electrical engineering firm Esiko Kenya Enterprises Ltd received a nine-month debarment while two Chinese nationals, Chen Chao and Huang You, were debarred for 12 months for fraudulent practices in the procurement of plant design, supply and installation of low-voltage single-phase lines.

At the same time, in the Nairobi Rivers Basin Rehabilitation and Restoration Programme: Sewerage Improvement Project, Phase II Weihai Construction Group was sanctioned for fraud in this project.

Meanwhile, in the Regional Rusumo Falls Hydropower Project one firm was sanctioned for fraud involving misrepresentation of contract reference values and completion dates.

Among Water and sanitation projects in Kenya, multiple firms have been sanctioned across various water infrastructure tenders for submitting false contract references and falsified documents.

Other Kenyan-based companies recently banned include Aerospace Aviation, Beta Trading Company, Global Interjapan (Kenya) Limited, Eva-Top Agencies, Madujey Global Services, Mactebac Contractors Limited, Techno Brain (Kenya) Ltd, Sinotec Company Ltd (Kenya Branch Office), Sino-Kenya Engineering Group Company Ltd, Rockey Africa Ltd, Reef Building Systems Ltd, Ultimate Engineering Ltd, Express Automation Ltd, and Kenya Power contractor Chint Electric. Individuals Mr Yuehua Bai and Mr Joram Opala Otieno are also on the list.

The sanctioned projects are concentrated in the energy, roads, and water sectors, the most capital-intensive sectors, explaining the unethical means firms use to clinch lucrative deals.

Kenya is in discussions with the AfDB for a $150 million  (Sh19 billion) project to expand the power grid and connect an additional 1.5 million people.

Developers of Kenya's first PPP-funded power transmission lines have approached the AfDB, among other banks, for loans of up to Sh34 billion.

The country is pushing to break ground on two $311 million (Sh40.4 billion) PPP-backed electricity transmission lines.

The AfDB has been a key financier of Kenyan infrastructure projects, and the concentration of sanctions in AfDB-funded projects threatens to undermine investor confidence precisely as Nairobi seeks to attract private capital through PPP frameworks.

The United States, under President Donald Trump's administration, earlier flagged Kenya's public procurement process as prone to graft.

 In its 2025 National Trade Estimate Report, the US raised concerns over corruption in Kenya's tender procurement processes, citing lack of transparency and fairness.

"Corruption often influences the outcome of public tenders, and many of these tenders are challenged in the courts," the report stated. "Tenders are often not announced in a timely and transparent manner. Foreign firms, some without proven track records, have won government contracts when partnered with well-connected Kenyan firms or individuals".

The report also criticised Kenya's Integrated Financial Management Information System for security gaps that allow manipulation and hacking.

Subsequent US reports have continued to highlight widespread corruption in procurement at both national and county government levels. "Kenya has not effectively implemented its anticorruption laws. US firms continue to report direct and indirect requests for bribes from multiple levels of the Kenyan government," the 2026 National Trade Estimate Report noted.

In a significant development, the AfDB's Board of Directors in October 2025 appointed Lady Justice Fatuma Sichale, a Kenyan judge of the Court of Appeal and Commissioner at the Judicial Service Commission, as Sanctions Commissioner, the first woman to hold the position.

She was appointed alongside Mr Sylvain Oré, an Ivorian national and former President of the African Court on Human and Peoples' Rights, as Alternate Commissioner.

Justice Sichale's career reflects a lifelong commitment to integrity and public service, having held several leadership roles within Kenya's anti-corruption framework, including Member of the National Anti-Corruption Steering Committee, Board Member of the Kenya Anti-Corruption Authority, and subsequently Vice Chairperson and Deputy Director of the Kenya Anti-Corruption Commission.

The Sanctions Office reviewed a record 17 cases in 2025, the busiest year since the sanctions system was established in 2013. Fraudulent practices accounted for 73 per cent of all sanctions cases considered since 2013, occurring mainly during procurement processes.

Debarment is the baseline sanction, following which sanctioned entities or individuals are ineligible to participate in any Bank Group-financed or administered activities.

Sanctions range from letters of reprimand to debarments of up to five years, with the heaviest sanction handed down since 2013 being a five-year debarment. Sanctioned entities are also required to implement integrity compliance programmes before they can be re-eligible for AfDB-financed activities.

The AfDB also participates in cross-debarment with other multilateral development banks, meaning entities sanctioned by one MDB are ineligible to participate in activities financed by the others.