Nairobi, Kenya – April 9, 2025
The United States has raised fresh concerns about corruption and inefficiencies in Kenya’s public procurement process, flagging significant barriers to U.S. firms seeking to bid for government tenders. In its 2025 National Trade Estimate (NTE), the U.S. Trade Representative’s office cited persistent issues of bribery, extortion, and opaque tender processes as major obstacles for American investors.
The report highlights that tender announcements in Kenya are often neither timely nor transparent, and foreign firms—many of which lack proven experience—frequently secure government contracts by partnering with well-connected Kenyan businesses or individuals.
“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 states.
Concerns Over IFMIS and Procurement System Failures
Despite Kenya’s push for digital procurement systems, including the Integrated Financial Management Information System (IFMIS), the U.S. has expressed frustration at the system’s ongoing inefficiencies. The report points to technical limitations such as poor connectivity, insufficient capacity in county government offices, and security vulnerabilities, which leave the system open to manipulation and hacking.
“Concerns about IFMIS include insufficient connectivity, technical capacity in county government offices, central control shutdowns, and security gaps,” the U.S. report states.
While Kenya has made strides toward digitalising procurement to ensure fairness, these issues are seen as significant barriers to effective implementation, leaving foreign investors at a disadvantage.
Customs and Intellectual Property Challenges
In addition to procurement issues, the U.S. has raised concerns about Kenya’s customs procedures and intellectual property protection. The report describes the customs process as “complex and inefficient,” with uncoordinated offices, inconsistent decisions on classification and valuation, and unnecessary inspections creating delays and additional costs for American businesses.
The widespread availability of counterfeit goods in the Kenyan market also remains a pressing issue. Although Kenya signed the World Intellectual Property Organization (WIPO) Copyright Treaty in 1996, the country has not yet ratified it, causing challenges for U.S. firms in protecting their intellectual property.
“Kenya signed the World Intellectual Property Organization (WIPO) Copyright Treaty in 1996 but has yet to ratify it,” the U.S. report notes.
Kenya’s Reform Efforts
The U.S. Trade Representative’s comments come shortly after Kenya began rolling out its Electronic Government Procurement (e-GP) System, designed to address the very issues raised in the report. This initiative, backed by the International Monetary Fund (IMF), seeks to enhance transparency, reduce procurement costs, and improve accountability in government contracting. By integrating IFMIS into the e-GP system, the government aims to curb corruption and streamline the procurement process, ultimately reducing exploitation by rogue players in the system.
The Kenyan government is optimistic that the e-GP system will address the concerns raised by international investors and improve the overall business environment, especially for foreign companies operating in the country.
Conclusion
While Kenya’s procurement system undergoes reform, the U.S. Trade Representative’s report underscores the ongoing barriers facing American businesses, from corruption and inefficiency to intellectual property concerns. Despite the introduction of digital procurement systems and other reforms, it is clear that Kenya must take further action to enhance transparency and build trust with international investors.
